Halma Technology (002595): Strong domestic demand slows exports and suppresses profitability

Halma Technology (002595): Strong domestic demand slows exports and suppresses profitability
Report Summary: Events: The company released the first half of 2019 report, and the company achieved operating income19.69 ppm, an increase of 14 in ten years.17%, net profit attributable to mothers3.75 ppm, an increase of ten years6.34%. The previous high base and slowdown in exports suppressed the second quarter results.Affected by the capital expenditure cycle of the tire industry and the pace of the company’s capacity expansion, the company’s performance began to recover in the second quarter of 2018.Single-quarter company revenue for the second quarter of 20199.64 ppm, a decrease of 2 per year.67%, net profit attributable to parent company2.1.8 billion, down 10 every year.31%.We believe that in addition to high base factors, the rise of trade protectionism and export deceleration are also factors that put pressure on the company’s short-term performance.In the first half of the year, the company’s export revenue was 10.18 trillion, an increase of 9 in ten years.01%, gross profit margin 36.88%, a decrease of 2 per year.40.The company promotes the layout of Thailand, India and other overseas subsidiaries to respond to changes in international trade.The company’s current long-term tire head companies such as Michelin, Bridgestone and Goodyear will continue to improve. Domestic demand for tire molds is still strong, and the domestic share continues to increase.The company sold domestically in the first half of the year.24 ppm, an increase of 20 in ten years.06%; gross margin 26.02%, reducing by 0 every year.69.Affected by factors such as low-end excess capacity, rising costs, and severe environmental inspection and punishment, the domestic tire industry is undergoing a continuous reshuffle process. Clearing out low-end production capacity and expanding certain companies 杭州夜网论坛 will be the main line for a long time to come. The company has long benefited from the increased concentration of the tire industry.There were 287 tire manufacturers in Shandong Province in 2014, and only 192 at the end of 2018.And the domestic head enterprises such as Triangle, Linglong and Sailun have continued to expand in scale, and the industry has become more differentiated.We believe that the domestic tire industry upgrade will increase demand for advanced tire molds, and the company’s market expansion is expected to further increase.According to our statistics, the consolidated capital expansion stage of overseas tire leaders provides support for the company’s international market development. Company earnings forecast and investment rating: We expect the company to achieve operating income of 44 in 2019-2021.9.2 billion, 51.24 billion, 59.3 billion; net profit attributable to mothers is 9.5.8 billion, 11.5.1 billion and 13.19 ppm; EPS is 1.20 yuan, 1.44 yuan and 1.65 yuan, the corresponding PE is 17 respectively.71X, 14.76X and 12.88X.Risk warnings for maintaining the “strongly recommended” rating: 1. Raw material prices fluctuate sharply; 2. The tire industry investment is gradually expected; 3. The RMB exchange rate changes;

© 2020 深圳蒲友品茶论坛 . Powered by WordPress. Theme by Viva Themes.