Jianghuai Automobile: basically complete the layout of the business


JAC rose 6.35% last Wednesday, with a turnover rate of 8.35%. The sedan project is an important reason for the fluctuation of earnings of Jianghuai Automobile. With the completion of the layout of car projects, the increase in production and sales volume, and the continued improvement in the profitability of light trucks and commercial vehicles, the overall profit of the company will resume growth. From May to May, the company's MPV and light truck business had a substantial increase in gross profit due to a significant reduction in costs. It is expected that the first quarter will offset losses in the first quarter and achieve better earnings in the first half of the year. Today's investment "online analyst" shows: the company's consolidated earnings per share forecast for 2009-2011 were 0.17 yuan, 0.31 and 0.42 yuan, corresponding to a dynamic price-earnings ratio of 40,22 and 16 times; the current total of 25 analyst tracking, 4 An analyst recommended “Strong Buy”, 15 analysts recommended “Buy”, and 6 analysts gave a “wait and see” rating with an overall rating factor of 2.08.

The layout was basically completed and the passenger car business will continue to be steadily advanced. Since entering the car industry in 2006, the company has started to list passenger cars as a strategic business and has invested 40 billion yuan in car projects. At present, the business layout has been basically completed, forming two large-scale businesses of commercial vehicles (including heavy trucks and light trucks) and passenger vehicles (including commercial vehicles, SRVs, and cars). This year, driven by Tongyue, sales of cars have performed well. It is estimated that the number of bridge vehicles will reach 60,000 this year, and the car project will be profitable next year.

The light truck and commercial vehicle business enjoyed a good profit. Affected by the national stimulus policies, the company's light truck sales maintained a steady growth, with sales from January to May reaching 65,711, up 7.2% year-on-year. In the future, as the direct purchase of light trucks will receive subsidies and the replacement of light trucks will continue, the sales growth rate is expected to increase in the second half of the year. Ruifeng Commercial Vehicle continued to maintain its best-selling sales. Its sales volume has remained at 4000 units in recent months. From January to May, the total sales volume reached 18,126 units, and the market share remained at the top, at 21.66%. Also benefiting from the lower raw material prices, the gross profit margin has remained at a high level, reaching a maximum of 30%, which will further increase the profit ratio of the commercial vehicle business, which will strongly support the development of the sedan business. Although gross profit margin may be lower as raw material prices recover, the gross profit margin of the above business will remain at a high level throughout the year.

Zhongyuan Securities said that considering the company's various businesses are in the rising channel, the future earnings growth will be faster, giving an investment rating of overweight.

Risk factors: Sales of cars did not meet expectations; raw material prices fluctuated significantly.

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