Summary of the report:
China Independent Automobile Design leading Company. 1) at present, nearly 400 models have been successfully developed, with a total sales volume of more than 10 million models, establishing cooperative relations with more than 60 customers, taking the lead in obtaining orders from NIO Inc. and XPeng Inc., and enhancing the competitive advantage in the automobile design market; 2) equity incentives are in place. The company implemented equity incentives three times in 2011,2015 and 2020 to stimulate the ability of team cooperation. 3) revenue and net profit have maintained an increasing trend in the past five years, and the average gross profit margin has been maintained at about 30%.
Create a "design and development + parts manufacturing + forward-looking layout" business layout. 1. Automobile design: new forces continue to enter the bureau, and their design requirements will promote the development of the automobile design industry; the accelerated launch and renewal of new energy models will lead to an increase in demand for revamped development. The automobile consumer population continues to be younger, at the same time, the proportion of female users buying cars is increasing year by year, and the scale of the vehicle design market continues to expand. As an independent third-party design company, it has a high degree of marketization, strong independence, strong professionalism and rich design experience. This will continue to consolidate the company's design leading position. 2, parts manufacturing: with the full volume of existing orders and the implementation of potential orders, it is expected to become the second growth curve of the company's performance in the future. 3. Forward-looking layout: the company has completed the cloth in the skateboard chassis of the important trend of automobile intelligent development and the solution of intelligent automobile digital system. Chassis in 2022 capital gecko technology launched skateboard chassis technology for forward-looking layout, internal self-development super chassis project. The new energy intelligent platform development business launches software and hardware such as SOA service platform (SOA architecture, SOA developer platform and development tools, etc.), intelligent driving platform, intelligent module platform, intelligent control platform and intelligent network connection terminal.
Magna is optimistic about the long-term growth of independent third-party design companies. Magna from four aspects, deducing the medium-and long-term development space of Arter: 1, the whole industry chain of vehicle design business covering from platform research and development, internal and external system design to engineering test; 2, from design to design + manufacturing, breaking through the growth ceiling; 3, constantly expanding business layout through foreign investment; 4, trying vehicle ODM to open up the whole process of design-parts-vehicle manufacturing.
To sum up, we estimate that the company's revenue in 2022-2024 will be 1.417 billion yuan 1.998 trillion yuan, and the net profit of its parent will be 265,781,462 million yuan, corresponding to a 14.19 times PE, which is covered for the first time and given a "buy" rating.
Risk tips: core customer operation is not as expected, customer new model iteration speed is lower than expected, parts downstream customer sales are not as expected, COVID-19 epidemic situation is repeated, and so on.