Top Group (601689): 3Q profit improvement will obviously benefit from Tesla domestic

Top Group (601689): 3Q profit improvement will obviously benefit from Tesla domestic

The core view performance is in line with expectations.

The company achieved operating income of 37 in the first three quarters.

66 ‰, 15 years ago.

5%, net profit attributable to mother 3.

3.7 billion, previously 45 per second.

3%, net of non-attributed net profit 3.

15 ‰, an average of 43 per ten years.

6%, EPS is 0.

32 yuan.

Net profit growth in the first three quarters was lower than revenue growth mainly due to the decline in gross profit margin and the increase in expense ratio during the period.

  Gross profit margin improved in the third quarter, and cash flow from operating activities performed well.

The company’s gross profit margin for the first three quarters was 26.

1%, a decrease of 1 per year.

Eight averages, of which the gross profit margin in the third quarter was 26.

4%, down by 1 every year.

5 digits, up by 0 from the previous month.

The 6 averages are expected to be mainly due to a quarter-on-quarter improvement in revenue.

Period expenses cost 15.

4%, an increase of 2 per year.

The total of 6; the management expense ratio (including research and development expenses) is 10.

4%, an increase of 2 per year.

2 units, of which R & D costs increase by 9 per year.

4%, R & D expense ratio increased by 1 in ten 四川耍耍网 years.

4 up to 6.


Net cash flow from operating activities 7.

7.4 billion, a 104-year growth of 104.

7%, performing well.

The ending inventory was 11.

400,000 yuan, down 6 from the beginning of the period.


  The third quarter results have improved significantly, and the company will benefit from the commissioning of Tesla’s Shanghai plant.

Profit in the third quarter1.

2.7 billion, an increase of 30 from the previous month.

4%, mainly due to the improvement in revenue and gross profit margin, the third quarter performance improved significantly, it is expected mainly due to the improvement in downstream customer production and sales, of which Geely Automobile sales in the third quarter decreased by 17.

2%, narrowing the excess by 7.

The four averages have improved significantly. It is expected that Geely’s sales in the fourth quarter are expected to continue to improve.

The company’s lightweight chassis products have entered the supply chain of Tesla, BYD and other leading companies in new energy vehicles. Tesla’s Shanghai plant has entered the trial production stage and will be officially put into production. It is expected to drive the company’s supporting volume and profit improvement in the future.In the company’s automotive electronics business, a number of electronic vacuum pump products have been mass-produced and actively developed new automotive electronics products, with long-term development.

With the overall stabilization of the industry, the company’s operating performance in the fourth quarter is expected to improve further.

  Financial forecast and investment advice: slightly adjust the expense ratio, and predict that the returns for 2019-2021 will be 0.

49, 0.

60, 0.

68 yuan (previous forecast was 0.

54, 0.

63, 0.

70 yuan), comparable companies are parts and automotive electronics related companies, comparable companies 19 years PE average valuation 24 times, the corresponding target price is 11.

76 yuan, maintain BUY rating.

  Risk warning: NVH orders exceed expectations, electronic vacuum pumps, lightweight chassis sales are gradually expected, and price cuts on components affect profitability.