Leading connector manufacturer, silicon carbide OBC and high-voltage wire harness business are gradually on the rise. The company is a leading domestic connector manufacturer. At the same time, it actively seizes the opportunity of automobile electric intelligence, and develops its on-board business continuously: 1) set up a joint venture company, Keshiderun, to lay out car wiring harness in 12 years, acquired Liuzhou Shuangfei in 16 years, and continuously developed to middle and high-end wire harness. 2) with the acquisition of Italy Meta in 15 years, it has successfully cut into the golden track of vehicle power management by undertaking its core technology and customer resources of high-end vehicle power supply. The company's home appliances and consumer electronics, automotive electrical systems, automotive electronics and new energy three major business sectors coordinated development, high-voltage wire harness and silicon carbide OBC business gradually rise.
Vehicle power supply-high voltage wire harness: Silicon carbide vehicle power supply is rising gradually, the demand of high voltage wire harness is growing significantly in the field of vehicle power supply, the charging efficiency has become the core demand of users, 800V high voltage platform is accelerated to land, the core high voltage components are expected to be fully upgraded, silicon carbide vehicle power supply is growing widely, we estimate that the scale of domestic vehicle power management market is expected to grow to 36.51 billion yuan in 2025. The vehicle power industry has a long certification cycle, high technical barriers and obvious first-mover advantages, and the third-party suppliers with technical advantages, benchmarking projects and mass production capacity are expected to break through. In the field of high-voltage wire harness, the process of automobile electric intelligence has accelerated, and the value of wire harness bicycles has risen in both volume and price. we estimate that the domestic high-voltage wire harness market is expected to reach 30.4 billion yuan in 2025. Lightweight, architecture optimization and other technology upgrading-driven industry pattern is concentrated, domestic wire harness manufacturers are expected to accelerate to seize the market.
Core focus: new energy business sets sail, vehicle power management & the leader of high-voltage wire harness is rising in the field of vehicle power management. Derun's Meta provides Porsche Taycan with the world's first 22Kw800V silicon carbide vehicle charger solution. Capacity continues to expand, in the European market has won Volkswagen, Porsche, BMW, Stellantis and other fixed points, the future is expected to enjoy industry growth and share of the double-click; in the domestic batch supply of Dongfeng EV, and won the beam of cars (Great Wall Motor and BMW joint venture), a mainstream car company and car-building new forces fixed, 21-22 years in hand and new orders are sufficient. In the field of high-voltage wire harness, with years of experience, technical advantages and rich categories in the field of wire harness, the company has begun to supply BYD, Geely, FAW-Volkswagen MEB ID4, ID6 models, Volvo new energy models, etc., and won Wuling MINI EV, Capgemini, FAW Jetta VS7 harness and other projects. Benefiting from the wave of electric intelligence, the company's high-voltage wire harness orders are expected to increase.
Profit forecast and valuation:
With the gradual rise of 800V platform, the market share of silicon carbide vehicle power supply is expected to continue to increase, and the landing of domestic designated projects will be accelerated. In addition, the company actively layout high-voltage wire harness to promote product upgrading, high-margin products drive the company's overall profitability repair, the fundamental reversal is expected to exceed expectations. We estimate that the company's revenue from 2022 to 2024 will be 85.4 Universe 965 plus 11.15 billion yuan, an increase of 12.6 percent over the same period last year. The net profit is 3.61 million RMB, and the corresponding EPS is 0.170.60 and 1.07 respectively. Considering that the company's high gross margin OBC and accelerated volume of high-voltage wire harness products are expected to drive the fundamental reversal, we give the company 35 times PE in 2023, with a target price of 20.89 yuan, covering for the first time and a "buy" rating.
Risk tips: raw material prices rise sharply, exchange rate fluctuations, new customer development is not as expected, the measurement has a certain subjectivity, the risk of brain drain.
