$Standard Motor Products (SMP.US)$It is an American company ...

The main business is engine management and temperature control, and nearly 90% of the market is in the US.

Over the past 5 years, gross margin has basically remained around 29%, while the return on net assets has increased from 8.5% to 15.8%, which is not very attractive.

Revenue has basically been around 1.12 billion in the past 5 years, with an increase of 15% to 1.3 billion dollars in 2021. Operating profit increased by an average of 4.9% in the past 5 years, excluding 4 years, with an average growth rate of 4.9%. Net profit declined sharply in 2017. The average growth rate in the past 5 years was only 8.5%, and the average growth rate in the past 3 years was 28.4%.

Normally, profit pressure is quite high in the second year after the sharp rise. In the first two quarters of 2022, revenue increased by 10.3%, operating profit fell 17.2%, and net profit fell 20%. It seems very difficult to achieve profit growth this year.

The income statement still looks very clean. Other accounts for very little, interest expenses are decreasing year by year, and the interest burden can be ignored.

The balance ratio has risen from 42.4% to 53.8% in the past 5 years. Inventory has increased rapidly. In 2021, it increased by 126 million yuan, net profit of more than 90.95 million, and the profit content is not high.

There were almost no long-term loans in 2021, only 128 million short-term loans, but in the second quarter of 2022, short-term loans fell to 64 million, while long-term loans increased to 200 million. Although the leverage ratio is still not high, this change is worth paying attention to.

Net operating volume has slightly exceeded net investment over the past 5 years, with a certain surplus, but net operating flow was 100 million in Q1 2022. This change is also worth paying attention to.

Currently, the price-earnings ratio is 850 million, and the price-earnings ratio is TTM of 940 million. Let's wait and see.