Sanhua Intelligent Control (002050): Q4 Performance Exceeds Expectations, Product Structure Continuously Optimized

Sanhua Intelligent Control (002050): Q4 Performance Exceeds Expectations, Product Structure Continuously Optimized

Key points of investment: Q4 appliances and auto zero business accelerated, operating performance exceeded expectations.

Sanhua Intelligent Control released the 2019 performance report, and the company achieved revenue of 113 in 2019.

2 ‰, an increase of 4 in ten years.

5%, net profit 14.

2 ‰, an increase of 9 in ten years.

9%, EPS is 0.

52 yuan, ROE16.

1%, a year to raise 0.

5pc; in the fourth quarter, it achieved revenue of 27 trillion, an annual increase of 5%, and a net profit of 3.

60,000 yuan, an increase of 35 in ten years.

5%, EPS is 0.

14 yuan, exceeding market expectations.

The initial expectation was the continuous optimization of product structure. The high gross profit business represented by electronic expansion valves, commercial refrigeration components and thermal management components of new energy vehicles continued to grow rapidly. Q4’s single quarter net profit reached 13.

5%, an increase of 2 per year.


Based on our performance estimates, we expect 2019 auto zero net profit3.

200 million, 23% per year, of which Q4 net profit is 0.

800 million US dollars, an annual increase of 60%, home appliances 1.1 billion US dollars, an annual increase of 7%, Q4 net profit2.

800 million, an annual increase of 31%.

  The prosperity of the refrigeration business is improving quarter by quarter, and new energy efficiency will become a catalyst in 2020.

Since the second half of 2018武汉桑拿, the domestic air-conditioning industry has experienced a downturn in the economy for four quarters, and in Q3 of 2019, it has gradually entered a boom recovery channel, and the overall output of the Q4 industry is zero.

26%, the growth rate increased by 0 from Q3.

95 points. In terms of sales volume, domestic sales rebounded rapidly in Q4, and the growth rate increased to 13.

81%, distorting the continued growth trend of domestic sales.

Internal sales of electronic expansion valves, stop valves and four-way valves increased by 14 in the fourth quarter of 2019.

58%, 18.

65% and above 5.

01%, compared with the third quarter of the previous quarter, it has continued to improve to a different extent; benefiting from the continued increase in the penetration rate of inverter air conditioners, electronic expansion valves replaced zero in flat domestic sales of air conditioners in 2019.

In 7% of cases, the trend increased by 10.


Looking forward to 2020, the new standard for energy efficiency of air conditioners will gradually phase out the existing fixed-frequency and variable-frequency three-level energy-efficient air conditioners, with a phase-out rate of 45%.

  Large-scale equity incentives stabilize the core talent team.

The company’s latest announcement intends to grant 12.42 million additional shares to 959 incentive objects. The shares will be repurchased from the secondary market at a grant price of 9.

85 yuan per share. The performance evaluation requires that the ROE is not less than 17% in 2020-2022. It is estimated that the management expenses amortized due to distribution incentives from 2020 to 2023 will be 5989.

20 thousand, 4106.

880,000, 1950.

770,000 and 273.

79 thousand.The company’s equity incentive plan covers the company9.

6% of employees, effectively achieve the stability of the company’s core talent team, fully mobilize the work enthusiasm of middle-level employees.

  Home appliance + car performance resonance, maintain overweight rating.

In 2020, the new energy efficiency standard of the air-conditioning industry will be upgraded to accelerate the conversion rate of the converter, which will drive the sales of the company’s electronic expansion valves and other refrigeration core components. In 2020, the electronic expansion valve will reach 50%; meanwhile, the auto zero business will be put into production through Tesla ChinaIn the early stage, following the transformation of global front-line OEMs such as BMW and Volkswagen, thermal management parts orders will enter centralized delivery in 2020, and the revenue side will continue to maintain rapid growth. In 2020, the company will usher in the performance resonance of the two businesses of home appliances and automobiles.

We maintain the company’s profit forecast for 2019-2021, and the net profit attributable to the mother is 14 respectively.

600 million, 17.

500 million and 21.

0 ppm, an increase of 12 each year.

9%, 20.

1% and 20%, the corresponding EPS is 0.

53 yuan / share, 0.

63 yuan / share and 0.

76 yuan / share, corresponding to a 39 times, 33 times and 27 times reduction in dynamic market surplus, maintaining the “overweight” level.