Fuyao Glass's business in the second half of the year may continue to be under pressure. Neutral rating
20151h net profit strives to constitute the driving force for the development of new material market utilization, with an increase of 16% year-on-year, which is basically in line with expectations. The company achieved a net profit of 1.2 billion in 20151h, with a year-on-year increase of 16%, accounting for about 47% of our annual profit forecast, which is basically in line with expectations; Among them, the operating revenue reached 6.59 billion, with a year-on-year increase of 6.6%, higher than the sales growth rate of 1.5% in the domestic automotive industry; The gross profit margin reached 42.6%, an increase of 0.6 percentage points year-on-year; During the period, the expense ratio (management expenses + sales expenses) was about 15.9%, an increase of 0.3 percentage points year-on-year, mainly due to the company's increased R & D investment and the increased expenditure on the development of American factory projects; The income tax rate of the company was 7.6%, a sharp decrease of 11 percentage points year-on-year. We believe that the main reason is that the income of subsidiaries has not changed much since the beginning, and the tax rate has been reduced from 25% to 15%. The company has confirmed a tax deduction of about 100million yuan
good cost control and the decline in raw material prices have kept the gross profit margin at a high level. In the first half of the year, the gross profit margin of the company reached 42.6%, an increase of 0.6 percentage points year-on-year. In the downward cycle of the automotive industry, the company can still maintain a high gross profit margin. We believe that the main reasons are: 1) the prices of major fuels such as natural gas, as well as the prices of major chemical raw materials such as soda ash and PVB diaphragm, have declined, and there is no oil outflow from the oil return pipe; 2) Effective cost control of the company; 3) The price reduction pressure of downstream OEM manufacturers has not yet been transmitted to component suppliers. However, we expect that as the growth rate of sales in the domestic automotive industry continues to slow down and OEM price reduction pressure begins to transmit to parts suppliers, we believe that the company's gross profit margin will face pressure
in the second half of the year, the company's business may continue to be under pressure. In 2015, affected by the macroeconomic downturn and the continuous downturn in real estate sales, we expect the sales growth rate of the domestic automotive industry to slow down significantly. Among them, we expect the sales growth rate of the passenger car industry to slow down to 4% (implying that the growth rate in the second half of the year is only 2%), which we expect will slow down the growth rate of the company's revenue; In addition, since April this year, major OEM manufacturers including Shanghai Volkswagen, Shanghai General Motors and Beijing Hyundai have set off a wave of price cuts. We believe that from the second half of the year to next year, the pressure of OEM price cuts will gradually be transmitted to upstream parts suppliers, which will put pressure on Fuyao Glass's ASP and gross profit margin
Valuation: maintain the "neutral" rating target price of 16.50 yuan, based on UBS VCAM discounted cash flow model (WACC is 7.4%)Under the internal economic cycle of the global glass () department, due to the construction and design of the universal experimental machine in 2021, China Chengdu Construction Expo will talk with you about new opportunities in the industry in April of 2021.
in 2020, with the outbreak of the global epidemic to the effective control of the prevention and control of the domestic epidemic, great changes have also taken place in the global economic situation, and China is moving forward under the strong strategic deployment of national policies [details]
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