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Xingyu Co., Ltd. (601799): Industry picks up, overlaps with new car volume, profits return to high growth

Xingyu Co., Ltd. (601799): Industry picks up, overlaps with new car volume, profits return to high growth

Event description On October 25, 2019, Xingyu Co., Ltd. released three quarterly reports to achieve operating income of 41.

1 billion, an increase of 10 in ten years.

2%, net profit attributable to parent company is 5.

300 million, an annual increase of 21.

0%; of which, in the third quarter, a single quarter achieved operating income of 13.

9.8 billion, an increase of 9 previously.

7%, net profit attributable to the parent company1.

9.2 billion, an increase of 37 in ten years.


Incident review The rebound in industry output and the release of new models have driven revenue beyond major downstream customers.

The company’s main customer FAW-Volkswagen produced 32 in the third quarter.

50,000 vehicles in the past ten years 11.

3%, an increase of 9 from the previous month.

1%, FAW Toyota’s output in the third quarter was 14.

70,000, 20 years ago.

0%, ring-on-epoxy 27.


The output of FAW-Volkswagen, a downstream customer, has picked up, and FAW Toyota’s production volume has dropped from the previous month due to the replacement of Corolla.

Company revenue achieved 13.

9.8 billion, an increase of 杭州桑拿网 9 in ten years.

7%, an increase of 9 from the previous month.

0%, significantly further the production performance of major customers.

In the end, the company added new models such as Sagitar and Xuanyi, and gradually increased product upgrades to increase the value of bicycles.

Product upgrades boosted gross profit margins, and profit growth exceeded market expectations.

The gross margin increased significantly, and the gross margin increased in the third quarter.

4 averages, which is an increase of 0 from the previous month.

6 units.

The company’s proportion of all LED models has increased, and its profitability has continued to improve.

Expenses and expenses during the single quarter of 2019Q8.

8%, it is estimated that the proportion in the same period last year was basically flat.

The proportion of sales, management and R & D expenses is basically the same as last year.

Under the relatively limited recovery in revenue scale, the proportion of expenses remained stable. In the future, the scale of the industry will gradually increase, and the expense ratio is expected to further decline.

The industry pressure system was gradually lifted, the company’s new model and new product orders were abundant, and high growth expectations continued.

The demand recovery in the industry in the third quarter was relatively limited, and the output of downstream automobile companies still showed negative growth.

In the fourth quarter, after the industry went to the warehouse last year, the base number dropped, the industry output growth rate is expected to pick up, and the downstream suppression will further weaken.

The company is currently in Japanese, and German customers have received a large number of new model orders, and the penetration of full LED headlights has continued to increase.

Under the background of industry stability, revenue growth is expected to accelerate.
The scale effect drives the improvement of profitability, and profits are expected to continue to maintain high growth.
The market and products are dual-driven, and Xingyu has ample room for growth and maintains a “buy” level.

Xingyu’s LED penetration has just begun. Customers continue to expand Japanese and luxury car brands, and overseas expansion is fully implemented. The future revenue and profit space is still huge.

Considering that the industry rebounded less than expected, the company’s revenue forecast was slightly adjusted.

The company’s EPS is expected to be 2 in 2019-2021.

75, 3.

63, 4.

54, corresponding PE is 28X, 21X and 17X.

Risk Warning: 1.

LED car light penetration speed is less than expected; 2.

Industry sales continued to fluctuate significantly.