Xusheng shares (603305): 2018 revenue growth further optimistic about the opportunities for the rise of new energy vehicles

Xusheng shares (603305): 2018 revenue growth further optimistic about the opportunities for the rise of new energy vehicles

Core points: 1.

Investment Inc. announced its 2018 annual report.

The company achieved operating income of 10.

96 ppm, an increase of 48 in ten years.

27%; net profit attributable to parent company2.

0.94 million yuan, an increase of 32 in ten years.

23%; net profit attributable to parent company after deduction is 2.

840,000 yuan, an increase of 33 in ten years.



Our Analysis and Judgment (1) The cooperation with Tesla has deepened, and the long-term revenue increase has been significantly increased, with the company’s total revenue increasing by 48%.

27%, reaching 10.

9.6 billion, net profit attributable to mothers increases by 32 each year.

23%; of which Tesla Diesel 6.

69 trillion, accounting for 61 of total revenue.

08%, an annual increase of 61.


The net cash flow generated by the company’s operating activities increased by 57 compared with the previous year.

13%, mainly due to the expansion of the company’s current sales scale and the corresponding increase in net cash flow; the expansion of the company’s production and sales scale and the public issuance of convertible corporate bonds resulted in an increase in total assets at the end of the period compared to the initial period68.


(II) Decrease in gross profit margin. The growth 南京桑拿网 rate in 2018Q4 was significantly reduced. In 2018, the company reduced its gross profit margin in the automotive, industrial, mold and other sectors.

39%, 0.

66%, 5.

88% and 1.


It was initially caused by the company’s replenishment of factory buildings, increased depreciation expenses for equipment and changes in the structure of automotive products during the year.

However, in terms of the main business by region, export sales and domestic sales increased by 54.

26% and 29.

04%, mainly from the company’s continued growth in auto parts sales to Tesla, Polaris and other foreign customers; revenue in the fourth quarter of 2018 decreased to 2.

710,000 yuan, a decrease of 18 from the third quarter.

41%, a decrease of 25 per year.


(3) Layout of the new energy vehicle market, and further investment 淡水桑拿网 expansion. The company’s largest customer, Tesla, started cooperation in 2014. In January 2019, Tesla’s Shanghai Super Factory started construction and laid a foundation. According to the disclosed schedule, TeslaThe Shanghai plant will be put into production at the end of 2019. The initial production target is 3,000 Model 3 / week. The landing of the plant will continue to drive the company’s performance growth; through the increase in demand for new energy vehicle products, the scale will increase, and the proportion of high-end parts will continue to increase.The cooperation with Tesla has laid a good foundation for the company to develop the new energy vehicle market. At present, the company has also officially cooperated with customers such as Ningde Times, Great Wall Motors, Eaton, Valeo-Siemens, Polaris, Flextronics, etc .;The company has issued convertible bonds and raised projects to support “lightweight and environmentally friendly aluminum-magnesium alloy automotive parts manufacturing projects” and “new energy automobile precision casting and forging projects”, expanding the company ‘s production capacity, enriching its product chain and further consolidating the company.Leading technology in the field of aluminum new energy auto parts.


Investment suggestions After the company’s production capacity is expanded, its performance is expected to continue to grow.

It is estimated that the net profit attributable to mothers will be 4 in 19-20.

6.9 billion / 5.

83% billion increased 59.63% / 24.

37%, corresponding to an EPS of 1.

17 yuan / 1.

46 yuan, corresponding to PE is 27.


07 times, for the first time give a “cautious recommendation” rating.


Risk warnings (1) The overall growth rate of the automotive industry is not up to expectations; (2) Tesla’s sales are below expectations.