Depth-Company-Kaizhong Co., Ltd. (603037): New products such as electric control and rubber wheels for Q3 results

Depth * Company * Kaizhong Co., Ltd. (603037): New products such as electric control and rubber wheels for Q3 results have broad prospect

The company released the third quarter report of 2019, and the first three quarters achieved a total of operating income3.

700 million, down 10 a year.

2%; net profit attributable to shareholders of the listed company is 0.

74 million, down 27 each year.

9%; budget benefit 0.

70 yuan.

Q3 achieved operating income1.

100 million, down 9 a year.

1%; net profit attributable to shareholders of the listed company is 0.

1.4 billion, a year-on-year decrease of 39.

6%, lower than our expectations.

Many products of the company continue to expand new customers and orders, and the performance is expected to stabilize and rebound.

In addition, the company develops new products such as electronic control systems and rubber wheels, which have promising development prospects.

We expect the company’s estimated earnings for 2019-2021 to be zero.

98 yuan, 1.

27 yuan and 1.

63 yuan, maintain BUY rating.

  Key points of official ratings The auto market is 南宁桑拿 down, and short-term performance is under pressure.

The company’s customers basically include domestic mainstream auto companies. The impact of the downturn in the automobile market on the company has broken through. The company achieved revenue in the first three quarters3.

700 million, down 10 a year.


Gross profit margin 37.

1%, a decline of 6 per year.

1pct is expected to be mainly due to the decline in the scale of revenue and the price reduction of some products.

In terms of expenses, selling expenses decreased by 8.

7%, basically synchronized with income; management expenses increased by 1.

7%, R & D expenses increased by 12.

7%, which is expected to increase as a result of increased R & D investment in new materials; financial expenses decreased by 16.

6%, mainly due to the increase in interest rate income; four expense ratios of 17.

3%, an increase of 1 over the previous period.

7 points.

Revenue and gross profit margins fell, but expense ratios rose, and net profit fell by 27.


Q3 revenue fell 9% year-on-year.

1%, gross margin decreased by 10.

2pct (expected to be mainly affected by one-time costs, subsequent expected rebound), sales, research and development costs increased by 6.

5%, 20.

8%, management and financial expenses decreased by 7.2%, 97.

7%, net profit attributable to mothers decreased by 39.


A variety of products continue to develop, and performance is expected to stabilize and rebound.

In terms of buffer blocks, the company strives to realize the advantages of cost and service, and gradually increases the domestic city’s share; it transforms the company to develop overseas markets, and the development prospect is promising.

In terms of shock-absorbing components, the company has won a number of projects including Audi (Germany), FAW-Volkswagen, SAIC-Volkswagen, Changan Ford and achieved breakthroughs in Korean projects.

In terms of lightweight pedals, in addition to SAIC, Geely, Chery and Weimar pedals have been supplied in batches, and have received project orders from BAIC New Energy and Jiangling New Energy.

Customers and orders for this type of product continue to develop, with promising development prospects.

In 2019, the sales volume of some customers declined, and new projects were put into mass production, which had a certain impact on performance; however, sales volume recovered and new projects were gradually mass-produced.

New products such as electronic control systems and rubber wheels have broad prospects.

The company’s existing product bike value indicator (bike value buffer block is about 40 yuan, lightweight pedal 50-200 yuan), the expansion of the product line significantly enhances the market space and brings performance flexibility to the company.

The development of new products for the company’s electronic control system is progressing smoothly, and mass production in the future is expected to promote high-speed growth of the company’s performance.

In addition, the polyurethane rubber wheel business has a broad market space and higher profit margins. The company has obtained an exclusive authorization from Covestro. It is expected to develop vigorously in the future and become an important growth point of performance.

  It is estimated that due to the continuous growth of domestic automobile sales, we have lowered our profit forecast. The company’s 2019-2021 earnings are expected to be 0.

98 yuan, 1.

27 yuan and 1.

63 yuan, the existing business continues to develop, new electronic control system products are expected to bring breakthrough performance flexibility, maintain a BUY rating.

  The main risks faced by the rating are 1) the continued decline in car sales; 2) the shock absorption and pedal business development is worse than expected.