Aluminum Die casting Enterprises look forward to the layout of New Energy Business
The company's main products are automotive power systems (gearbox valve bodies, gears, etc.), electrified chassis and other parts. In 2013, it entered the field of new energy automobile parts, and developed new categories such as three electric shells to comply with the trend of automobile electrification and lightweight. Customers cover new energy models of many brands around the world, such as BMW, Volkswagen, Audi, Honda, Nissan, Hyundai, NIO Inc. and so on.
Light weight is the trend of the times, and the company has an obvious advantage of starting first.
Aluminum alloy is the best lightweight material with remarkable energy-saving effect, and the amount of aluminum used for passenger cars and bicycles will continue to increase. With the development of high vacuum die casting technology and large tonnage die casting machine, aluminum alloy die casting is more actively used in electric vehicle body and chassis structure. At the customer level, the company has entered the supply chain systems such as Great Wall, BYD and a US-funded electric vehicle company; at the technical level, the company has advanced vacuum die-casting technology and mastered low-speed laminar flow casting technology. high sealing performance based on vacuum die-casting and cost advantages brought by low-speed laminar flow casting process.
New energy products will contribute to the performance.
The company's current capacity is insufficient, according to the capacity expansion "2n" strategy, it is expected that Maanshan, new energy parts base, Hungary will increase revenue by 3.033 billion and profit by 416 million. 2020 Company's revenue from new energy products is 226 million yuan, accounting for 16.3% of the total revenue. We expect the company's revenue from new energy products to reach 4.3 billion yuan in 2025, accounting for nearly 70% of the total revenue.
Strategic layout, die-casting integration, clear medium-and long-term development strategy
The company's 2700T die-casting machine has entered mass production, 5000T die-casting machine will be used for mass production in the second half of 2021, seven large-scale die-casting machines will be added in Maanshan base, and large-scale die-casting equipment will also be arranged in the Hungarian factory. In the face of changes in the automotive industry, the company divides its business into withdrawal line, growth bottom line, growth line, explosive line and skyline, which is expected to achieve medium-and long-term great-leap-forward development.
Risk hints: valuation risk, profit forecast risk, policy risk, market risk.
Forward-looking layout of new energy business and integrated die casting, give "buy" rating company layout early, product expansion smoothly, with the release of production capacity, new energy products are expected to gradually contribute to performance, the company's strategic layout die-casting integration, medium-and long-term development strategy is clear. From 2021 to 2023, we expect to achieve a return to home net profit of 1.36 yuan, 254 pounds, 340 million yuan, and we give an one-year target stock price of 38-44 yuan, covering for the first time and giving a "buy" rating.
