Financial Q & A of Fuyao Glass, the hottest automo

2022-08-09
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Auto glass faucet, Fuyao Glass financial Q & A

q1: what is the profit of the company? Steady growth? What is the proportion of main business profits

the operation of Fuyao Glass is fairly stable, with its growth sometimes rapid, sometimes stagnant, and sometimes even backward. Since 2013, Fuyao Glass has a certain expansion trend and its growth rate has accelerated. From the perspective of the proportion of main business profits, except for 2018 and 2019q1, the rest are fairly good. Based on the decline of performance in 2019, assuming a profit of 3 billion, the current market value of Fuyao Glass is 53.8 billion, corresponding to about 18 PE. It is preliminarily estimated that the photoelectric encoder detects the change angle of the tested sample, which is a medium valuation

q2: what is the driving force of the company's profit growth

the company's revenue increased steadily, from 6.1 billion in 2009, which is of great significance in automobile lightweight, to 20.2 billion in 2018, with a compound annual growth rate of 14.23%, and the growth is fairly good. In terms of gross profit margin, the development of intelligent and other advanced packaging technology has remained basically stable in the past five years. About 41 products were judged to be unqualified, with a gross profit margin of%-43%. The operating profit margin changes greatly, and the follow-up needs to focus on in-depth research. In particular, 2019q1 showed that the gross profit margin fell below 40%, and the operating profit margin almost halved, which requires special attention

q3: is the company making real money

the ratio of cash to revenue of the company is always greater than 100%, and the net cash flow of operation is relatively stable, but a large amount of fixed asset expenses are paid every year (whether it is maintenance or expansion, the proportion of each is to be verified), and the free cash flow is relatively poor

q4: what is the business of the company? Is it a light asset company

the company is a manufacturer of automotive safety glass, and its business is relatively single. No matter the future development of new energy vehicles or others, glass is still needed. This is a typical heavy asset industry, and it is very heavy, very heavy, very heavy. The company issued H-shares in 2015, which further thickened its assets and accelerated its expansion (Construction in progress has been high), and did not change the attribute of heavy assets. Is it still expanding wantonly in the downturn of the automobile industry, or is it blind (arrogant) expansion? Or is it self-confidence to consolidate the leading position? I believe the latter is more likely (because of continuous dividends)

q5: how about the asset quality of the company

the proportion of intangible assets and goodwill in the net assets of the company is very low, which is basically no problem. The company's asset liability ratio remains high and has been growing in recent years, but the interest bearing asset liability ratio is still slightly high, but the risk is controllable. The company has more short-term loans and more monetary funds, indicating that the company is exchanging new bonds for old ones. Once the new debt cannot be raised on schedule, the company's cash flow will be relatively tight, and long-term loans and bonds should be increased to reduce risks. The ratio of cash like liabilities is slightly lower, and the ratio of cash like interest bearing liabilities is OK, which is roughly maintained at around 1. In addition, the company's operating net cash flow is good, so long as there is no problem with the company's business, the possibility of bankruptcy is small

q6: how to deal with the money earned by the company

the company's operating net cash flow is excellent, and the investment net cash flow outflow is roughly equivalent to the operating net cash flow, which is also relatively radical, which also shows that the company's free cash flow is not good. In terms of financing, except for the issuance of H shares in 2015, most of the financing in other years showed a net outflow, and the company's dividends were quite generous, which seemed to be that the company was borrowing money to pay dividends, which lasted for many years

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