Joyson Electronics (600699): Gross profit margin steadily increased in 2Q19; security business integration continued to advance

Results in line with our expectations Joyson Electronics announced its 2019 Interim Report with revenue of 308.

300 million, +36 a year.

2%; net profit attributable to mother 5.

1 ‰, 37 years ago.

4%; deduct 5 if not return to mother.

7 trillion, +25 a year.


Among them, 2Q realized deducted non-attributed net profit2.

800 million, performance in line with our expectations.

Development Trend 2Q19 Gross margin and cash flow improved; capital expenditures remained high.

In the second quarter of 19, the company realized revenue of 154.

0 ppm, only one level in ten years.

6%; single quarter gross margin reached 17.

5%, a month-on-month increase and an annual increase of 0.



In terms of expenses, the rate of R & D expenses is increased by 1 each year.

Outside of 6 points, other expense ratios did not change much.

Net profit attributable to mothers and net profit attributable to non-mothers in the second quarter of 19 were two.

$ 400 billion and 2.

800 million.

In the second quarter of 19, the company realized operating cash flow14.

90,000 yuan, an increase of 18 in ten years.


After the acquisition of Takata assets, capital expansion remained high, reaching 10 in the second quarter of 19th.

US $ 300 million, which we expect to be mainly used to update Takata’s automation equipment to improve efficiency.

In terms of business, 1H19’s security business revenue was 238.

6 trillion, gross margin 16.

7%, compared with 15 in the same period last year.

The 7% water level has risen steadily, and cash cows have gradually appeared.

1H19 automotive electronics revenue 48.

6 ppm, a 10-year increase of 2.

4%; gross profit margin 18.

4%, a decline of 0 per year.

25 points.

Looking ahead, we expect to gradually reach the domestic public MIB3 project (life cycle of 10 billion) in the second half of the year, and the profitability of the electronics business is still 四川耍耍网 improving.

In addition, the BMS business will also be transformed into the major customers of European Mercedes-Benz and BMW gradually increasing volume; 1H19 functional parts business income18.60,000 yuan, an increase of 1.

6%, gross margin is 22.

7%, an increase of 1 per year.

57 points.

The layout of automotive electronics business has gradually improved, and it has entered an accelerated acquisition period.

At present, the electronic business has formed a perfect layout of PCC, BMS and HMI, and each product has been further refined. New orders for electronic business in 1H19 exceeded RMB 17.3 billion, which will remain the main growth point in the medium and long term.

Earnings forecasts and estimates Due to the pressure of the global auto market, we have lowered the company’s profit forecasts for the years 19 and 20 by 8% and 13% to 11.

09 ppm and 11.

8.2 billion.

The current priority is 17.

5x 2019e P / E and 16.

4x 2020e price-earnings ratio.

Maintaining Outperform rating, we cut our target price (25 yuan after the ex-rights of 25 yuan) by 20% to 20 yuan, corresponding to 23.

5x 2019e PE ratio and 22.

The 0x 2020e price-earnings ratio continues to have 34% upside.

Risks The downturn in the European and American auto markets is dragging down overseas business; safety business integration is lower than expected.

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