Weichai Power (000338) Quarterly Report Comment: Industry Prosperity Overlaps Market Share Increases Performance Continues to Exceed Expectations

Weichai Power (000338) Quarterly Report Comment: Industry Prosperity Overlaps Market Share Increases Performance Continues to Exceed Expectations

Key points of the report Description Weichai Power released the 2019 first quarter report, and achieved operating income of 452 in Q1 2019.

1 ‰, an increase of 15 in ten years.

3%; net profit attributable to mother is 25.

90,000 yuan, an increase of 35 in ten years.

0%.

The event comment benefited from the industry’s high business climate and rising market share. The company’s first quarter performance maintained high growth and continued to exceed expectations.

The heavy-duty truck industry in 2019Q1 is still at a high level of prosperity, basically flat at the high base in the same period last year, and the market share and profitability of the restructured company’s various businesses have continued to increase: 2019Q1’s engine business (parent company’s revenue) revenue 128.

$ 2.5 billion.

8%, Shaanxi Automobile Group Q1 sales of 4.

950,000 vehicles, an annual increase of 7.

3%, both faster than the heavy truck industry.

Growth of 6%; Net profit of the engine in the first quarter of 2019 (net profit from parent company-net investment income) 21.

10,000 yuan, an increase of 53 in ten years.

4%, profitability continued to improve.

In the first quarter, KION’s revenue and net profit growth accelerated.

Against the backdrop of the decline in the global forklift market, KION achieved operating revenue of 2.1 billion euros in the first quarter of 2019, an increase of 13% and a growth rate of approximately 4% in 2018.
.

There was a significant increase of 5%, and orders increased by 12.

4% to ensure subsequent stable growth.

As adjusted EBIT increased, PPA projects and financial expenses decreased, KION Q1 achieved net profit attributable to its mother.

 9.3 billion, up from 35 previously.

0%.

Looking forward to 2019, the company’s engine segment revenue and profit potential will remain upward.

In terms of heavy trucks, infrastructure development and environmental protection upgrades are expected. In 2019, heavy truck industry sales are expected to exceed 1 million vehicles. The increase in FAW Changchun and Sinotruk’s supporting investment is expected to drive the company’s market share.

In the non-road sector, excavator equipment is expected to become a brand-new increase. Road rollers and bulldozers 成都桑拿网 will increase market share, and loaders will maintain leading volume, and overall sales are expected to increase.

In terms of net profit, we will reduce the increase in production capacity due to sales growth, and gradually upgrade the profitability brought about by product upgrades.

Actively reserve new energy technologies and steadily advance the layout of fuel cells.

The company has cooperated with Furse, Bosch, Ballard, and currently holds 19 shares in Ballard.

9% is committed to mastering core technologies and replacing advantages in the future development of China’s fuel cell industry.

Investment suggestion: stable budget + upward market share, heavy truck engine business steadily rising, non-road business ushered in a heavy volume period, and engine segment profits increased; in the long run, the company’s overseas business accelerates integration and actively deploys new energy.

From an estimation perspective, as the company’s profitability continues to improve and its transition is weakening, the PB hub is trying to move up. It is expected that the company’s EPS for 2019-2021 will be 1.

15.1.

23, 1.

30, corresponding to PE.

5,9.

8,9.

Three times, maintaining the “buy” rating risk tips: 1.

Macroeconomic growth was lower than expected, and heavy truck sales were under pressure; 2.
The implementation time of China VI emission standards was lower than expected.