China Automobile Research (601965) Quarterly Report Review 2019: Profitability of Industrialized Business Improves in Q1 2019

China Automobile Research (601965) Quarterly Report Review 2019: Profitability of Industrialized Business Improves in Q1 2019

Report guide for 2019Q1 net profit +8 for half a year.


Still optimistic about the company, highly recommended!

Key points of investment China Automotive Research Corporation’s first quarterly report 2019 core data The first quarter of 2019 consolidated statement operating income of 5 billion, gradually replacing 22.

33%, net profit attributable to mother 0.

94 ppm, an increase of ten years8.

43%, net profit after deduction after returning to mothers increased by 4.

73%, EPS is 0.

1 Yuan.

In the first quarter, the profitability of industrialization improved, and the growth of the inspection business was slightly higher than expected. According to the report segmentation, the revenue of industrialization business in the first quarter of 2019 was about 2.

9 ‰, with a ten-year average growth rate of 32% (mainly the growth rate of modified car business), but the gross profit margin is about 9.

9%, an improvement of about 3 per year.

9 averages, net profit achieved 0.

11 ‰ (an estimate of 300 ‰ in the same period last year), further indicating that the company’s role in reducing costs and increasing efficiency of industrialized businesses is reflected.

The inspection business is mainly reflected in the size of the parent company and its operating income2.

8,000 yuan, ten years average 3.

26%, net profit is 0.

830,000 yuan, a ten-year average of 7.

8%, first of all, is the testing business, and although some of the advance receipts have been recognized as revenue, the remaining part still meets the criteria for revenue recognition because the project is still in progress.

We are still optimistic about the 2019 annual results. The number of new car announcements and advance receipts are the two leading indicators of the company’s performance. According to the data compiled by the Ministry of Industry and Information Technology, the number of new car announcements for commercial vehicles in the first quarter of 2019 increased by 153%, ushering in a rapid recovery period.

Passenger cars increased by 40% in the first half of 2019Q1, continuing a good trend.

Parent company’s advance payment at the end of 20182.

4 ppm (previously + 59%), the highest annual growth rate since 2014.

According to the previous year’s convention, an increase in Q4 advance receipts means an increase in orders in the second year, and Q1-Q3 advance receipts in the second year gradually decrease as income is gradually recognized.

In 2019Q1, the parent company’s advance receipts decreased by 1 trillion compared with 2018Q4, which means that some orders for the Q1 inspection business have 上海夜网论坛 been produced, but the remaining funds are recognized as revenue that needs to be realized in the next quarter.

The company has ushered in a new round of growth under the catalysis of National Six, and continues to recommend the core reasons for optimistic about the company’s future development: 1) The volume and price of the testing business will increase with the support of National Six, which will help the rapid growth of performance in 2019-2020.

2) The wind tunnel and intelligent network testing base will become the company’s new long-term growth point.

3) Continuously promote system reform and innovation, and gradually improve the company’s core competitiveness.

EPS is expected to be 0 in 2019-2021.



78 yuan, corresponding to 15 for PE.



5 times.

Risk reminder: new entrants have been announced to compulsory inspection related certification qualifications; labor costs rose more than expected