SAIC Group (600104): The industry is not saturated to the pressure of performance, waiting for sales to pick up

SAIC Group (600104): The industry is not saturated to the pressure of performance, waiting for sales to pick up

1.

Investment Inc. announced its semi-annual report for 2019.

The company realized operating income of 3762.

930,000 yuan, at least -19.

05%; net profit attributable to parent company 137.

64 ppm, at least -27.

49%; net profit attributable to parent company after deduction is 124.

950,000 yuan, at least -27.

61%.

2.

Our Analysis and Judgment (1) The downturn in the industry has dragged down the half-year performance. The increase in new energy vehicles is difficult to withstand the overall scale of the report.

05%, reaching 3,762.

9.3 billion, net profit attributable to mothers for a decade-27.

49%; 1,236 vehicles sold in the H1 domestic market in 2019.

50,000 vehicles, down 11 every year.

8%, of which 1,016 were passenger car sales.

20,000 vehicles, down 12 every year.

9%, 220 are commercial vehicle sales.

20,000 vehicles, down 6 every year.

7%.

In the first half of the year, the company achieved vehicle sales of 293.

70,000 vehicles, down 16 each year.

6%; of which, passenger car sales were 253.

80,000 vehicles, a decrease of 17 per year.

6%, commercial vehicle sales 39.

90,000 vehicles, down 9 each year.

6%.

In the first half of the year, the company’s new energy vehicle sales8.

20,000 vehicles, an annual growth rate of 42%, continued to maintain rapid growth; exports and overseas sales reached 14.

50,000 vehicles, an increase of 11 in ten years.

5%, vehicle exports continue to rank first in the country.

Overall, it is still difficult to predict the downward pressure on the main sales volume of the booth. The high base in the same period last year and the impact of the switchover of the country ‘s five countries and six countries have further increased the difficulty of the company ‘s steady growth.

(II) The revenue of its subordinate brands has been degraded more than twice, and the cost reduction and efficiency improvement have passed the pain period of the industry. According to the report, the revenue of the company’s sub-brands has decreased to varying degrees. SAIC Volkswagen’s revenue in the first half of the year was 1,127.

8.9 billion, a year-on-year decrease of 19%, and net profit attributable to mothers was 98.

8.3 billion, a year-on-year decrease of 36%; SAIC-GM’s revenue in the first half of the year decreased by more than 18% 重庆桑拿网 to 913.

8.4 billion, net profit attributable to mother reached 71.

14 billion yuan, a year-on-year decrease of 31%; SAIC-GM-Wuling’s revenue in the first half of the year was 366.

2.1 billion, a year-on-year decrease of 29%, and net profit a year-on-year decrease of 59% to 8.4.3 billion; Huayu Auto’s revenue in the first half of the year reached 705.

6.3 billion, a year-on-year decrease of 14%, and net profit fell by 30% each year to 33.

6.4 billion.

In order to cope with the cold winter of the industry, the company reduced its expense budget while focusing on key projects to optimize the payment rhythm.

Thirdly, promote lean production and improve operational efficiency.

The company further promotes lean management and operational improvements across the entire value chain, further shortening delivery cycles and accelerating market response.

(3) Actively expanding new business at home and abroad, expecting the industry to rebound in the future. At the same time, SAIC Group continues to actively explore new technologies. The Roewe Marvel X Pro version with the “last mile” automatic parking function is released for mass production., SAIC’s intelligent driving decision-making controller i-ECU achieves batch production, precision electronic maps achieve commercial application, and the company’s collaborative development mechanism in the intelligent driving industry chain has basically formed.

Zebra Wisdom System 3.

Version 0 is officially released, and the scene engine functions are further enriched to provide users with intelligent and proactive services in more scenarios.

In fact, after the initial success of SAIC ‘s “Overseas Internet Car Model” in the Thai market, this year ‘s rapid technology overlap with the Indian market. MG India ‘s first product equipped with SAIC ‘s Internet system iSMART, the MG Hector, was successfully launched at the end of June.

We expect that through the industry’s downturn in the second half of the year, the supply and demand of the country’s six models will be stable, and the profit of bicycles will pick up.

3.

Investment suggestion As one of the leading representatives of domestic OEMs, the company will fully deploy electric intelligence in the early stage. After the industry capacity is cleared, it will enjoy the leading dividend.

It is expected that the net profit attributable to mothers in 19-20 will increase by 35.4 billion / 38.2 billion US dollars -1.

64% / 7.

76%, corresponding to an EPS of 3.

03 yuan / 3.

27 yuan, corresponding to PE is 8.

15/7.

57 times, maintaining the “recommended” level.

4.

Risk warnings (1) The overall growth rate of the automobile industry is not up to expectations; (2) The risk of new energy vehicles making upslopes;