Weichai Power (000338): The overall operating results have been positive.

Weichai Power (000338): The overall operating results have been positive.

Event: The company announced its 2018 annual report and achieved a total of 1,592 operating income.

600 million yuan, a year-on-year increase of +5.

1%; net profit attributable to mother is 86.

60,000 yuan, +27 compared with the same period last year.


Under the heavy boom of “heavy truck + construction machinery”, the top of the company’s core power supply faucet is stable.

In 2018, the heavy truck industry as a whole achieved 114 sales.

80,000 units, an annual increase of 2.


The company’s heavy truck engine sales reached 36.

30,000 units, unchanged from one year to 2017, with a market share of 31.

6%, far higher than similar enterprises.

The heavy trucks, transmissions, forklifts, etc., which the company owns, have achieved sales of 15 respectively.

30,000 units, 90.

90,000 units, 20.

40,000 units, increasing by 2 each year.

7%, 8.

9%, 6.


The growth rate of fixed investment continued to pick up from January to February 2019, and the annual growth rate of sales of construction machinery continued to exceed expectations. Weichai Power will continue to benefit as a core supporting supplier for non-road engines;The increase in shares will further increase market share.

The company’s financial indicators have improved overall, and its operating structure has continued to improve.

2018Q4 company gross profit margin 24.

3%, compared with 2018Q3, it is increased by about 3 ratios, and compared with 2017Q4, it is increased by about 2 ratios.

At the same time benefited from asset and credit impairment in 20188.

40,000 yuan, compared with September 2017.

5 billion dollars.

2 up to 7.

3%, with the exception of Kiao, which saw a slight decline, the net profit levels of Shaanxi Heavy Duty Truck, Fast Gear, and Weichai Headquarters rose.

The cost rate is slightly reduced by 0 every year.

2 up to 13.

4%, while R & D expenses reached 6.5 billion US dollars, exceeding the level in 2017, and the proportion of revenue increased by 0.

35 good to 4.


The gearing ratio was reduced to 69.

7%, sales receivables accounted for 90% of operating income.

4%, 0 each year.

6 digits and 9.

2 outstanding improvements. The Chinese version of “Cummins” has gradually taken shape, and “National Six” has accelerated the consolidation of the company’s moat advantage.

Based on the diesel engine as the core, the company has steadily advanced and completed the acquisition of Boudouane, Linde Hydraulics, KION and Dematic after nearly 10 years of layout, and strategically entered the United States PSI.

Completed the layout of the hydraulic system, intelligent storage and logistics and actively entered the military battery sector.

On the complete commercial vehicle power gold industry chain, the company continuously integrates industrial extensions, consolidates technical barriers through acquisitions and introductions, and creates cost advantages through domestic substitution, and eventually builds a leading domestic commercial power supply leader.

Earnings forecast and rating: Based on the comprehensive promotion of the company ‘s road and non-road product market share increase due to the trend of emissions and regulatory policies, we have raised our earnings forecast and expect EPS to be 1 in 2019-2021.

33 yuan, 1.

58 yuan, 1.

76 yuan, corresponding to dynamic PE is 8 times, 7 times, 6 times, maintaining the “buy” level.

Risk Warning: The growth rate of fixed investment may be lower than expected, and the macro economy may continue to be sluggish.