Home kkgznjddSailun Tire (601058): Performance in line with expectations 19Q1 Continuous high-growth capacity expansion drives the company into the fast track

Sailun Tire (601058): Performance in line with expectations 19Q1 Continuous high-growth capacity expansion drives the company into the fast track

Sailun Tire (601058): Performance in line with expectations 19Q1 Continuous high-growth capacity expansion drives the company into the fast track of development
Company announcement: The company released its 2018 annual report and achieved operating income of 136 in 2018.8.5 billion (0% YoY).88%), net profit attributable to mother 6.6.8 billion (+102 compared to the same period last year).54%), of which the fourth quarter operating income was 34.10,000 yuan (-4% year-on-year.06% quarter-to-quarter.55%), net profit attributable to mother 1.5.1 billion (+ 1% year-on-year.58% in the second quarter.51%).The company’s 2018 profit distribution plan is to distribute a cash dividend of 0 to all shareholders for every 10 shares.5 yuan, a total of 1 cash dividend was distributed.3.5 billion.At the same time, the company released the first quarter report of 2019, and achieved operating income of 33 in the first quarter of 2019.6.8 billion (+11.17%, QoQ -0.97%), net profit attributable to mother 1.8.4 billion (+53 compared to the same period last year).03%, +22.02%), and performance was in line with expectations. The 18-year production and sales volume has steadily increased, the gross profit margin has increased rapidly, and profits have increased significantly.In 2018, the company produced 3690 tires.680,000 pieces, sold 3693.930,000 articles, each growing by 3.55%, 3.46%, tire production and sales rose steadily.In 2018, the prices of major raw materials were at a low level. The company’s tire product prices have increased overall compared to 17 years, and have increased by 5 in each of the four quarters.70%, 4.15%, 7.84% and 8.36%, tire profit margins have expanded significantly, gross profit margin is 20.13%, an increase of 3.17 units.The latest ANRPC data show that the output of major natural rubber producing countries in 18 years reached 1214.At the beginning of the year, a new high was set, and the market as a whole is still in a situation of oversupply. It is expected that the price of natural rubber will remain low and volatile.In addition, starting from November 1, 2018, the export tax rebate rate was increased from 9% to 13%, which will increase the company’s 2019 performance. 19Q1 tire price spread widened, cost control increased profits.In the first quarter, the company actively carried out market layout and development. The production load of semi-steel tires in Dongying and Vietnam factories continued to increase.430,000 articles, 936.830,000 articles, with an increase of 2 each year.15%, 8.01%.The price of tire products is increasing by 13 per year.At the same time, the prices of major raw materials continued to decline in the first quarter of 2019, and the purchase prices of natural rubber, synthetic rubber, carbon black, and steel cord fell twice.66%, 0.52%, 14.27%, 4.13%.Expenses during the first quarter10.54%, a decrease of 2 over the same period last year.The 09 averages have a positive impact on the current performance. Vietnam’s production capacity was released smoothly, and new production capacity expanded rapidly.Up to now, the company has an annual production capacity of 5.6 million sets of all-steel tires and 40 million sets of semi-steel tires. It has switched to the development of overseas markets and increased the load of 10 million sets / year semi-steel tire projects of Vietnamese companies.The ownership of the Vietnamese company is close to the origin of the raw materials, and many advantages such as preferential policies and evasion of trade friction are implemented. In order to further expand its competitive advantage in the international market, the company and the American Cooper set up a joint venture factory in Vietnam and invested 19 in the next two years.32 trillion (equivalent to 2.(US $ 800 million) to produce 2.4 million sets of full-steel tires per year. It is expected to be put into production in the first half of 2020. After the project is fully operational, 深圳spa会所 it is expected to achieve an average annual operating income.2.1 billion yuan, net profit 2.2 billion, will significantly increase the performance of listed companies.In 2019, the company added a total of 7 million pieces of semi-steel capacity in Dongying, an increase of 1 in Vietnam.5 The initial off-highway tire production capacity and the release of new production capacity will become the driving force for the company’s growth in the next two years. Repurchases and equity incentives demonstrate consensus confidence.As of the end of 2018, the company’s acquisition of the stock incentive plan has been completed. The stock source is 1.478 million shares repurchased by Ford from the secondary market.4.8 billion.The incentive object of this incentive plan is a total of 306 directors, executives, middle management 北京夜网 personnel and core backbone employees, etc. The grant price of the expenditure stock is 1 yuan per share.The restricted period of the stock plan for this incentive plan is 12 months, 24 months, and 36 months from the date of completion of the shared stock authorization registration. The target of the incentive plan’s three-year return to net profit growth from 2018 to 2020 is:: Based on the 2017 net profit, the net profit reduction in 18-20 years is not less than 50% / 60% / 80%, and the corresponding net profit attributable to the mother is 4.95/5.28/5.9.4 billion.The incentive plan will further stimulate the enthusiasm of leaders and improve operating efficiency, reflecting the company’s confidence in the rapid development of the next three years. Profit forecast and investment grade: Maintain 2019-2020 profit forecast to 8.52, 9.44 trillion, the new 2021 profit forecast is 10.5.6 billion yuan, corresponding to 19-19 EPS is 0.32, 0.35, 0.39 yuan, corresponding to PE 10X, 9X, 8X, maintaining the “overweight” level.