Fuyao Glass (600660): Pressure on automobile market transition performance

Fuyao Glass (600660): Pressure on automobile market transition performance
Investment Highlights Event: The company released the 2019 first quarter report, and the company achieved operating income of 49 in Q1 2019.33 ppm, a 10-year increase3.91%; net profit attributable to mother 6.0.6 million yuan, an increase of 7 in ten years.72%; Q1 exchange loss 1.30 trillion, compared with 2 in the same period last year.1.9 billion.  In the Q1 auto market, company performance was under pressure.In the first quarter of 2019, passenger car sales are expected to be 5.26 million units, every thirteen.In this context, in Q1 2019, the company’s revenue was 49.30,000 yuan, an annual increase 杭州夜网论坛 of 3.91% growth rate; gross profit margin is 39.08%, falling by 2 every year.84 units; net profit after deduction is 5.15 ppm, with a ten-year average of 13.twenty two%.  U.S. factories quickly climbed to provide performance flexibility.Fuyao America achieved operating income of 34 in 2018.1.2 billion, net profit 2.460,000 yuan, a substantial increase in profit on the basis of achieving breakeven in 2017.From the semi-annual perspective, 2017H1-2018H2, Fuyao America achieved net profit of -0 respectively.48, 0.53,1.2.6 billion, 1.19 trillion, a significant improvement.As US plant output climbs rapidly, it will continue to contribute to profits.  The amount of auto glass and bicycle supporting value is on the rise, and the company will gain.Benefiting from the increase in the proportion of SUVs and the design trend of panoramic sunroofs, the average bicycle glass area has continued to increase.In addition, the application of high value-added glass (smart glass, edged glass, etc.) has also increased the unit price of automotive glass.The company’s automotive glass ASP was 164 in 2018.5 yuan / square meter, an annual increase of 3.68%.The value of auto glass bicycles is on the rise, and the company’s performance growth rate will exceed the growth rate of the automotive industry.  Earnings forecast: We expect the company to achieve net profit attributable to mother 40/2019/2020/2021.12/44.41/48.41 trillion, the corresponding EPS is 1.60/1.77/1.93 yuan.As an oligopolistic company of automotive glass, the company has high industry barriers and can fully enjoy the industry dividend of increasing the value of automotive glass bicycles. In the short term, the climb of US plant output will provide performance flexibility and give a “buy” rating.  Risk warning: Automobile sales are lower than expected, overseas growth is lower than expected, exchange rate loss gains and quantification risks, and raw material price fluctuation risks.