标题：Shuanglin Auto PartsHelped by local brand growth;entering smart driving & powertrain
发布日期：2016-04-14 11:17:45
内容： Results in line In 2015, Shuanglin’s net profit attributable to shareholders grew 83.0% YoY to Rmb243mn, in line with expectations.The company proposed a cash dividend of Rmb1 per ten shares. Trends to watch 4Q15 operating profit margin expanded; G&A expenses were effectively controlled. In 4Q15, net profit rose50.9% YoY to Rmb67.33mn despite a high base. Dragged by HQ business, GM in 4Q15 dropped 1.7ppt. However, G&Aexpense ratio declined 3.3ppt YoY. Strengthening control over G&A expenses drove up operating profit margin. Profitmargin will likely further expand given the recovery of HQ business and continuing rapid growth of New Torch business. New Torch and Liuzhou Technology to see fast growth driven by SGMW. New Torch’s net profit in 2015 rose~60% YoY to ~Rmb176mn thanks to the ramp-up of SGMW’s models like Baojun 730/560. Earnings of LiuzhouTechnology rose 2x YoY to Rmb31.72mn. We estimate that New Torch and Liuzhou Technology are likely to grow rapidlyand fuel company’s earnings in 2016 given the strong momentum of SGMW. Smart driving to materialize soon; growth potential of DSI to be unleashed. Shuanglin is expected to adopt aproactive strategy of transformation and upgrade. Its smart driving project is likely to materialize soon. Boyue was wellreceived by the market and will be another key model of compact SUVs. Thanks to the growth of Geely and otherdomestic brands, the production and sales volume of DSI may increase rapidly. The potential injection of DSI assetsmay further strengthen Shuanglin’s profitability. Earnings forecast We maintain 2016/17e net profit forecast at Rmb350mn and Rmb490mn. Valuation and recommendation We are upbeat on its business transformation and M&A and its future strategic businesses of core powertrain, AFVs andsmart driving. The company appointed former deputy general manager of UAES as its deputy general manager, showingits willingness to further transform. We see a good entry point after the sharp correction. Maintain BUY and TP atRmb50. Risks New businesses disappoint.
发布日期：2016-04-14 11:17:45
内容： Results in line In 2015, Shuanglin’s net profit attributable to shareholders grew 83.0% YoY to Rmb243mn, in line with expectations.The company proposed a cash dividend of Rmb1 per ten shares. Trends to watch 4Q15 operating profit margin expanded; G&A expenses were effectively controlled. In 4Q15, net profit rose50.9% YoY to Rmb67.33mn despite a high base. Dragged by HQ business, GM in 4Q15 dropped 1.7ppt. However, G&Aexpense ratio declined 3.3ppt YoY. Strengthening control over G&A expenses drove up operating profit margin. Profitmargin will likely further expand given the recovery of HQ business and continuing rapid growth of New Torch business. New Torch and Liuzhou Technology to see fast growth driven by SGMW. New Torch’s net profit in 2015 rose~60% YoY to ~Rmb176mn thanks to the ramp-up of SGMW’s models like Baojun 730/560. Earnings of LiuzhouTechnology rose 2x YoY to Rmb31.72mn. We estimate that New Torch and Liuzhou Technology are likely to grow rapidlyand fuel company’s earnings in 2016 given the strong momentum of SGMW. Smart driving to materialize soon; growth potential of DSI to be unleashed. Shuanglin is expected to adopt aproactive strategy of transformation and upgrade. Its smart driving project is likely to materialize soon. Boyue was wellreceived by the market and will be another key model of compact SUVs. Thanks to the growth of Geely and otherdomestic brands, the production and sales volume of DSI may increase rapidly. The potential injection of DSI assetsmay further strengthen Shuanglin’s profitability. Earnings forecast We maintain 2016/17e net profit forecast at Rmb350mn and Rmb490mn. Valuation and recommendation We are upbeat on its business transformation and M&A and its future strategic businesses of core powertrain, AFVs andsmart driving. The company appointed former deputy general manager of UAES as its deputy general manager, showingits willingness to further transform. We see a good entry point after the sharp correction. Maintain BUY and TP atRmb50. Risks New businesses disappoint.
