Ningbo Gaofa (603788): 19Q3 profit margin improvement long-term growth logic unchanged

Ningbo Gaofa (603788): 19Q3 profit margin 北京夜网 improvement long-term growth logic unchanged


On October 22, 2019, the company released the third quarter of 2019 report: In the first three quarters of 2019, Ningbo Gaofa achieved operating income6.

58 ‰, a year-on-year decrease of 35.

35%; net profit attributable to mother is 1.

40 ‰, a year-on-year decrease of 32.


In 19Q3, the company’s revenue decline narrowed month-on-month, and the increase in net profit attributable to mothers turned positive.

Looking at the single quarter, the company achieved revenue 2 in 19Q3.

21 ‰, a decrease of 21 per year.

09%, the earlier 19Q2 decline was further narrowed; net profit attributable to mothers was 0.

51 ppm, a 10-year increase2.

26%, compared with 19Q2 -37.

78% year-on-year growth has improved significantly.

In 19Q3, the company’s profitability improved year-on-year, and the expense ratio showed a downward trend during the period.

19Q3 company short-term gross margin +0.

39 pct, +1 ring.

66 pct; net interest rate +5 per second.

32 pct, +1 ring.

88 pct.

During the period, the overall expense ratio was properly controlled, and the same month-on-month ratio showed a downward trend.

The long-term logic of upgrading the company’s customer structure and product structure will not change due to the short-term repetitive impact of the industry.

According to the semi-annual report for 2019, the company’s main products, electronic gearshift manipulators, have obtained supporting qualifications from a number of OEMs including Geely, Great Wall Motors, SAIC Passenger Cars, BYD, Chery, Dongfeng Motors, SAIC Chase, Jiangling Motors, and electronic accelerator pedals.Gaining the qualification of supporting GAC passenger cars, meanwhile, the company passed the potential supplier audit of Changan Mazda, and customers began to make breakthroughs in joint venture brand OEMs.

From manual gearbox manipulators to automatic gearbox manipulators to electronic shifters, the company’s product structure has been continuously upgraded. We judge that the company’s electronic conversion manipulator penetration rate is still improving.

Earnings forecasts and investment advice.

We believe that the automotive industry continues to experience a downturn. As a downstream component company, the company has been affected by the industry. In the long term, the logic of upgrading the company’s customer structure and product structure will remain unchanged.

It is estimated that the company’s net profit attributable to the parent in 2019-2021 will be 2.



56 trillion, EPS is 0.



11 yuan.

With reference to the estimated level of comparable companies and taking into account the company’s growth, it will be given a PE of 17-20 times in 2019, corresponding to a reasonable value range of 14.


60 yuan, maintain the “primary market” rating.

risk warning.

The sales of new models of major customers were lower than expected; the quality risks of new products; and the customer development was lower than expected.