标题：Asia-Pacific Mechanical and ElectronicShift towards intelligent & electronic products to fuel main biz
发布日期：2016-03-17 9:12:31
内容： Earnings in line with expectations In 2015, net profit fell 19.2% YoY to Rmb140mn, in line with preannouncement. The company proposed Rmb0.1dividend for each share, implying a payout ratio of >50%. Trends to watch 4Q15 revenue was dragged by increasing expense ratio and higher provision charges. In 4Q15, grossmargin declined 0.5ppt YoY; sales expense ratio and G&A expense ratio increased 0.7ppt and 1.3ppt (in 2015, R&Dinvestment was Rmb110mn, up 17.8% YoY). Besides, in 4Q15, the company’s net profit plunged 50.8% YoY toRmb20mn as it charged Rmb15mn impairment provisions, vs. Rmb5.77mn in 4Q14. The company has entered the supply chain of mainstream PV OEM players like SAIC Motor and GuangzhouAutomobile and would start import substitution thanks to its independent R&D strength. Looking ahead, the companyplans to establish JV in Chongqing to further explore domestic OEM market. 2016 earnings are expected to regaingrowth and net profit growth may exceed 30% thanks to successful new client expansion. In the medium/long run,growth room for its main business has been opened with the gradual release of its new production capacity. Deployment in intelligent driving and AFVs. The company has been working on a series of deployments such asADAS systems and other intelligent driving projects, and in-wheel motors. As for core technologies like radar, arithmetic,and system integration, the company is working closely with R&D companies. It has also developed intelligent drivingvehicle products with Beijing Automobile and Chery Automobile. It may forge a whole industry chain of intelligentdriving based on its independent R&D going forward. Its independently developed intelligent driving technology isexpected to hit the market shortly to gain first-mover advantages in commercialization of intelligent driving products. Asfor AFVs, the company is an industry leader thanks to the AFV chassis systems based on its in-wheel motors. Earnings forecast Maintain 2016/17e earnings forecasts at Rmb180/240mn. Valuation and recommendation The company has become a rare name for intelligent driving with its strategic deployments in intelligent driving and AFVchassis system. It is expected to enjoy first-mover advantages in the shift toward intelligent & electronic products in theauto sector. Maintain BUY and TP at Rmb20. Risks: introduction of intelligent driving products disappoints.
发布日期：2016-03-17 9:12:31
内容： Earnings in line with expectations In 2015, net profit fell 19.2% YoY to Rmb140mn, in line with preannouncement. The company proposed Rmb0.1dividend for each share, implying a payout ratio of >50%. Trends to watch 4Q15 revenue was dragged by increasing expense ratio and higher provision charges. In 4Q15, grossmargin declined 0.5ppt YoY; sales expense ratio and G&A expense ratio increased 0.7ppt and 1.3ppt (in 2015, R&Dinvestment was Rmb110mn, up 17.8% YoY). Besides, in 4Q15, the company’s net profit plunged 50.8% YoY toRmb20mn as it charged Rmb15mn impairment provisions, vs. Rmb5.77mn in 4Q14. The company has entered the supply chain of mainstream PV OEM players like SAIC Motor and GuangzhouAutomobile and would start import substitution thanks to its independent R&D strength. Looking ahead, the companyplans to establish JV in Chongqing to further explore domestic OEM market. 2016 earnings are expected to regaingrowth and net profit growth may exceed 30% thanks to successful new client expansion. In the medium/long run,growth room for its main business has been opened with the gradual release of its new production capacity. Deployment in intelligent driving and AFVs. The company has been working on a series of deployments such asADAS systems and other intelligent driving projects, and in-wheel motors. As for core technologies like radar, arithmetic,and system integration, the company is working closely with R&D companies. It has also developed intelligent drivingvehicle products with Beijing Automobile and Chery Automobile. It may forge a whole industry chain of intelligentdriving based on its independent R&D going forward. Its independently developed intelligent driving technology isexpected to hit the market shortly to gain first-mover advantages in commercialization of intelligent driving products. Asfor AFVs, the company is an industry leader thanks to the AFV chassis systems based on its in-wheel motors. Earnings forecast Maintain 2016/17e earnings forecasts at Rmb180/240mn. Valuation and recommendation The company has become a rare name for intelligent driving with its strategic deployments in intelligent driving and AFVchassis system. It is expected to enjoy first-mover advantages in the shift toward intelligent & electronic products in theauto sector. Maintain BUY and TP at Rmb20. Risks: introduction of intelligent driving products disappoints.
