Month: March 2020

Foton Motor (600166): Abandoning the burden and going light, focusing on the main business
Event: The company released the 2019 first quarter report.Realized operating income of 141.4.4 billion, an annual increase of 50.27%; net profit attributable to mother 0.80,000 yuan, an increase of 113 in ten years.28%. The sales volume is fully blooming, and the reform on the income side has achieved results.Foton Motor’s sales in the first quarter were 13.110,000, an increase 北京夜生活网 of 11 in ten years.8%.The financial business exceeded 8 billion, with an annual growth rate of 18%.Specifically, light truck sales were 8.20,000, an annual increase of 16%; sales of medium and heavy trucks 3.140,000, an increase of 9 in ten years.The sales volume of large and medium passenger vehicles was 2813, an increase of 177% year-on-year, and the market share was the second (2485 vehicle sales, an increase of 450%); the sales of new energy vehicles was 2,575, an increase of 353%.Benefiting from the significant improvement in sales volume, the company’s commercial vehicles have returned to the top position in sales volume. The reform effect of focusing on the main business has been shown. The growth rate of the main revenue side has increased by 50%, with an increase of nearly 4.7 billion. The increase mainly comes fromSignificant increase in bus sales.From the historical perspective, the second quarter is the peak season for commercial vehicle sales, supplementing the rush-installation effect brought by the implementation of National Sixth Phase A in some regions in July 2019. The main industry still has gradual growth momentum. The profit side recovered significantly, and the gross profit margin and period rate were optimized.The company turned its net profit back to profit in the first quarter, recording 0.800 million, an annual increase of 6.8 billion.The main reasons for the increase in performance were: 1. The increase in light truck sales and the optimization of the sales structure of construction machinery increased the gross profit, and the profit increased by 200 million; 2. The completion of delivery of Beijing bus orders affected the increase in profit 3.700 million; 3, the transfer of 67% stake in Bao Wo increased profit 4.700 million. From the perspective of gross profit margin, the gross profit margin in the first quarter was 13.5%, a significant increase of 5 from the previous quarter.7 pct, an increase of 0 every year.2 pct. The scale effect of commercial vehicles has increased the company’s gross profit to the normal level in the past. In the long term, the company is at the inflection point, which will reduce the company’s cost reduction and increase efficiency. There is still room for growth in the subsequent gross profit margin. The rate during the first quarter was 13.4% had previously fallen significantly 7.9 points.Specifically, the sales expense ratio decreased by 3.4pct, the management expense ratio decreased by 3 pct, and the R & D expense ratio decreased by 0.2 pct, the financial expense ratio decreased by 1.2 pct. The significant decrease in the company’s expense ratio was mainly due to the replacement of Bao Wo assets and the enhancement of the company’s management capabilities. The lowest valley of Baowo has passed, and the main performance has begun to be realized.Baowo deserves attention in two aspects. In the first quarter, 67% of Baowo’s distribution was transferred to obtain non-recurring benefits.9 billion.2. The investment income of joint ventures and joint ventures is -600 million. The operating conditions of Foton Daimler and Foton Cummins have improved. Negative investment income is due to the first quarter of Bao Wo.About 100 million investment income. It is said that Baowo ‘s current major shareholder, Shenzhou UCAR, transferred 67% of Changsheng Industrial’s time-share announcement. In January, Baowo’s revenue was 1.2 billion, net profit was -19 billion, and its net asset assessment was only 1.9 billion.When the target was transferred to Changsheng Industrial, the target net assets were 59.300 million. During this period, Baowo’s production and operation showed no obvious abnormalities.In our opinion, the relatively cautious assessment of Baowo ‘s assets and accruals by Baosteel this time is the main reason for the improvement of Baowo ‘s first quarter performance. It is expected that Baowo will enter the normal performance platform in the second quarter.Wo can greatly reduce losses and even turn losses into profits. The transfer of 67% stake in Baowo affects the profit to increase 4 every year.7 ppm (equity return from equity + 33% equity return from 19 years to 100% equity return from 19 years), the actual performance increase is 6.800 million, so we expect the increase in main performance to be between 200 million and 300 million, the main business performance has begun to gradually realize, the turning point in performance. Holding high-quality assets, it is a leader in fuel cell sales.The company has rich experience in cooperation with international commercial vehicle giants. Foton Daimler, Foton Cummins, Foton ZF and other assets are all high-quality assets of Sino-foreign joint ventures. At present, the company’s products are prominent in heavy trucks, engines, and the largest area, ensuring sales.And profit cashed.The company has deeply cultivated the layout of hydrogen fuel cells and has a bright future.Hydrogen fuel cells are an important development trend in the field of new energy. The early layout of Foton began in 2006, and the product order was continuously updated. Recently, it has received another large order of 49 Ouhui hydrogen fuel buses and 100 Ou Marco hydrogen fuel logistics vehicles. The reality is thatThe strongest power in the field of fuel cells.Foton, Yihuatong, Toyota and other recent strategic cooperation agreements are dedicated to the promotion of hydrogen transportation in the Winter Olympics and the Beijing-Tianjin-Hebei region. The advent of a new stage of hydrogen energy development will create new growth points for the company’s performance. Risk reminder: The impact of the decline in new energy subsidies, Bao Wo sales are less than expected

Midea Group (000333): Where does Midea T + 3 benefit?
