Weifu Hi-tech (000581): Accumulation of large amount of impairment drags down the performance
2018 performance is lower than expected Weifu Hi-Tech announced 2018 results: operating income 87.
20,000 yuan, the average ten years 3.
3%; net profit attributable to parent company 24.
0 million yuan, a ten-year average of 6.
8%, corresponding to profit 2.
The company made provision for a large amount of asset impairment and its performance exceeded expectations.
The development trend accrued a large amount of impairment provision and dragged down performance, and investment income grew slowly.
The company’s 18-year asset impairment losses surged1.
1 times to 2.
51 ppm, mainly including provision for impairment losses on Protean investments based on the principle of caution1.
46 trillion, accrued 7,719 trillion inventory depreciation provisions, the company’s large amount of provision caused about 2 net profit 杭州桑拿论坛 impact.
14 ppm (and mainly reflected in 4Q18) is the main factor for performance indicators.
Company investment income 19.
USD 600 million, an annual increase of 6%, Bosch Automobile Diesel and China United Electronics increased slightly by 4% and 3%, respectively. Investment income contributed to the increase in profit, accounting for 75% of the company’s total profit.
2%, an increase of 9 per year.
The volume of the air intake system has been rising, and fuel injection has been affected by industry factors.
In terms of business, the company’s 18-year fuel injection system revenue increased by 10%, and gross profit margin decreased by 1.
3ppt was mainly caused by the heavy truck industry’s drag on sales growth, and the post-processing system was also affected by the profitability of independent brand passenger cars, and the gross profit margin dropped slightly.
The company’s air intake system became a highlight of tension, with sales increasing by 10%.
8%, revenue increased by 15.
7%, scale effect helped to increase gross profit margin3.
At 09%, the company ‘s market share of air intake business is constantly increasing, and it is expected to fully penetrate the passenger car market, bringing a new driver for the company ‘s performance.
Multi-point layout of new energy, dividend payout rate exceeded 50%.
The company has deployed in-wheel motor and fuel cell businesses in the field of new energy, and has actively explored potential markets for emerging businesses. However, substantial contributions still require time, waiting for new contributions from new energy deployment.
The company announced a dividend of 12 yuan per 10 shares for 18 years, corresponding to 50.
The 5% dividend payout ratio has reached a new high since nearly 10 years. The company’s end-period currency cash + wealth management products are close to 7.2 billion U.S. dollars, with safe marginal conversion.
Earnings forecast We maintain 19e earnings forecast27.
100 million, 20e profit forecast 28.
Estimates and recommendations Companies currently sustainably correspond to 19/20 years9.
5x P / E, maintaining the recommended level, but as the sector’s estimated hub moves upwards, we raise Weifu Hi-Tech’s target price by 23% to 28.
6 yuan, corresponding to 10 in 19/20.
0 times P / E, compared with current expectations of 18%.(B shares correspond to 5.
6x / 5.
2x 19e / 20e P / E, raise Solvay B target price by 9% to 19.
5 releases, corresponding to 6.
4x / 6.
0x 19e / 20e P / E, 15% upside.
) The sales volume of risk heavy trucks and passenger cars exceeded expectations, and the layout of new energy was lower than expected.