Zhongding (000887): Q3 results under pressure and wait for the inflection point to appear

Zhongding (000887): Q3 results under pressure and wait for the inflection point to appear

Zhongding (000887): Q3 results under pressure and wait for the inflection point to appear

Event: The company released the three quarterly report for the year of 19 and reported significant revenue 81.

800 million (decade-6).

5%), net profit attributable to mother 6.

0 billion (longer -42.

9%), of which the third quarter achieved revenue of 26.

0 billion (a year -2.

0%), to achieve net profit attributable to mother 1.

400 million (decade -58.

7%), performance under pressure.

Comments: 1. Segmentation in the third quarterly report a) The company achieved revenue of 26 in 19Q3.

0 billion (a year -2.

0%), net profit attributable to mother 1.

400 million (decade -58.

7%), the income side is basically the same, but profits continue to increase, mainly due to industry breakthroughs and the company’s expansion of research and development investment and increased research and development expenditure; b) gross profit margin: Q3 gross profit margin of 25.

9%, a decrease of 2 per year.

4pct, lower than the chain.

5 points, stable compared with the previous month. It is expected that the industry recovery in the future is expected to improve; c) In terms of three rates: the sales expense rate 5.

1%, an 杭州夜生活网 increase of 0 from the previous month.

1pct, a slight increase; the management expense ratio is 5.

7%, a decrease of 3 from the previous month.

9pct; financial expense ratio is 0.

8%, an increase of 0 from the previous month.

9pct, improvement; R & D expense ratio 7.

0%, an increase of 0 from the previous month.

9pct, the company continues to expand research and development spending.

2. Ten years of acquisition to build an international leader, benefiting from domestic substitution.

The company has gone through ten years of international mergers and acquisitions, and realized the “market-technology-strategy” -oriented triple jump. It has continuously acquired overseas high-quality assets, and its customers cover mainstream manufacturers such as Mercedes-Benz, Volkswagen, and BMW.

The company’s development context is clear, creating a “3 + 1” business system, of which sealing, shock absorption, and cooling systems are the three main businesses, and the air suspension business opens up imagination.

In the future, the company’s strategic focus will shift from extension to endogenous, high-end technology dating and second development of the domestic market. The product will be upgraded from a single system to an active layout of smart electrics, which will deeply benefit domestically produced alternatives.

3. Realize the overall layout of electrification, catch up with the development of new energy vehicles. Fast lane company’s in-depth layout in battery cooling systems, motor seals, battery mold seals, battery motor vibration reduction and noise reduction, bridge seal assemblies and other fields, product technology implementationLeading, the company successfully established cooperation with FAW-Volkswagen, Volvo, Dongfeng Nissan, Geely, Ningde Times, Tesla, and Weilai. Among them, MEB won 900 million orders for the entire life cycle, and Tesla’s US plant was equipped with sealing systems.

In terms of thermal management, the TFH cooling system has already received 48.6 million euros in Audi Q6 orders. The battery thermal management system is the world’s leading technology. The domestic market has already placed orders for new vehicles for electric vehicles.

Risk warning: Car sales are lower than expected, and new capacity release is lower than expected.