Weichai Power (000338): Quarterly Report Exceeds Expectations, Heavy Truck Leader Continues to Outperform Industry

Event: The company released a quarterly report for 19 years and achieved revenue of 452.

1 ‰, an increase of 15 in ten years.

3%, net profit attributable to mother 25.

90,000 yuan, an increase of 35 in ten years.

0%, net of non-attributed net profit of 24.

500 million, an increase of 23 in ten years.

1%.

Opinion: The sales volume of the heavy truck industry in the first quarter far exceeded expectations, and Weichai has benefited significantly.

At the end of last year, there were a lot of voices in the market that heavy trucks would be replaced this year. The annual sales of heavy trucks may replace 900,000-950,000 vehicles. In addition to the high base in the first half of last year, the market was worried that the sales of heavy trucks would decrease by 20%the above.

But the final actual result is that the sales volume of heavy trucks in the first quarter of this year was 32.

50,000 vehicles, an increase of 0 in ten years.

6%, (January-March ten-year growth rates were -9.

9%, 4.

3%, 7.

1%) is far better than the -20% expectation, and Weichai has benefited significantly.

The largest source of profit The parent company’s revenue increased rapidly.

The parent company’s first quarter revenue was 128.

1 billion, an annual growth of 25.

8%; net profit is 21.

400 million, an annual increase of 37.

5%.

Benefited from the boom of heavy trucks, but also benefited from the continuous growth of the construction machinery industry (extractor sales increased in the first quarter).

5%, loader sales increase by 7 per year.

4%).

Weichai’s supporting heavy trucks accelerate, and the market share of heavy truck engines will continue to increase.

Following Weichai Engine ‘s heavy truck light truck, in the announcement of the 318th batch of new vehicle product announcements issued by the Ministry of Industry and Information Technology, a heavy truck tractor equipped with Weichai Engine appeared, and this product is Shandeka ‘s high-end brand.

By entering the supporting system of Sinotruk, the probability of Weichai heavy truck engine market share will further increase in the future.

The defense of the blue sky continued to advance, supplemented + restricted travel accelerated national triple card replacement.

The national three standard heavy trucks are gradually scheduled to be embargoed in certain regions. The national three heavy truck scrap subsidies have been introduced one after another to accelerate the replacement and replacement of heavy trucks, which will effectively support sales this year and next.

Through the calculation of the inventory, we maintain the truck’s forecast that the sales volume of the heavy truck industry in 19 years will exceed 1 million. It is difficult for the heavy truck industry to experience a cliff-like decline in market concerns.

Strategic layout of fuel cells.

Weichai has a stake in Ballard, the world’s leading hydrogen fuel cell 重庆桑拿 company, with a 19% stake.

9%, the two agreed to set up a joint venture in Shandong to jointly develop and produce hydrogen fuel cell power system products. The joint venture will receive Ballard’s next-generation LCS technology transfer for $ 90 million.

With the promotion of hydrogen energy policies and regulations, Weichai Power’s advance layout will benefit the company a lot.

Investment suggestion and rating: As the sales volume of the company’s related products grows more than expected, the company’s net profit attributable to the mother will be raised to 95 in 2019-2021.

5 billion, 106.

600 million and 119.

300 million (the United Nations is expected to be 91.8 billion, 98.

700 million, 103.

(300 million) P / E ratios are 10 times, 9 times, and 8 times.

Maintaining a 13X target PE for 19 years, corresponding to a target price from 15.

00 yuan increased to 15.

60 yuan, maintain “Buy” rating.

Risk Warning: Distorted changes in social transportation structure, product sales fall short of expectations