Sinotruk (000951): Strict control of cost and profit continued to improve

Sinotruk (000951): Strict control of cost and profit continued to improve

Sinotruk (000951): Strict control of cost and profit continued to improve

Event Overview The company released its semi-annual report for 2
019 and achieved revenue of 224 in 2019H1.

68 ppm, with a ten-year average of zero.

3%; net profit attributable to mother 6.

400,000 yuan, an increase of 32 in ten years.

3%; net profit after deduction to mother 5.

93 ppm, an increase of 29 in ten years.


By quarter, 2019Q2 achieved revenue of 109.

42 trillion, a ten-year average of 17.

8%; net profit attributable to mother 3.

29 ppm, an increase of 13 years.

5%; net profit after deduction to mother 3.

10,000 yuan, an increase of 9 in ten years.


Analysis and judgment: The decline in demand for engineering vehicles led to a decrease in revenue. In the second quarter, due to the “large tonnage and small standard”, the company’s heavy truck sales in 2019H1 were 7.

750,000 vehicles, ten years ago 2.

86%, slightly worse than the industry’s triple sales.

3% performance, which was mainly affected by changes in downstream demand. The domestic logistics demand maintained a rapid growth in the first half of the year. Sales of tractors and trucks showed stable performance, while construction vehicles, which accounted for a high proportion of the company’s sales, were affected by reduced infrastructure investmentAppears highest.

The decline in sales has caused the company’s revenue in 2019H1 to fall by zero.


By quarter, 2019Q1 / Q2 company revenues increased by 24.

8% / 17 per share.

8%, due to the overall increase in the sales volume of the heavy truck industry in the second quarter; strict inspection of the “large tonnage and small standard” led to the company’s market-leading cement mixer trucks, the dump truck’s license plate was temporarily affected, and the company’s heavy truck sales increased more than the industry average.

The gross profit margin increased and the increase of the expense ratio decreased, and the profitability returned to a historically high level.

47%, an increase of one year.

22pct, of which the gross profit margin in 2019Q2 reached 11.

46%, which has exceeded the company’s gross profit margin level in 2010 when the boom of the last heavy truck was at a high point.

In terms of expense ratio, the sales expense ratio of the company in 2019H1 is 2.

53%, a decline of 0 every year.

29pct, the lowest level in the past 10 years, with an overhead rate of 0.

56%, a decrease of 0 every year.

21pct, financial expense ratio is 0.

39%, a decrease of 0 every year.

05pct, R & D expense ratio is 0.

81%, an annual increase of 0.

19 points, the four expense ratios, excluding R & D, fell across the board, totaling 4.

29%, a decline of 0 per year.

36 points.We judge that the increase in the company’s gross profit margin and the decline in the expense ratio are related to the increase in the cost and cost control of the new appointment.

2019H1 company net profit 3.

88%, profitability restored to historically high levels.

We are optimistic about the sustainability of the heavy-duty truck sector. The “large tonnage and small standard” are short and long. We are optimistic about the company ‘s profit and continue to improve the “blue sky defense” requirement. By the end of 2020, Beijing-Tianjin-Hebei and surrounding areas will be eliminated.The following medium and heavy-duty diesel vehicles are more than 1 million. Currently, there are about 1 million triple-trucks in the country. Emissions upgrades will ensure that the heavy-duty truck segment will continue 苏州夜网论坛 to enjoy a high degree of prosperity until at least 2020.

The impact of the “large tonnage and small standard” incident on dump trucks and cement mixer trucks in the short term, but in the long run, the decline in bicycle capacity will increase the number of vehicles, which will increase the demand for renewal. As a leading market segment manufacturer in the industry, the companyEnterprises will continue to benefit.

At present, Weichai has re-entered the company’s supporting system. We expect Weichai’s WP series engines to gradually replace D series engines based on Steyr platforms, which are backward in technology. The WP series engines have outstanding cost performance advantages.To further enhance the competitiveness of the company’s vehicle products, the company’s profit potential will continue to increase in the long 苏州夜网论坛 run.

Investment suggestion We believe that the high prosperity of the heavy truck segment is still stamina. At the same time, we are optimistic that the company will strengthen its cost management after the new appointment. Weichai will continue to improve the profitability brought by the improvement of vehicle competitiveness after entering the supporting system.

The company’s EPS for 2019-21 is expected to be 1.



25 yuan, corresponding to PE is 8.



7x, the company’s PB has been roughly 1 in the past 5 years.

Between 3x, the company is expected to reach a net asset of 10 by the end of 2019.

20 yuan, according to the historical center given to the company 1.

7 times PB, corresponding to a target price of 17.

34 yuan, for the first time, give “overweight” rating.

Risks indicate that the sales volume of the heavy truck industry is lower than expected; the proportion of sales of engineering vehicles has decreased.