This report is read as follows:
The company's refitting business demand is strong, external factors improve to provide performance flexibility. Around the smart car products, from the rear to the front, superimposed electric tail doors and other products permeability increase, open up a new space for growth.
Main points of investment:
For the first time, the overweight rating is given, with a target price of 27.08 yuan. The company is a high-quality enterprise in the after-market retrofit industry, gradually extending from the rear to the front, benefiting from electrification and intelligence, electric side doors, electric tail doors, electric pedal permeability increase, we estimate that the company's EPS in 2022-2024 is 0.39max 0.6shock 0.82 yuan respectively, the comprehensive PE/PB valuation gives the target price 27.08yuan, corresponding to 2023 about 45 times PE, the first coverage to give the overweight rating.
To grasp the personalized needs, the hard cross-country modification business develops steadily. The company has been ploughing in the overseas market for many years, providing car side bearing decoration, vehicle front and rear protection and other products. With the advantages of products and services, the company's overseas business is expected to maintain steady growth. For the domestic market companies are expected to seize cross-country modification, personalized modification and other subdivision needs, and continue to expand business space.
Intelligent car business is about to break out and become an important growth point of the company. In 2021, the company will definitely add cockpit electronics to create a new growth point. Smart door products have a strong sense of user experience, relatively low unit price, and have the potential of popular style products. The company has stored intelligent door products for many years, and further improved the front market channel through mergers and acquisitions in 2021, electric side doors, tail doors and other products ushered in accelerated breakthroughs in customers.
The external disturbance is coming to an end, and profits are ushering in an inflection point. The rising prices of raw materials and shipping since 2021, and the impact of foreign exchange and tariffs on corporate profitability are also under short-term pressure. With the gradual improvement of external effects such as exchange rates, raw materials and freight, the company's profitability is expected to usher in an inflection point from 2022 Q2, providing performance flexibility.
Risk tips: raw materials and sea freight remain high, and the development of cockpit electronic demand is not as expected.
