Rimage (603730) quarterly report comments: gross profit restructuring hopes to benefit Tesla domestic
The gross profit margin dropped, and the performance exceeded expectations. On April 28, the company disclosed a quarterly report. In Q1 of 19, the company achieved operating income of 12.
47 trillion, +44 for ten years.
78%, net profit attributable to mother 1.
610,000 yuan, ten years +7.
74%, net profit after deducting non-return to mother 1.
1.7 billion a year -18.
The company achieved operating income of 42 in 2018.
73 ppm, +31 a year.
61%; realized net profit attributable to mother 5.
580,000 yuan, at least -4.
Due to the increase in the proportion of ceiling central controller revenue with reduced gross profit margins and the acquisition of overseas companies with reduced gross profit margins, the company’s gross profit margins increased and replaced, and its performance was lower than our expectations.
The company entered the Tesla supply chain and is expected to benefit from Tesla’s localization in the future; the company completed the acquisition of Motus to consolidate the position of the leading visor.
We expect the company’s EPS for 2019-21 to be approximately 1.
42 yuan, maintaining the “overweight” level.
The gross profit margin of Q1 rebounded month-on-month, and the sales expense ratio increased in Q1 2019, and the company achieved a gross profit margin of 29.
91%, six years -6.
79 points, +5.
8pct, gross profit margin picked up.
The company’s Q1 sales expense ratio is 6.
98%, ten years +1.
05pct, basically due to transportation costs, increased tariffs, and consolidation of Motus; management expense ratio (including research and development costs) 8.
66% every year -0.
51pct, above all, the company has strengthened expense management.
Finance costs 2.
76 ppm, + 32% per year, due to exchange losses on USD assets and increased interest on borrowings, raising financial costs.
Q1 company generated non-recurring income of 44.24 million yuan, mainly investment income and government subsidies.
We believe that the company will gradually take on new orders and gradually mass-produce, the cost control ability will continue to improve, and the company’s gross margin will gradually rise.
The growth rate of gross profit margin decreased in the fourth quarter, and the management and sales expense ratio increased. In the fourth quarter of 2018, the company achieved operating income13.
44 trillion, +44 for ten years.
21%, net profit attributable to mother 1.
13 ‰, at least -22.
The company achieved a gross profit margin of 24.
11% a year -8.3pct, the decrease in gross profit margin was ultimately due to the increase in the proportion of ceiling central controller revenue with reduced gross profit margin and the acquisition of foreign companies with a substitute for gross profit margin.
Company Q4 sales expense ratio 3.
72%, ten years +0.
61pct, basically the shipping and customs booking fees, wage increases and tariffs levied; management expense ratio (including research and development expenses) 11.
53%, ten years +3.
38pct, basically the company increased the acquisition consulting service fee, salary and equity incentive expenses.
Finance expense ratio 1.
成都桑拿网12% every year -0.
71pct, because the dollar assets generate exchange gains, the decline in financial expense ratio breaks.
We will deeply benefit from the domestic substitution megatrend and maintain the “overweight” rating company with the sun visor business as its core business and penetrating the more profitable headrest and ceiling controller businesses, and the products are constantly diversified.
The company strives to continuously increase its domestic market share, and outbound mergers and acquisitions further expand the international market.
The company has entered the supply chain of customers such as Tesla, and is expected to benefit from Tesla’s localization in the future.
Taking into account the reduction in the gross profit margin after the company’s acquisition, we expect the company to return to its parent net profit of about 6 in 2019-20.
2.7 billion (down by about 15.
2% / 16%), the net profit attributable to the mother for 21 years is 9.
At 94 ppm, the EPS is approximately 1.
42 yuan, about 15XPE in 2019 for comparable companies in the industry
The 17-year PE estimates that the target price range will be adjusted to 26.
56 yuan, maintain “overweight” rating.
Risk warning: Sino-US trade frictions are widening, and the company’s overseas market expansion is less than expected.