SAIC Group (600104) Interim Report Comments: Performance is slightly lower than expected, waiting for the industry to recover

SAIC Group (600104) Interim Report Comments: Performance is slightly lower than expected, waiting for the industry to recover

Key Investment Events: The company released its 2019 Interim Report, which achieved 3762 in the first half of the year.

93 trillion, down 19 a year.

05%; net profit attributable to mother is 137.

64 ppm, a decrease of 27 per year.

49%.

Among them, Q2 achieved revenue of 1761.

01 billion, down 22 a year.

09%; net profit attributable to mother is 55.

1.3 billion, down 40 a year.

56%.

Passenger car sales growth rate is slightly lower than the industry, new energy, and exports continue to grow.

In the first half of the year, the company sold 253 passenger cars.

80,000 vehicles in the past ten years 17.

6%, slightly lower than the industry sales growth rate (-12.

9%).

In terms of brands, Shanghai Volkswagen 杭州桑拿养生会所 sells 91.

90,000 vehicles, 9.

94%; SAIC-GM sales 83.

40,000 vehicles, 12 in the past ten years.

91%; SAIC-GM-Wuling sales 74.

50,000 vehicles, 29 in the past ten years.

19%; SAIC passenger car sales 31.

20,000, a total of 13 in ten years.

18%.

In terms of new energy, the company’s new energy vehicle sales in the first half of the year8.

20,000 vehicles, an annual growth rate of 42%, continued to maintain rapid growth; exports and overseas sales reached 14.

50,000 vehicles, an increase of 11 in ten years.

5%, vehicle exports continue to rank first in the country.

The gross profit margin was under pressure, and the expenses slightly increased.

(1) The company’s gross profit margin for the first half of the year was 12.

61%, a decrease of 0 per year.

52 units; in a single quarter, Q1 and Q2 gross 杭州夜网论坛 sales margin was 12.

72%, 12.

49%, a decrease of 0 every year.

35, 0.

70 units.

(2) Expenses, expenses and expenses during the first half of the year11.

56%, increasing by 0 every year.90 single, mainly due to the increase in sales expense ratio (+0.

95%).

(3) On the profit side, the net profit attributable to the mother in the first half of the year was 137.

6.4 billion (-27.

49%), Q1, Q2 return to the net profit of the mother is 82.

5.1 billion (-15.

00%), 55.

1.3 billion (-40.

56%).

Among them, SAIC Volkswagen, SAIC-GM, SAIC-GM-Wuling, Huayu Automotive, and SAIC Finance respectively achieved net profit of 98.

800 million (-36.

14%), 71.

100 million (-30.

59%), 8.

400 million (-58.

68%), 33.

600 million (-29.

53%), 28.

80,000 yuan (+2.

33%) billion yuan.

The parts supply system is strong, electrified, and intelligently advanced simultaneously.

In the field of traditional parts, the company’s parts business is mainly composed of Huayu, SAIC and United Electronics, with a wide coverage and a strong supply system.

In terms of electrification, Huayu jointly established Huayu Magna’s production electric drive system assembly, and jointly established Ningde Times with SAIC Times and Times SAIC to produce battery cells and packaging respectively.

The construction of the core parts supply system for the new energy powertrain Sandian system was completed.

Other traditional automobile zero subsidiaries have simultaneously promoted the electrification process, covering various areas of thermal management, chassis and bodywork.

In terms of intelligence, Huayu Automobile has taken its own R & D route, millimeter-wave radar has achieved mass production, and the Roewe Marvel X Pro version with “last mile” autonomous parking has been released for mass production.

The industry is recovering and the company is expected to benefit first.

China’s auto market has entered a late stage of growth, and the industry’s growth center has declined. At the same time, it has the impact of the macroeconomic downturn. Auto sales will remain under pressure in the short term.

Against the background of stable aggregate demand and stimulating consumption in 2019, automobile sales have substantially improved the stability of the economy. In the second half of the year, benefiting from credit recovery and sales stimulus, automobile sales promoted marginal improvement.

The company’s products are evenly distributed, and its ability to resist risks is strong. Through the completion of SUV products, industry recovery companies are expected to benefit first.

Profit forecast: We expect the company to achieve net profit attributable to mother at 329/2019/2021.

70/354.

46/365.

950,000 yuan, the corresponding EPS is 2.

82/3.

03/3.

13 yuan.

As the leader of the whole vehicle, the company has a solid brand level, a large investment in research and development of independent brands, an early layout of the new four modernizations, a strong parts supply system, and the industry recovery company is expected to benefit first, giving it an “overweight” rating.

Risk reminder: the risk of the decline in passenger car sales, the risk of the joint venture behavior falling short of expectations.