SAIC (600104) Interim Report Comments: Q2 Centralized Depot Performance Demonstrated Significant Performance

SAIC (600104) Interim Report Comments: Q2 Centralized Depot Performance Demonstrated Significant Performance

The report reads that the 2019H1 revenue quarter is -19%, and the second quarter exceeds -22%; the net profit attributable to mothers totals -27.

5%, the second half of the year -41%, overall lower than our initial performance forecast.

Key points of investment SAIC Finance stands out, and other business modules are offset by different degrees in 2019H1 return to net profit of 137.

6.4 billion (Q1 / Q2 are 82.

5/55 million yuan), of which investment income is 130.

54 ppm (Q1 / Q2 杭州桑拿网 were 67/64 ppm, respectively), and the net profit of SAIC Autonomous + Other Merged Business was 7.

.

1 ppm (Q1 / Q2 are 15 respectively.

7 / -8.

5.9 billion).

Manufacturing caliber 2019H1 SAIC Volkswagen contributed 49% (-36%) of net profit, and SAIC-GM contributed 36% (-31%) of net profit.

Regardless of merger consolidation, SAIC-GM-Wuling contributed 400 millionths of a second (-60%) of net profit.

Huayu Automobile contributed net profit of 2 billion yuan (ten years -29.

5%), SAIC Finance contributed a net profit of 28.

2 billion (+ 2%).

The sluggish demand and the centralized clearance of the national five led to further pressure on the performance of the second quarter of 2019.

6%, Q2 exceeded the starting point by 22%, SAIC Group achieved vehicle sales of 293.

70,000 (-16 a year.

6%), of which 253 are passenger cars.

80,000 (at least -17.

6%), 39 for commercial vehicles.

90,000 vehicles (a year-9).

6%), industry and company sales are lower than our expectations at the beginning of the year.

The implementation of National VI in some provinces until July 2019 led to the centralized deletion of National V inventory in Q2, and the terminal discount rate rose rapidly, resulting in a lower-than-expected decrease in bicycle net profit (SAIC Volkswagen dropped 0 under the manufacturing caliber).

40,000 yuan to 1.

10,000, every decrease of SAIC-GM.

20,000 to 0.

850,000 yuan, SAIC-GM-Wuling fell 0 in ten years.

10,000 to 0.

10,000 yuan, and the sales expense ratio rose by 0 every year.

95pct, Q2 rises by 1.

4pct, the final company net interest rate is 0.

43 points.

As demand bottomed out and destocking pressure decreased, the company’s performance promoted bottoming out.

The short-term performance is down, and the long-term competitiveness is still obvious. It is necessary to further increase the expected bicycle profit. The net profit attributable to mothers in 2019-2021 will be lowered to 266.6 / 299 / 33.4 billion (originally 32.6 / 362 / 33.9 billion).
86X / 9.

65X / 8.

64X.
2019 is the year in which passenger car cycles alternate. Destocking is the main tone. The boom in 2020-2021 attempts to enter the recovery channel.
As the industry leader, the short-term performance of SAIC Group is under pressure from the industry and its own inventory cycle. It still has core competitiveness in the long run. In particular, 杭州桑拿网 SAIC Volkswagen has a clear competitive advantage in the Chinese market and maintains an “overweight” rating.

Risk warning: The macro economy is lower than expected; the size of the passenger car industry further deteriorates.