SAIC Group (600104): Q3 earnings improved month-on-month

SAIC Group (600104): Q3 earnings improved month-on-month

Investment Highlights: Q3 earnings improved month-on-month.

On October 30, 2019, the company released the third quarter report for 2019. The operating income for the first three quarters of 2019 was 5,853 trillion, which was -13.

25%; net profit attributable to mother is 2.08 million yuan, -24 years.

86%; in the third quarter, single-quarter operating income was 209.1 billion, about -0.

40%, net profit attributable to mother is 7 billion yuan, ten years-19.


We believe that the decline in sales volume in the Q3 industry has gradually narrowed, and the company’s profitability as a leader in the industry has improved significantly from the previous quarter.

In Q3, gross profit margin levels continued to decrease from the previous month, while net interest rates rose slightly from the previous quarter.

The company’s gross profit margin for Q3 was temporarily reduced by 淡水桑拿网 one.

63pct, 0 than formaldehyde.

89pct; sales expense ratio, management expense ratio (including R & D) and financial expense ratio are -0.

49 points, -0.

04pct, +0.

04pct, respectively -0.

89pct, -0.

28pct, -0.

At 16pct, the decrease in sales expense ratio was obvious, and the decline in expense ratio drove the decline in net interest rate to rebound.

We judge that the bottom of the industry is obvious, and the upward cycle is gradually starting, and the company may benefit as an industry leader.

In September, terminal demand improved significantly, and insurance on the terminal overlapped several times.

2%, significantly improved compared with July and August rankings, the industry gradually picks up, the probability of turning positive increases month by month, it is worth looking forward to.

Earnings forecasts and investment advice.

The launch of the Volkswagen SUV strategy, Cadillac’s heavy volume, the rise of independent brands will provide strong support for the company’s fundamentals.

At the same time, more than 10 billion R & D investment each year helps the company expand its leading edge of core technology.

The company’s own-brand gasoline vehicles are already the first echelon, and have the strongest electric and intelligent core technology in the country. The advantages are obvious. In the long run, it will successfully transition to a travel service provider.

We expect EPS to be 2 in 2019-2020.


90 yuan, referring to the estimated level of comparable companies, considering the company as the leader in the vehicle sector, giving the company 10-11 times PE in 2019, corresponding to a reasonable value range of 25.


49 yuan, corresponding to 1 PB.


38 times, maintain the “previous market” rating.

risk warning.

Risks of reduced demand for automotive terminals; risks of temporary changes in automotive industry policies; risks of new energy vehicles supplementing potential withdrawal; risks of unpredictable supply cuts in core component supply; risks that the company predicts that new model launch plans cannot be achieved;Terminal competition has intensified, and preferential promotions of similar brand products have led to the risk of passive challenge.