The performance growth is considerable, and the trend of product structure optimization is obvious.
The company's performance has continued to grow in the past three years. Revenue in 2020 was 1.409 billion, up 40.67% from the same period last year. Revenue in the first three quarters of 2021 was 1.269 billion, an increase of 32.24% over the same period last year. While the company's revenue grew steadily from 2016 to 2020, the proportion of diesel fuel pumps to gasoline engine pumps gradually decreased from 82.76% in 2016 to 60.40% in 2020.
The gradual increase in the proportion of revenue from other businesses such as motors and oil pumps is the result of the company's active layout to other businesses such as new energy. From 2018 to the first three quarters of 2021, the company's net sales interest rate was 10.73%, 9.29%, 11.97% and 10.11%, which was relatively stable.
The leading company of domestic engine lubrication cooling pump, which has a stable cooperative relationship with a number of domestic and foreign manufacturers, is the leading enterprise in the field of domestic engine lubrication cooling pump, and it is also the first enterprise in the industry to realize synchronous design and development with the mainframe factory. with more than 40 years of industry experience, it has a leading advantage in technology development, quality management, customer recognition and so on. The company has established solid cooperative relations with a number of major manufacturers at home and abroad, with international customers including more than ten famous host factories such as American Cummins and Caterpillar Inc, and domestic customers including more than 60 mainframe factories such as Yuchai and Weichai. We believe that the company's leading position in this field will continue to be maintained, there are three main reasons: 1) the auto parts industry has a higher customer access threshold because of the long access cycle and strict access standards, 2) the company has mastered a series of key core technologies of engine pump products, and 3) the company has strong quality management and supply chain management capabilities.
New energy vehicles have entered a period of rapid growth, and new business will continue to be pulled. 2021 new energy vehicles have entered a period of rapid penetration. XPeng Inc. CEO he Xiaopeng judged that "the national penetration rate of new energy vehicles will reach 30% in 2025, and even up to 60% in first-tier cities with emission restrictions."
Under the background of the rapid infiltration of new energy vehicles, the volume of new energy vehicles mainly pulls the company's products in three directions: 1) the electronic water pump produced by the company widely serves the three-electric system of pure electric vehicles and hybrid vehicles. To provide it with a continuous and reliable supply of coolant with continuously adjustable flow. 2) the trend of large-scale application of lidar in new energy vehicles is expected to boost the sales of motor products of the company. 3) Yilida, which is controlled by the actual controller with the company, is the leader of domestic automotive EPS, and the company is expected to supply batch EPS motors to it. In the specific product field, the company has developed a rich electronic pump product line according to different downstream needs, with the rapid penetration of new energy vehicles will promote the rapid growth of the company's electronic pump business. At present, the company's electronic pump products have Toyota Motor Corp (new energy), American Cummins, American Peca, Japanese Aixin, Japanese Nissan, Zhuzhou CRRC (new energy), SAIC transmission, Xi'an Shuante and other well-known customers at home and abroad.
Investment suggestion: we are optimistic that the company will benefit from the motorization and intelligence of automobiles. We estimate that the company's net profit from 2021 to 2023 will be 17,000,000 yuan, with a target price of 46.58 yuan. maintain the "buy" rating risk hint: domestic electric vehicle penetration rate is lower than expected, capacity expansion is not expected, downstream customer penetration is not expected, technology iteration risk
