SAIC Group (600104): Q3 results narrowed, investment income turned positive several times

SAIC Group (600104): Q3 results narrowed, investment income turned positive several times

SAIC Group (600104): Q3 results narrowed, investment income turned positive several times

Event: The company announced the third quarter of 2019: the first three quarters achieved operating income of 5853.

4 ‰, a decline of 13 per year.

3%; net profit attributable to mother was 207.

900 million, down 24 a year.

9%; deduct non-net profit 188.

2 trillion, down 25 a year.


The company’s Q3 performance decreased by 19 year-on-year.

1%, the decline has narrowed significantly.

5%, every 6 sales of passenger cars.


Affected by the excessive downturn in the industry’s prosperity, the company’s Q3 sales continued to fall by 9%.

2%, of which: SAIC Volkswagen fell by 4 in ten years.

6%; SAIC-GM dropped 19 in ten years.

1%; SAIC passenger cars grow by 6 per year.

6%; SAIC-GM-Wuling dropped by 15 in ten years.


Except for SAIC-GM, the decline in sales of Q3 for each brand continued to narrow. In this case, the company’s Q3 revenue was 2090.

500 million, down slightly from 0 previously.

4%, an increase of 18.

7%, better than the industry level; net profit attributable to mothers 70.

300 million, a decline of 19 per year.

1%, an increase of 27 from the previous month.

The decline of 5% narrowed significantly, indicating that the company’s performance has entered a repair channel.

We expect that the decline in industry sales Q4 is expected to narrow quarter by quarter, and the company’s performance is trying to stabilize and rebound.

Investment income in the third quarter turned positive year-on-year, and joint venture performance picked up significantly.
The company achieved investment income of 74 in the third quarter.

500 million, an annual increase of 4.


We believe that the negative impact of the narrowing of the decline in the auto market and the relative decline of the five countries and six countries gradually disappeared. Terminal brands of joint venture brands such as SAIC Volkswagen and SAIC GM were resumed. The company’s bicycle profit rose significantly, resulting in a return on investment income of 16.

9% (2019Q2 investment income is 63.

700 million).

The joint venture brand of the company, SAIC-Volkswagen, has shifted its product power. SAIC-GM is still in a strong product cycle. The sales volume of the joint-venture brand is expected to realize the recovery of the industry.

The industry’深圳桑拿网s recovery is imminent. The company’s worst moment is about to pass. Although there are twists and turns in this round of industry recovery, the trend remains the same.

And more often, the base pressure will be less, especially after 15 consecutive months of negative growth after July 2018, and even a deviation of more than 10% after September, so the industry ‘s narrowing decline in the second half of the year is worth looking forward to.

As a leading domestic automobile company, the joint venture brand is stable and the basic market is stable. SAIC Volkswagen and SAIC GM are still in the strong product cycle. The independent brand trend is upward. The company’s performance is expected to usher in the recovery of the industry.

At the same time, the company has a high annual dividend, and the current dividend rate is 5.
4%, both higher allocation value.

Earnings forecast and investment recommendations are expected to be 2 EPS in 2019-2021.


90 yuan, the corresponding PE is 9 respectively.



0 times.

Maintain “Buy” rating.

Risk warning: The automotive industry is weaker than expected; the company’s product sales are lower than expected.