Huayu Automotive (600741): Growth-growth transformation industry advances digital transformation
This report reads: It is expected that the company’s profit growth will continue to be stronger than the industry.
The focus of the company at this stage is to focus on core business, and the focus of the next stage is to promote the company’s digital transformation.
Investment Highlights: Raise target price to 33.
15 yuan to maintain the “overweight” level.
Through the implementation of digital transformation strategy, the company has gradually created a new medium- and long-term growth point.
Maintain the company’s EPS forecast for 2019 to 2021 to 2.
66 yuan, due to the industry inflection point is approaching, based on comparable companies to the company 13 times the 2019 estimate, the target price from 27.
13 yuan increased to 33.
The industry is growing rapidly, and the company’s profit growth will continue to be stronger than the industry.
Benefiting from the good relationship with SAIC Group and the effect of leading companies in parts and components brought by the increase of industry concentration, the company’s 2019 performance growth rate is expected to continue to be a significant industry.
The company continued to optimize its business structure.
In March 2018, the company acquired the remaining 50% equity of Koito’s automotive lights to upgrade the company’s automotive lighting products to visual perception systems; in 杭州夜网论坛 December 2018, it acquired 50% equity of Saks Power. The company’s main business is designing and manufacturing clutches and hydraulicTorque converter and other products; The company sold 50% equity of Shanghai Tianhe in December 2018. The company’s main products are seat belts, airbags, steering wheels and other related components.
Continue to expand intelligent network connectivity, invest in new energy, and promote the company’s digital transformation.
The company’s 24GHz backward millimeter wave radar production in 20181.
70,000 sets; Yanfeng will accelerate the development of domain controllers; Huayu Magna has entered the electric drive supply system of Volkswagen’s global MEB platform.
In 2019, the company will promote the digital transformation around the three professional sectors of intelligent networking, electrification and lightweighting.
Risk reminder: the added risk of profitability brought about by the appreciation of the RMB, and the risk of the decline in the growth rate of the automotive industry.