GAC Group (601238) 2019 Interim Report Comments: Performance Meets Expectations Under Self-owned Brand Pressure

GAC Group (601238) 2019 Interim Report Comments: Performance Meets Expectations Under Self-owned Brand Pressure

Core point of view The company Q2 achieved net profit attributable to its mother21.

40,000 yuan (ten years -29.

4%), net profit after deducting non-return to mother 10.

600 million (six years -62.

7%), the company’s own brand is under significant pressure, but the investment income contribution is steady.

Benefiting from the improvement of Japanese interests, the company is still one of the companies with the most certain performance in the rebound of the industry in the second half of the year, and maintains a “Buy” rating.

  Q2 performance was in line with expectations, with independent brands under pressure.

The company achieved operating income of 139 in 19Q2.

8 trillion, 21 on New Year’s Eve.

2%, net profit attributable to mother 21.

40,000 yuan (ten years -29.

4%), net profit after deducting non-return to mother 10.

600 million yuan (-62 per year).

7%); a total of 283 operating income was achieved in the first half of the year.

5 ‰ (at least -23.

8%), achieving net profit return to mother 49.

20,000 yuan (for the whole year -28.

9%).

The company’s non-recurring profits and losses in the first half of the year were mainly 17.

$ 600 million in government grants.

Q2 achieved a gross profit margin of 5.

75%, 12 than Q1.

4% continued downward.

In the first half of the year, GAC Group’s passenger car 都市夜网 business realized bicycle revenue.

10,000 yuan (-9 a year).

2%), bike gross margin 0.

250,000 yuan (one year-87%).

The reason for the sharp deterioration of the company’s gross profit was mainly due to the pressure on the growth of Q2 GAC passenger car sales (-16 per year.

8%).

After making up the investment income, the company’s own brand + group parts business contributed a net loss2.

5 ppm, compared to 2 of Q1.

$ 100 billion profit improvement.

  Guangfeng and Guangben are selling well, contributing to the steady return on investment.

The company’s investment income from joint ventures / associates in the first half of the year was 49.

600 million, at least -3.

0%, +27.

5%.

Among them, Q2 realized investment income of 23.9 ‰, at least -10.

3%, MoM-6.

9%.

In terms of companies, Guangben / Guangfeng / Guang Mitsubishi / Guang Fick achieved sales of 39 respectively.

50,000 / 31.

10,000 / 6.

30,000 / 3.

60,000, at least +16.

4% / + 21.

9% /-16.

6% /-49.

0%.

We estimate that the four major vehicle joint ventures of the company in the first half of the year, Guangben / Guangfeng / Guang Mitsubishi / Guang Fick, respectively achieved net profit of 43.

6 billion / 45.

900 million / 2.

300 million / -9.

0 million yuan, excluding Guang Fike for a net profit of +8.

5% / + 81.

1% /-56.

0%.

Four vehicle companies contributed a total of 41 investment returns.

400 million, +17 a year.

6%, +49.

0%.

  Focusing on AionS and AionLX, new energy sales are expected to raise the company’s expectations.

The AionS high endurance version has a range of 510km, and the power consumption of 100 kilometers has reached industry-leading 13.
.

1kwh / 100km is the first model based on the new electric vehicle platform of GAC passenger cars.

GAC New Energy sold 15,003 vehicles from January to July, an annual increase of 96.

1%, its product Aion S is in the cumulative climbing stage, with sales of 3,406 units in July, ranking second in market segment sales. At present, terminal orders have exceeded 50,000 units, which has great potential for explosion.

  In addition, GAC New Energy launched the second new car of the Aion brand, Aion LX, on August 29. The car has 650 km NEDC endurance and zero acceleration3.

9 seconds super efficient.

Currently, GAC ‘s self-owned brand fuel engines are at the bottom. The launch of new energy explosion models is expected to boost the company’s sales and increase the risk factors assessed by the company: the industry’s sales are not up to expectations;Outstanding descent.

  Investment suggestion: Adjust the company’s 2019/20/21 EPS forecast to 0.

87/0.

96/1.

08 yuan (the original forecast was 0.

90/0.

96/1.

10 yuan), the current Hong Kong stocks benefit 7.
90 construction, corresponding to 2019/20/21 8.
2/7.

4/6.

6 times PE, 11 shares.

73 yuan, corresponding to 13 in 2019/20/21.

5/12.

2/10.

9 times PE.

Benefiting from the improvement of Japanese interests, the company is still one of the companies with the most certain performance in the rebound of the industry in the second half.

Maintain “Buy” rating on GAC Group (A + H shares).