Sinotruk (000951): Q3 single-season performance under pressure and subsequent reforms attempt to deepen

Sinotruk (000951): Q3 single-season performance under pressure and subsequent reforms attempt to deepen

Event: The company released three quarterly reports, and the first three quarters of 2019 achieved cumulative revenue of 292.

59 ppm, a ten-year average of 6.

28%, net profit attributable to mother 8.

20 ppm, an increase of 12 in ten years.

03%, deducting non-net profit 7.

6.6 billion.

Q3 single-quarter revenue of 67.

910,000 yuan, an average of 21 in ten years.

75%, net profit attributable to mother 1.

80 ‰, 27 years ago.

49%, deducting non-net profit 1.

7.3 billion.

Q3 single-season performance is under pressure, and subsequent reforms are expected to further deepen.

In the third quarter, under the influence of the off-season of the heavy truck industry and the company’s own adjustments, the sales volume in the third quarter continued 深圳丝袜会所 to show a certain range. The company’s single-quarter revenue and profits faced certain pressure in the short term.

At the end of September, part of Sinotruk Group’s equity was transferred from Jinan SASAC to Shandong Provincial SASAC for free, which opened the prelude to further restructuring of Sinotruk and Weichai, and gradually deepened reforms. At the same time, it also evaluated the key KPIs for improvement in marketing.It is expected to see gradual improvement in sales in the future.

The gross profit margin decreased slightly in the single quarter, and the expense ratio increased.

Single quarter gross margin in the third quarter 11.

16%, down slightly from the second quarter.

Three averages, but still basically maintained at a high level in the past three years.

The sales expense ratio and financial expense ratio in Q3 were 3 respectively.

95%, 0.

56%, a month-on-month increase of 1.

93, 0.

The total of 16 management fees decreased slightly by zero.

With an average of 07, the three-fee total expense ratio increased by 2 from the second quarter.

04 averages.

The dual policy is expected to increase, and the heavy truck industry is still supported.

The number of vehicles with national emission standards of 3 and below is expected to exceed 1 million or more. In some areas, the restriction of low-emission heavy-duty vehicles is encouraged to encourage high-emission vehicles. It is expected that the replacement process will gradually accelerate.

Affected by other policies and infrastructure expectations, heavy trucks are expected to release incremental growth in the future.

In addition, after the Wuxi accident, heavy truck management is expected to be upgraded and deepened, and heavy truck sales are still supported.

In addition, the heavy truck industry has more than 7 million vehicles, and the mid- and long-term sales hub is also striving to improve.

The company’s engineering heavy trucks have always had obvious advantages. The tractors have been market-oriented from the product development side, and the supply side has been significantly improved.

Investment suggestion: In the third quarter, the company’s single-quarter revenue and profit are under pressure.

However, taking into account the replacement of the country’s three stocks and the renewal of its efforts to strengthen governance, as well as potential future policy and infrastructure expectations, the heavy truck industry is still supporting.

We expect the company’s revenue to be 383 in 2019/2020.

1.2 billion / 395.

60 ppm, net profit attributable to mothers is 10.

42 ppm / 12.26 ppm, corresponding to an estimated 11x / 9x, respectively, giving a “Buy” rating.

Risk reminder: the company’s reforms have failed to meet expectations