Deep accumulation of electric drive technology, cut into the great vision of passenger cars. Founded in 2005, the company started from the power system manufacturing of commercial vehicles and field vehicles, and cut into the production market of motor controllers, chargers, DC-DC converters, electronic throttle pedals and other products for field electric vehicles in 2009. After ten years of research and development, the company launched three-in-one power assembly and drive assembly in 2019, which opened the prelude to product integration. In the following three years, the company has launched the third generation power assembly, six-in-one fully integrated assembly, "integrated core" drive assembly and other products, continue to achieve a high degree of integration of parts and components. Due to the mass production of new products and the rapid growth of designated customers, the operating income in the first half of 2022 was 869 million yuan, an increase of 177.6% over the same period last year. The gross profit in the first half of 2022 was 126 million yuan. Due to the change in product structure, the gross profit margin dropped slightly to 14.5%.
Product upgrades add to the high demand, opening a broad curtain. The company actively develops silicon carbide motors and highly integrated electric drive system products. The application of silicon carbide expands the high efficiency range of motor controller by 5%, and the temperature rise is excellent; the highly integrated electric drive system can share shell coupling and cooling system, which can effectively reduce the volume and weight of electric drive system, increase power density, apply scope, and reduce the procurement and manufacturing cost of parts. The improvement of the integration of drive system and the use of silicon carbide have led to the downstream market space of motor controller enterprises. The average unit price of Inball motor controller in 2021 is 710 yuan per set, while the unit price of drive assembly products is 6631 yuan per set. In August 2022, the price of a 1200V single-tube IGBT in Infineon is 41 yuan and the module price is 275 yuan, while the price of 1200V single-tube silicon carbide MOS is 140 yuan and the module price is 640 yuan. The price of silicon carbide power devices is about three times that of IGBT devices. It is expected that with the continuous improvement of the permeability of integrated products, the market space of motor controller and electric drive system of new energy vehicles will reach 135yuan and 53.8 billion yuan respectively in 2025, with an average annual compound growth rate of 19.75% and 62.47% respectively from 2021 to 2025.
The mid-stream pattern is scattered, and the company accelerates technology iterations to win in chaos. The sales volume of the whole vehicle manufacturers represented by BYD, Tesla, Inc. and NIO Inc. mainly follows the whole vehicle, and the sales of motor controllers are adequately guaranteed. Foreign / joint venture motor controller manufacturers represented by Nissan, United Automotive Electronics and Bosch have good reliability, high power density and strong controller algorithm. Local motor controller manufacturers were in a weak position before, but relying on their own cost advantages, rapid response ability and sales volume of major domestic new car building forces, superimposed their own rapid research and development of highly integrated, silicon carbide, double-sided water cooling and other technologies, supporting models are also gradually changing from low-end to high-end, of which Inball is a typical representative. Through self-developed single-tube parallel connection, Inbauer can further reduce the cost of technology while improving product performance, and the weight, volume and cost of the "integrated core" powertrain are all more than 20% lower than the current mainstream products. Research and development of "Integrated Core" 2.0 product is progressing smoothly, this product uses advanced technologies such as SiC single-tube parallel motor controller and flat-wire motor, which reduces the volume of electric drive system, improves energy density and system efficiency. It is expected that after mass production, "Integrated Core" 2.0 will further enhance the positioning of Invor and drive profitability growth.
Investment suggestion: from 2022 to 2024, we estimate that Inbauer will achieve operating income of 22.71max 39.59 / 6.199 billion yuan and net profit of 1.28pm 214,534 million yuan. The corresponding EPS will be 1.29Compare 3.23 yuan per share, and the closing price on September 22, 2022 will correspond to 64.69 PE 38.66max 15.46 times. Inball is the domestic leader of single-pipe parallel technology, the cost of single-pipe parallel technology is low, and it is a better route for A00 and A0 models which emphasize the cost, and the technical barrier of single-pipe parallel is high and the competition pattern is good. From the point of view of the middle and high-end market, cutting-edge technologies such as silicon carbide and flat-line motors help it to introduce customers, and it has won the fixed point of Hezhong New Energy and XPeng Inc., with great potential for future development. The company's fixed-point models and orders are growing rapidly, the revenue is about to be released, the product positioning is constantly improving, the profit space is thickened, and the high growth of future income and performance has strong certainty. For the first time, coverage gives an "overweight" rating.
Risk hints: raw material prices fluctuate, products break up less than expected, and capacity expansion falls short of expectations.
