Rimage (603730) 2019 Third Quarterly Report Review-Third Quarterly Report Exceeds Expected Results

Rimage (603730) 2019 Third Quarterly Report Review-Third Quarterly Report Exceeds Expected Results

The company achieved revenue in the third quarter of 201913.

19 trillion, ten years +9.

7%, +7 from the previous quarter.

8%; net profit attributable to mother 1.

71 ppm, +19 a year.

6%, +15.

5%, exceeding market expectations.

Increase the company’s EPS forecast for 2019-2021 to 1.

62/1.

96/2.

25 yuan (was 1).

47/1.

77/2.

16 yuan), maintain “Buy” rating.

Third-quarter results exceeded expectations, and Mexican plant operations improved significantly.

In the third quarter of 2019, the company achieved revenue of 13.

1.9 billion, ten years +9.

7%, +7 from the previous quarter.

8%; net profit attributable to mother 1.

71 ppm, +19 a year.

6%, +15.

5%, exceeding market expectations.

In the third quarter, the company’s net profit attributable to mothers / QoQ achieved rapid growth, mainly benefiting from the significant improvement in the operation of the Motus Mexico plant and achieving profit.

The company’s third quarter gross profit was 32.

2%, an increase of 3 from the previous quarter.

4pcts; each expense ratio totals 11.

7%, down 2 from the previous month.

6pcts, significantly improved operating efficiency.

The acquisition of Motus strengthens the leadership level and promotes global deep integration.

In 2018, the company became the world’s largest supplier of automotive sun visors by acquiring Motus, the second largest sun visor company in North America.

The company vigorously promotes the deep integration of the Motus business: 1) Optimizing the global production layout, adopting the local production of Motus Mexico’s factory floor sun visor and local production of the central controller of the ceiling to resist the risk of empire trade disputes; 2) optimizing the procurement channels, taking advantage of scale and reducingCost of outsourced accessories such as light bulbs; 3) Complementary advantages of equipment and molds, increase the automation rate of production lines, 深圳spa会所 increase the self-production rate of molds and equipment, optimize production efficiency and equipment mold costs; 4) achieve cross-penetration of different businesses and customersIt is expected that Motus will penetrate the supply chains of European customers (Benz, Volkswagen, Peugeot, etc.) and North American customers (Toyota, Lexus, Subaru, etc.) to expand its supporting product categories.

Copying the “Amami” model, the category expansion is worth looking forward to.

The company’s sun visor business is excellent in operation and management, and has established a mature global supporting and synchronous research and development capability. Its penetration rate in the North American universal supply chain system has increased from about 60% in 2011 to about 70% in 2018.

Through in-depth support for GM, the company has established a good product reputation in the North American market, accelerating penetration of Ford and Chrysler; and began to enter the European market through the acquisition of Motus.

At the same time, the company’s products have also expanded from sun visors to head restraints and ceiling central controllers.

The company is expected to continue to replicate the “Rami” model of sun visor on new products. Among them, the headrest business has been fully supported by North America, and the revenue of the ceiling central controller business has continued to rise.

Risk factors: Global automobile sales are below expectations; Motus integration is below expectations; new customer expansion is below expectations.

Investment suggestion: The company benefited from improved management of Mexico’s Motus in the third quarter, and its operating efficiency improved significantly. It raised its 2019/20/21 earnings per share forecast to 1.62/1.

96/2.

25 yuan (previous forecast was 1.)

47/1.

77/2.

16 yuan).

Considering the consolidation of the global leader in the company’s sunshade business, the integration effect on Motus has begun to appear, and strives to continuously expand new customers and new products through its own reputation and Motus channels, and maintain a “buy” rating.


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