Ningbo Huaxiang (002048) Company Comments: 19-year Performance Exceeds Expectations, 20 Years Expected to Continue

Ningbo Huaxiang (002048) Company Comments: 19-year Performance Exceeds Expectations, 20 Years Expected to Continue

Event: The company released a performance report: In 2019, the company achieved revenue of 173.

15 ppm, an increase of 16 in ten years.

0%; operating profit 15.

27 ppm, an increase of 27 in ten years.

7%; net profit attributable to mother 9.

850,000 yuan, an increase of 34 in ten years.


Event Comment: Thermoforming rapidly climbed + overseas continued to reduce losses, performance exceeded expectations.

In 2019, it will benefit from the continuous production of nine hot-forming production lines of Changchun Huaxiang and the sales of FAW-Volkswagen’s supporting models.

The company achieved revenue of 173.

10,000 yuan, an increase of 16 in ten years.


In addition, the merger of Huaxiang in Germany is expected to further reduce, and the company will realize net profit attributable to its mother.

90,000 yuan, an increase of 34 in ten years.


In the fourth quarter, the company achieved revenue of 5.6 billion yuan, an increase of 33 year-on-year.

0%, an increase of 33 from the previous month.

1%; net profit attributable to mother 3.

20,000 yuan, an increase of 38 in ten years.

6%, an increase of 24 from the previous month.


The thermoforming business is expected to continue to be an advantageous growth point.

Compared with ordinary steels, hot-formed steels can increase the tensile strength by more than 8 times and have higher accuracy.

Thanks to this, hot-formed steel is a better choice for load-bearing structures such as A, B pillars, beams.

However, compared with the overall use of over 15% of overseas auto thermoformed parts, and the use ratio of some models over 30%, domestic use is less than 10%.

In addition, the recent poor results of 25% crash tests of some star models announced by China Insurance Research Institute have aroused widespread concern in the society. We believe that this incident has led to the accelerated penetration of hot-formed steel, and its application has room for expansion and improvement.

At present, the company’s nine hot-formed steel production 杭州桑拿网 lines have achieved mass production, and this area is expected to become the company’s next growth point.

The profit center is steadily rising, and Germany Huaxiang is expected to turn losses into profits.

From 2012 to 2018, if the German Huaxiang was excluded, the company’s revenue and net profit attributable to the mother would be 19 respectively.

1%, 21.

7%, significantly improving the company as a whole.

Beginning in 2016, the company adopted Huaxiang, Germany: 1) the replacement of the original stage; 2) the transfer of technicians from China; 3) the transfer of production plants to manpower to reduce costs by 30%.

Since then, it is expected to decrease initially, to 2 in 2018.

1.7 billion; reduced to zero in the first half of 2019.

5.3 billion, a previous reduction of 38.


We believe that 杭州夜网 the integration of portable management has achieved outstanding results. Among them, the factory plant project has started mass production, and the subsidiary Trim in the United States has entered a new project cycle. Huaxiang in Germany is expected to gradually turn a profit.

Bind Tesla and follow new energy.The main products of the company’s automotive electronics and electrical appliances include rearview mirrors, category controllers, battery pack related, wiring harness conduits, etc.

At present, it has been supporting (or will be) Tesla, Mercedes-Benz, Volkswagen, Audi, Volvo and other OEMs, Ningde Times and other first-tier suppliers.

In addition, the company provides Tesla with intelligent reflectors and ventilation ducts. More products are expected to enter the supporting system in the future.

Investment suggestion: Due to the relatively conservative forecast of the increase in the number of thermoforming packages and overseas loss reduction, we will return the company’s net profit to 10 in 2020 and 2021.


6 increased to 11.

7, 13.

7 trillion, corresponding to EPS 1.

87, 2.

19 yuan / share.

Maintain Air Force target price of 29 yuan, maintain “Buy” rating.

Risk reminders: global economic downturn, intensified trade war, overseas integration, lower than expected car sales, etc.