Delian Group (002666): Market steadily expands after performance exceeds expectations

Performance summary: The company’s 2019 semi-annual report announced that in the first half of 2019, it achieved revenue of 1.6 billion US dollars, each shift 8.

5%, achieve net profit attributable to mother 0.

9 ‰, an increase of 46% in ten years, net income of non-attributed mothers to zero.

800 million, an annual increase of 37%.

The performance is in line with expectations, and investment income contributes potential.

In the first half of the year, due to the downturn in domestic automobile production and sales, the company’s revenue showed negative growth.

Aftermarket business remained stable, with revenue in the first half of the year1.

10,000 yuan.

The gross profit margin is 15.

9%, about 1 unit higher than the same period last year.

Period expenses cost 12.

8%, an increase of 2 per year.

2 amounts, of which the sales expense ratio, management expense ratio and financial expense ratio are 4.

1%, 8.

0% and 0.

7%, up +0 respectively.

6%, +1

3% and +0.


The substantial increase in the management expense ratio was initially due to the increase in investment in research and development of low-carbon green products.

Investment income increased by about 0 compared with last year.

US $ 500 million, mainly due to the increase in investment 深圳桑拿网 income of the Shanghai Shangye Fund, an associate.

Steady development of the main business, with equal emphasis on endogenous extension.

The main business of the company implements the idea of “adhering to the factory base”. The subsidiaries Qingdao Delian and Foshan Delian Phase II continue to step up production lines and storage equipment construction.

The report summarizes that the company has successively invested in shares of the car aftermarket hazardous waste recycling company. The company’s code information, the automotive front-loading market tire pressure monitoring system supporting company Shanghai Taihao Technology, has started the road of horizontal layout and integration, and has a stable investment style.The business and strategic directions are highly aligned.

Among them, the company relies on the 南京桑拿网 information platform established by Duma Information, and establishes extensive cooperative relationships with terminal 4S shops and auto repair shops, obtains a large amount of recovered and transformed data information, establishes an accurate cargo circulation database, and realizes technology and resource complementarity, thereby giving play to the automobile.Aftermarket synergy, saves comprehensive distribution costs, and improves product sales profit margins.

Earnings forecasts and investment advice.

The semi-annual report performance exceeded expectations. The company is an outstanding company in the automotive fine chemical industry. At the same time, mergers and acquisitions have actively expanded the aftermarket business, and business collaboration has ensured subsequent development.

Increase the company’s net profit attributable to mothers by 2019-2021.



7 trillion, the corresponding EPS is 0.



35 yuan, the compound strength of performance in the next three years is 22%.

We give 22 times PE in 2019, corresponding to PEG of 1, and target price of 6.

16 yuan, upgrade to “buy” rating.

Risk warning: Post-market business development is less than expected; upstream raw material prices have risen sharply; new energy vehicle customers have not developed as expected.