金沙娱樂城下载:Tuopu:1H17slightly above;maintaining Buy on strong momentum

44% profit growth on strong demand from local brand customers。

6% profit YoY with strong top-line growth offset by margin and FX。

    Tuopu released its 1H17results after market close. The company’s
1H17grossrevenue edged up by 40.1% YoY to RMB2.3bn, achieving 46% of our
originalFY17E revenue forecast. The revenue growth was mainly driven by
strong ordersfrom local brands OEM customers, such as Geely, SAIC Roewe,
and GACTrumpchi, according to the company. By product, revenue for shock
absorber anddecorative parts increased by 20.0%/71.0% YoY to
RMB1.0bn/1.1bn, respectively.1H17gross profit grew 34.4% YoY to
RMB683.1m with 1.2ppt YoY grossprofit margin contraction mainly due to
product mix deterioration with lesscontribution from shock absorber and
intelligent braking segments. Gross marginfor shock absorber and
decorative parts remained flat, improving 9/90bps YoY to35.0%/25.4%,
respectively.。

    3Q17gross revenue edged up 25.8% YoY to RMB1.2bn, likely driven by
strongorders from local brands OEM customers, such as Geely, SAIC Roewe,
andGAC Trumpchi. Gross profit rose 20.0% YoY to RMB324.2m with a 1.3ppt
YoYgross profit margin contraction, mainly due to product mix
deterioration with lesscontribution from shock absorber and intelligent
braking segments, in our view.Together with a flattish SG&A to sales
ratio in 3Q17, offset by FX losses (due toRMB appreciation vs. USD) and
lower other operating income, 3Q17net profitincreased only mildly, 5.8%
YoY to RMB164.1m.。

    Together with a slower-than-revenue growth in SG&A expenses (+25.6%
YoY)and 1.1x YoY jump in other income, 1H17net profit increased by 44.1%
YoY toRMB387.0m, achieving 52% of our original FY17E profit estimate and
48% ofconsensus.。

    On a 9M17basis, Tuopu’s net profit of RMB551.1m was up 30.1% YoY
andaccounted for 70% of our full-year FY17forecast and 67% of the
Bloombergconsensus FY17estimate. Therefore, we consider the results as a
slight miss toboth our and consensus expectations.。

    On a quarterly basis, 2Q17revenue increased by 33.3% YoY (flattish
QoQ) toRMB1.2bn. Gross margin deteriorated 1.8ppt YoY (27bps QoQ) to
29.1%. 2Q17net profit increased by 50.0% YoY (24.2% QoQ) to
RMB214.4m.。

    Deutsche Bank view – Buy on growth potential from ADAS。

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