T + 3 is often regarded as the act of accelerating turnover efficiency and reducing inventory. Some market opinions suggest that the turnover efficiency has not been significantly improved under the implementation of T + 3, especially in the manifestation of some financial indicators.We think that understanding T + 3 from the perspective of statements alone is slightly 深圳桑拿网 insufficient. In this article, we will discuss with investors the following three questions to find out where the US T + 3 benefits are reflected. Checking Little Swan: How to see the true effect of T + 3?Looking back at the promotion process of T + 3 in Midea Group, it was first proposed by Little Swan in 2014. It is also because of the success of this model in Little Swan that it was eventually gradually promoted in other business groups of the Group.From the perspective of inventory, in the initial stage of implementing T + 3, the inventory turnover rate has increased significantly, and the turnover efficiency has declined since 2016.The change in the proportion of funds received in advance was an upward trend in the initial implementation of T + 3, and a turning point occurred in 2016. Considering the increase in scale, changes in the payment policy may have caused this change.There are some other indicators, such as the account receivable turnover rate and the sales expense rate, which do not reflect the scale effect brought by the increase in conversion income. The improvement of T + 3 for these subjects cannot be directly reflected in the annual report.Therefore, the T + 3 advantage that can be achieved from the perspective of financial indicators is limited. We may need to pay more attention to whether the implementation of the strategy is reflected on the income side and performance side.We think that the interpretation of T + 3 may need to be viewed from the perspective of the terminal market, rather than simply the interpretation of repeated statements. The reaction speed of T + 3 is one of its biggest advantages in the overall terminal competition, which is most obvious.Reflecting its effect is the increase in the company’s market share. Can the air conditioner do T + 3?The market often attributes part of the success of Little Swan to the characteristics of the washing machine itself, and there are some doubts about whether T + 3 can succeed in replacing the air conditioner. The core purpose of the US Department to promote the T + 3 reform is actually to target the traditional air-conditioning company’s “off-season payment mode” model.But the situation is changing now: 1) The demand for air conditioners is ironing, that is, the replacement is gradually rather than strengthening, and the proportion of air conditioner sales in the peak season is gradually decreasing, and the festival promotion brought by “artificial festival”The point in time provides predictability for sales volume; 2) the end consumer’s demand is the real demand, and the “playing money and pressing goods” model involves more the game between the company and the channel.T + 3 mainly evaluates terminal mobile sales, which will lead to increased attention to the core needs of consumers, eventually forcing agents to further improve their ability to grasp the market. How is T + 3 doing in the US at this stage?Midea ‘s expectation is to gradually spread T + 3 to all categories of products under the group. Let ‘s first look at some of the main indicators analyzed earlier, such as inventory turnover rate, accounts receivable turnover rate, etc. The basic trend is similar to that of us in Little SwanSimilar trends were seen, with no significant increase in efficiency or reduction in costs.Therefore, the improvement in the operational efficiency of the United States that we are looking for is mainly reflected in the acquisition of market share in the initial stage, and the improvement in the cost side may not be seen for a short time.The industry opportunities for raw material decline are not sustainable, and a longer-term strategy is needed in the future. Investment suggestion: Midea actively promotes channel transformation, strengthens the company’s retail capabilities, gradually transforms the multi-brand system, gradually strengthens the brand effect, and strengthens the synergy with KUKA and Toshiba. We maintain the company’s net profit for the year 19-21 is 233.85, 266.30, 294.36 ppm, corresponding to a dynamic evaluation of 15.64x, 13.73x, 12.43x, maintain “Buy” rating. Risk warning: exchange rate, raw material price fluctuation risk; multi-brand sales are not as expected.