FAW Fuwei (600742): Deducting non-performing performance exceeds expected equity incentives are sufficient

FAW Fuwei (600742): Deducting non-performing performance exceeds expected equity incentives are sufficient

Event: The company released a quarterly report for 19 years and realized revenue of 29.

600 million (-1.

3%), net profit 1.

100 million (-6.

9%), deducting non-net profit 1.

100 million (-2.

2%), exceeding our Air Force’s expectations of about -10%, which is significantly better than the industry situation. Capital expenditure has entered a long-term in the 南京桑拿网 past two years.

At the same time, the company launched the stock investment incentive plan at the same time as the annual report was released, with an exercise price of 13.

04 yuan / share is the same as the current sustainable development.

It is expected that the eps for 19-21 will be 1.

14/1.

48/1.

94 yuan, corresponding to November 19.

4xpe, maintaining “highly recommended” rating.

Comment: 1, 16-18 years of capital expenditure entered a supplementary period, the first quarter performance was slightly better than expected in the first quarter, the passenger vehicle industry sales fell -13.

9%, industry pressure is relatively tight.

On the revenue side, the company benefits downstream core customers FAW-Volkswagen (75%), FAW Toyota (15%), and FAW Jiefang (10%). The product cycle performance is better than that of the industry; in terms of gross profit margin, it continues to benefit from high-margin automotive lamp productsIn terms of time (supporting Magotan, Bora, Golf, Sagitar, Tanyue high-end, mid-to-high-end models), at the same time, the capital expenditure of the past two years has entered the investment period, and the gross profit margin has gradually increased to zero.

5%; on the expense side, the increase in sales expense ratio increased by 0.

2%, mainly due to the increase in customer guarantee fees for new products; the management expense rate continues to drop 0.

6%, mainly due to the start-up expenses incurred during the construction of the new factory in the same period last year, and reduced employee compensation costs.

Overall performance remained robust against the background of the industry’s double-digit value.

2. Enhancement of PE: Fair incentives are implemented. It is estimated that the concerns of the company to cater to the reorganization market are the contradictions between long-term logical smoothness and the release of uncertainty in short-term performance. The rationalization of incentive mechanisms will help to ensure thatConsistency of core appeals.

In the future, we can see performance that is more responsive to cycles and trends.

The company’s annual report also publishes equity incentives, and it intends to award 2,492 to the incentive objects.

One million stock budgets, accounting for approximately 50,765 of the company’s equity budget at the time of the announcement of this incentive plan budget.

6.16 million shares 4.

91%.

The number of people covered reached 162, which basically covered core leaders.

The share option exercise price of the company is 13.

04 yuan / share, the current price is basically flat.

At the same time, we believe that as a subsidiary of FAW Group, the fair incentive exercise index is relatively conservative. It is expected that with the continuous improvement of fundamentals, performance growth will be higher than the fair incentive exercise target.

Risk Warning: The sales volume of new downstream models is lower than expected.