Sanhua Intelligent Control (002050) 2018 Annual Results Express Review: Performance Meets Expectations Optimistic for New Energy Auto Zero Business Growth

2018 performance is in line with expectations. In 2018, Sanhua Smart Control 苏州桑拿网 realized 108% (+ 13%) of revenue and 13% (+4) net profit attributable to mothers.


Looking at the initial reporting period, revenue in the fourth quarter was 25.

6.8 billion yuan (+ 7%), net profit attributable to mother 2.

68 ppm (+ 4%). Compared with the expected growth rate of revenue in the third quarter, the growth rate of profits has rebounded, meeting expected performance expectations.

The auto zero business is an important source of future growth for the company. The auto zero business is an important source of future growth for the company. The subsidiary Sanhua Auto started as an automotive air conditioner in 2004. In 2014, new products such as electronic expansion valves began mass production.Energy vehicles. At present, the company’s auto zero business has covered three major types of parts: valves, pumps, and heat exchange. It is one of the core suppliers in the field of new energy thermal management systems.

Absolutely accompanied by 1) the explosive growth of domestic sales of new energy vehicles; 2) the expansion of new energy customers; 3) the expansion of new energy thermal management system product categories, Sanhua Automobile’s zero business has become an important source of growth for the company.

Refrigeration parts leader, steady development of the main industry The refrigeration parts that replace the home appliance market are the company’s traditional main businesses. The company’s four-way valves, stop valves, and electronic expansion valves occupy the world’s largest market.

Affected by the downturn of the downstream air-conditioning industry in 2018 (real estate pulling the marginal initial + air-conditioning inventory cycle), the company’s refrigeration business revenue growth rate in the fourth quarter.

In the long run, household appliance consumption upgrades and coal-to-electricity trends will open up long-term incremental space for the company’s refrigeration business.

Equity incentives constrain employees’ rights and interests, and share repurchases demonstrate confidence that the company issued an equity incentive plan in September 2018 to 8.

The price of 37 yuan per share granted 10.33 million shares to 753 company directors, executives and core talents, accounting for 0 of the company’s total share capital.

5%, the first phase of the ban will be lifted one year later (a total of three phases); in November 2018, the company announced plans to repurchase company shares with its own funds or self-raised funds, with a repurchase amount of RMB 200 million to 600 millionThe price does not exceed 20 yuan / share, the company announced that it has announced a four-time repurchase, and the repurchase amount has been gradually2.

8.3 billion.

We believe that the equity incentive plan will definitely limit the interests of the core team, and stock repurchases show significant confidence.

Risk reminder: Traditional car sales are not up to expectations, and the prosperity of home appliances continues to decline.

Investment suggestion: Cover for the first time, and give “overweight” investment rating as a leader in traditional refrigeration components, rely on electronic expansion valves to expand new energy vehicle business and open up long-term market value. We expect EPS in 2018/19/20 to be approximately 0.



83 yuan, 26 points for PE.



2x, one-year target assessment18.

2 yuan-21 yuan, the first coverage, it is recommended to increase holdings.