Weichai Power (000338)： Accelerating Technology Upgrade and Steady Growth in Performancezlmphnt
Weichai Power (000338): Accelerating Technology Upgrade and Steady Growth in Performance
Incident Description The company released its 2018 annual report, which was merged and the company realized operating income of approximately 1,592.
56 trillion yuan, an annual increase of 5.
1%, the net profit attributable to shareholders of the listed company is about 86.
58 trillion yuan, an annual increase of 27.
Event comments The performance in the fourth quarter was dazzling and profitability improved.
In Q4 2018, the company’s gross profit margin was 24.
33%, a marked increase from the third quarter of 2018. The sales expense ratio, management expense ratio and financial expense ratio were 6 respectively.
06%, down by 0 compared with the third quarter of 2018.
52 pieces, 0 pieces
18pct, performance has improved significantly.
The company’s gross sales margin in 2018 was 22.
33% (an increase of 0 from 2017.
50pct), selling expense ratio and financial expense 天津夜网 ratio are 6.
05%, down by 0 compared with 2018.
34pct, overhead cost 6.
64%, listed before 2017.
31 points, overall profitability improved.
The leader is generally stable and is expected to continue to benefit in 2019.
In 2018, benefiting from multiple factors such as rising demand for infrastructure and environmental protection upgrades, the heavy truck industry maintained a high degree of prosperity, and the company as a leader in segmented industries maintained a leading position in many areas of the heavy truck industry chain.
The first is to report sales of leading heavy truck engines36.
30,000 units (+0 a year.
0%), with a market share of 31.
6%; Second, Shaanxi Heavy Vehicle Co., Ltd., a controlling subsidiary, previously sold a total of 15 heavy trucks.
30,000 (previously 青岛夜网 +2.
7%), with a market share of 13.
3% (basically the same as 2017), ranking first among domestic heavy-duty truck companies; third, the holding subsidiary Fast Gear Co., Ltd. gradually sells gearboxes.
90,000 units (previously +8.
9%), 86 of which were sold for heavy-duty trucks.
90,000 units, with a market share of about 75.
In 2019, considering environmental protection needs and seeking continuous improvement, the implementation of the National Sixth Standard is imminent, and the demand for infrastructure continues to be strong. Sales of heavy trucks continue to remain high. As a leader in the industry, the company gradually exerts its own experience and technology accumulation to improve net profit margin.
Expansion of research and development is expected to further expand technological advantages.
Scale, the company’s R & D expenses and the size of R & D personnel have increased significantly. In 2018, the company’s R & D expenses were 64.
940,000 yuan (ten years +15.
0%), accounting for 4% of operating income.
08% (up from 2017.
35pct), 6,789 R & D staff (ten years +11.
0%), accounting for 9.
10% (up from 2017.
At the same time, the company is an enterprise in the industry that has initially completed the development and certification of a full range of 2L-13L national six engines, and has obtained a number of Euro Ⅵd emission certifications based on a number of engines that meet the requirements for small batch launch.To further expand technological advantages.
The implementation of the supplementary National Six Standards is expected to drive the value of related products to increase and develop at a high-end. The company’s technological advantages are expected to become the growth point of the company’s performance.
Plowing into new energy vehicles and deploying hydrogen fuel cells.
The company has completely launched a series of new energy heavy trucks. It also conducts technical research and product development in fuel cell technology, hybrid technology and pure electric technology. On November 26, 2018, Weichai Balla was jointly established with Ballard Hong Kong LimitedDehydro Energy Technology Co., Ltd. designs, develops, manufactures, and sells proton exchange membrane fuel cell products that can replace different fields and provide related services, including membrane electrodes, fuel cell stacks, fuel cell assemblies, fuel cell systems, and power management systems.
The company’s active layout includes the new energy vehicle industry chain within the hydrogen fuel cell. In addition, it has broadened the company’s blueprint in the field of auto parts and components, and has helped the company’s vehicle product line to be further improved and market competitiveness further enhanced.
The investment proposal estimates that the company’s EPS for 2019-2021 will be 1.
15\1.38\1.42, corresponding to the company’s closing price of 11 on March 26.
2 yuan, PE for 2019-2021 is 9 respectively.
74\8.17\7.89. Maintain “Buy” rating.
Existing risks: Heavy truck sales are lower than expected; overseas business advances are lower than expected; and the macro economy continues to decline.
Written by admin