Hongfa shares (600885) 2019 first quarter report review: HVDC trend does not change, cars and GM perform poorly
This report reads: Hongfa’s performance is in line with expectations. Q1 domestic new energy vehicle sales doubled the company’s high-voltage DC relay sales, and GM and traditional automotive businesses performed well due to industry-wide factors. It is expected to improve in the future.
Investment Highlights: Maintain Overweight rating.
The company’s performance is in line with expectations, maintaining the EPS for 2019-2021.
59 yuan, maintaining a target price of 36.
4 yuan to maintain the level of overweight.
Performance was basically in line with expectations.
The company released the 2019 first quarter report, of which Q1 achieved revenue of 16.
$ 2.5 billion, growing by 1 every year.
8%; net profit attributable to mother 1.
57 trillion over five years.
61%, the performance was basically in line with expectations.
The rapid growth of power relays resumed, and the growth rate of HVDC is expected to exceed 50%.
The company’s power relays are blooming at home and abroad: 1) benefiting from the increase in the market share of the British and French power grids and the rapid development of the Southeast Asian market, the company’s overseas market maintains a rapid growth rate; 2) the domestic market from the 19th State Grid first tenderThe overall demand has risen rapidly. Through the follow-up of the 09 version of smart meter replacement progress, it is expected that the internal power relay market will resume a rapid growth trend.
In terms of high-voltage DC relays, Q1 domestic new energy vehicle sales have doubled as a whole, and the company as an industry leader 苏州桑拿网 is expected to grow more than 50%.
GM and automotive relays performed poorly due to industry influence.
According to the data from the China Automobile Association, Q1 auto production and sales in 2019 were 633.
570,000 and 637.
240,000 vehicles, a decrease of 9 per year.
81% and 11.
32%; of which Hongfa ‘s main domestic and American standard sizes have been expanded, the overall speed is higher than the industry average, and the distance of the company ‘s automotive relay replacement is expected to be affected by this.
General relays are also affected by the adjustment of demand in the home appliance industry and intensified market competition, and their overall performance is not good.
Risk warning: New energy vehicle sales are less than expected, exchange rate changes