Leading high-elastic Stamping parts to increase weight in the field of lightweight and new energy
The company has been deeply involved in the field of automotive stamping parts for more than 30 years, with large-scale advantages, excellent supporting capabilities and complete production capacity layout, and its leading competitive advantages have been continuously consolidated. Benefiting from the resonance of the three major factors of high-quality customer structure, capacity release cycle, and improvement of management capabilities, the company’s performance is expected to achieve high growth.
In the long run, relying on the advantages of high-quality customers and adding weight and new energy business, the company will help the company’s long-term growth. At present, the company has become a Tier 1 supplier of Tesla body parts, and the holding subsidiary is a supplier of battery box trays for the Ningde Times. It is estimated that the company’s net profit attributable to the parent in 19-21 will be 1.99/3.63/467 billion, and the EPS will be 0.63/1.16/1.49 yuan respectively. The corresponding valuation in 2020 will be 12X, and the “strongly recommended-A” rating will be maintained.
Domestic high-quality stamping parts enterprises, leading competitive advantages continue to consolidate. In the future, fierce competition among downstream vehicle companies will become normal, which will bring opportunities and challenges to stamping parts companies. The company has been deeply involved in the stamping field for more than 30 years, and its competitive advantages have been continuously consolidated. The company has a high-quality customer structure, supporting high-quality OEM customers such as Honda, Toyota, and Volkswagen, and newly develops BMW and Tesla customers.
The inflection point of short-term performance has been found, and the long-term benefit from the trend of downstream concentration. In the short term, the company’s profitability is expected to improve substantially, mainly due to the resonance of the triple factor. 1. The company has a good customer structure and fully benefits from the current structural recovery trend of passenger vehicles. The future SOP for new orders and the increase in shipments are conducive to the recovery of gross profit margin. Second, the company is currently at the end of the capital expenditure period and will enter the capacity release cycle in the future.
A sound production capacity layout will reduce product transportation costs and outsourcing manufacturing costs. Third, the company carried out automation and information transformation of the production line, introduced automatic stamping production lines, flexible robot automatic welding lines and MES system control, etc., to improve the production efficiency and management level of stamping parts production lines. In the long run, the company grasps high-quality customer resources and is expected to fully benefit from the trend of centralization of downstream vehicle companies.
Deploying lightweight and new energy related businesses, the company is a Tier 1 supplier of Tesla body parts, and Jiangsu Hengyi is a supplier of battery box trays for Ningde Times. The company entered into the lightweight and new energy business by acquiring 51% of Jiangsu Hengyi’s equity in cooperation with BAIC Group. From the perspective of long-term planning in the future, relying on the advantages of high-quality customers, more related businesses are expected to land. The continuous landing of lightweight and superimposed new energy business will help the company’s long-term growth and open up the valuation ceiling.
Risk warning: The recovery of automobile sales is lower than expected; the progress of light-weight and new energy-related business development is not as good as expected; the effectiveness of company management is not as good as expected;
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