Underestimated reverse double-click value discovery first year

Rimage (603730) 2018 Annual Report Review: Buy!

Underestimated reverse double-click value discovery first year

Event: The company released its 2018 annual report and gradually realized revenue42.

73 ppm, +31 a year.

61%, achieving net profit attributable to mother 5.

580,000 yuan, at least -4.

07%, the net profit of non-returned mothers was deducted 5.

2.9 billion, -4 per year.

35%, basically in line with expectations.

We 杭州桑拿 believe that the company’s excellent margin can be benchmarked against Fuyao, Minshi, and the interior decoration field has reached a global cost advantage. 2019 will be the first year of the company’s value discovery. We will continue to recommend buying.

The bottom is about to reverse and the faucet will eventually rise.

2018 was a low point for the company’s performance, and it also formed a historic bottom. Perturbations affecting performance include: ① the exchange rate of the US dollar was low in 18H1; ② the disturbance of changes in the fair value of currency exchange derivatives; ③ the rise of raw materials;The structural gross margin has moved downwards; ⑤ Sino-US tariffs dragged down 18Q4 sales expenses; ⑥ M & A consulting fees, equity incentive costs dragged down management expenses, and ⑦ cash acquisition 深圳桑拿网 financial costs dragged down.

However, the reversal in 2019 is imminent: ① Add order 1 every year.

400 million US dollars, the highest in the past 5 years, to ensure the growth of interim results; ② category expansion logic is gradually verified, the product gradually changes from sun visor (100 yuan) → headrest armrest (400 yuan) → ceiling assembly (1,000 yuan), currentlyHeadrest and armrest products have received new orders from US-German customers, and the global model of ceiling supply has been partially reduced. ③ Profit disturbance items have been reduced or eliminated. ④ Mergers and acquisitions have gradually transformed the synergy effect, and cost reduction and efficiency have been steadily advanced. ⑤ 19-year US dollar revenueDon’t be afraid of the depreciation of the dollar.

The cost leadership pattern is optimized, and repurchase dividends show value. 2019 is the first year of value discovery.

①The company’s core cost advantage is leading the world, with deep initial integration. It has existing multi-dimensional cost reduction methods for raw material formulas, component processes, and self-made production line molds. It has built cost advantages in the field of sun visors and headrest armrests and stabilized long-term profit margins.

② Overseas misplaced competition amplifies its advantages, provides prompt and thoughtful service + China’s labor cost bonus, which makes the company unique in North America. The sun visor quickly occupied the market.

The company expects to buy back 9.71 million shares + initial dividend 0.

5 yuan, the equivalent dividend is about 4.

6 trillion, equivalent index rate reached 4.

3%, highlighting the value of the company.

Investment rating: Revise down the performance forecast. It is expected that the company’s net profit attributable to its parent in 2019-2021 will be 7 respectively.

8/9.

4/10.

9 trillion, EPS is 1.

91/2.

30/2.

67 yuan, PE is 14.

0/11.

6/10.

0 times, maintain target price of 35 yuan, maintain “Buy” rating.

Risk warning: US auto market sales increase; Motus integration progress exceeds expectations