Cree Electromechanical (603960): The acquisition of Zhongyuan has outstanding effects, and Bosch orders have been continuously confirmed to affect performance

Cree Electromechanical (603960): The acquisition of Zhongyuan has outstanding effects, and Bosch orders have been continuously confirmed to affect performance

Event: The company released its 2018 annual report and achieved operating income in 20185.

830,000 yuan, an increase of 131 in ten years.

51%, net profit attributable to mother 0.

65 ppm, an increase of 32 in ten 武汉夜网论坛 years.


Among them, flexible automation equipment and industrial robot systems achieve operating income3.

1.3 billion, an annual increase of 24.

35%, gross profit margin 35.

72%, basically the same as the same period last year; auto engine parts and components achieved operating income2.

6.9 billion, net profit after deduction of 2425 million.

In 4Q18, the revenue growth rate was 122%, and the net profit growth rate of the mother company was 0.

15%, due to the delayed acceptance of Bosch orders, etc., resulting in faster growth in revenue in the fourth quarter, revenue recognition is expected to be completed in the first half of 19th.

Excessive R & D expenses affect the overall profit level. The gross profit margins of the headquarters and Zhongyuan are basically the same as the previous year, resulting in a significant 成都桑拿网 decline in the overall gross profit margin of the consolidated statements.

On the expense side, the 18-year sales expense ratio is 1.

18%, compared with 1 in the same period last year.

43% down 0.

At 25pct, 12% of the management expense ratio (including R & D expenses) is basically the same as the same period of the previous year, but the absolute value has increased by a contradiction. After 18 years of consolidated statements, the R & D expenses were 0.

3.1 billion, compared with 0 in the same period.

1.1 billion outstanding improvements.

The first is the increase in the R & D costs of the 7 million air conditioners brought about by the merger of Zhongyuan. The second is the increase in R & D personnel at the headquarters and the first attempt of the new Bosch line.

Deeply plowed into the automotive electronics field, with sufficient orders in hand.

In 2018, the company successfully entered Bosch’s global supply chain system, with new subdivision orders for flexible automation equipment and industrial robot systems4.

780,000 yuan, an increase of 1 over 2017.

15 trillion, an increase of 31.

68% of newly signed contracts are mainly focused on new energy automotive electronics (motors, electrical controls, energy recovery, etc.), automotive interiors and other fields.

There are currently about 4 orders in hand.

300 million, the main orders come from Bosch (overseas), UMC, Johnson and other traditional superior customers.

At the same time, the company’s inventory reached 2 at the end of 18.

2.0 billion, excluding the impact of merging public sources, compared to the end of last year1.

There is a growth of 1 billion, which provides a guarantee for the rapid growth of subsequent performance.

Acquired Zhongyuan, cut into Volkswagen’s supply chain and expanded profit channels.

Shanghai Zhongyuan started consolidation in the second quarter and achieved revenue2.

6.9 billion yuan, net profit after deduction of 24.25 million yuan, fulfilled performance commitments.

As one of the main suppliers of Volkswagen Engine Track, Zhongyuan has certain qualification barriers, which translates into the implementation of the national five-liter and national-six emission standards.

Investment advice and rating: The company’s net profit for 2019-2021 is expected to be 1.

10 billion, 1.

5.7 billion and 2.

1.1 billion, corresponding to PE of 39x, 28x, 21x, given the “overweight” rating. Risk reminder: New energy vehicle industry’s development is less than expected; orders received are less than expected