Yinlun Shares (002126) 2018 Annual Report Comments: Cost-reduction and Efficiency Improvement Reform Expects Restructuring Competitive Advantage

Yinlun Shares (002126) 2018 Annual Report Comments: Cost-reduction and Efficiency Improvement Reform Expects Restructuring Competitive Advantage
Event: The company released its 2018 annual report and gradually realized revenue of 50.19 trillion, ten years +16.1%, realizing net profit attributable to mother 3.49 trillion, +12 for ten years.3%, realizing net profit deduction for non-attribution3.4.0 billion, +3 per year.8%.Proposed dividend of 0.5 yuan (including tax), the dividend rate is about 0.6%. The performance was basically in line with expectations. The downside of passenger cars and the increase in profit disturbances dragged down performance.In 18Q4, the profit for the single quarter was zero.6.5 billion, at least -7.6%, mainly due to the 16% of the wholesale wholesale price of passenger cars dragged down the gross profit structure of the product, bearing 8 million Sino-US trade war tariffs, rising stainless steel prices and intertemporal income adjustment.The gross profit margin end is mainly affected by the increase in the percentage of products that are processed by the exhaust gas, which drags down the structure, and the position of the increased gross profit margin of the exhaust gas treatment is 10 pct.The company’s commercial vehicle and construction machinery heat exchange bases still achieved solid revenue growth in 2018, and it is expected to continue to stabilize in 2019.The development of passenger car heat exchange customers and ASP enhancement continued, but considering that the sales volume of passenger cars at the wholesale end in 2019 is expected to be in place.9%, we are cautious about the company’s passenger car business. In 2019, we will focus on the management reform of reducing costs and increasing efficiency of the company, because this is the key to restructuring the cost competitiveness of the company.In the industry under pressure, more attention should be paid to internal work. Cost control determines the company’s long-term revenue and profit margins.From the perspective of profit efficiency performance such as ROE and turnover rate, Yinlun still has room for improvement. We believe that the increase in revenue is not a determining factor for the company’s long-term forecast. For general-purpose components, it should be more about cost competition, improve operating efficiency, and profitability.effectiveness.Fortunately, the company’s management has upgraded the management reform of cost reduction and efficiency to the company’s core strategic position, learned from Weichai and Danaher’s corporate management experience, and developed the YBS management system. The change in operating efficiency of Yinlun in 2019 is worth looking forward to. Economic 成都桑拿网 progress stabilized, passenger cars turned positive in 19Q2, and the company’s profitability is expected to improve with the recovery of the industry.Looking forward to the recovery of the ride-hailing industry, improving the company’s revenue and profit, and also expecting the company’s customers in the field of new energy thermal management to continue to make breakthroughs. Investment rating: It is expected that the company’s net profit attributable to the parent in 2019-2021 will be 3 respectively.85/4.29/4.980,000 yuan, EPS is 0.48/0.54/0.62 yuan, PE is 18.8/16.8/14.5x, maintain “Buy” rating. Risk warning: Macroeconomics is less than expected; passenger car sales are less than expected