[investment points]
Focus on needle roller bearing subdivision field, "vertical integration" production capacity of the whole industry chain. The company has achieved the first position in the domestic industry in the field of needle roller bearings. 2022H1, the company's operating income in the field of new energy vehicles is eye-catching, accounting for 7.46% in the first half of 2022, up from 4.04% in 2021. The company's operating income in this field in the first half of the year was 20.17 million yuan, an increase of 67% over the same period last year. Sales of new energy automobile parts products are growing rapidly. At present, the international market is occupied by eight major bearing enterprises in Sweden, Germany, Japan and the United States, accounting for more than 70% of the market share of the global bearing industry. In the future, the company still has a broad alternative space in the global market.
Actively integrate industrial resources and invest indirectly in Nashi cars. In August 2022, the company and other investors jointly invested in the establishment of Huzhou Hongtian equity investment partnership, with a total contribution of 355 million yuan, and the company contributed 100 million yuan with its own capital, accounting for 28.169% of the total subscribed amount of Huzhou Hongtian. The partnership mainly invests in Jiaxing Xinzhu equity investment partnership and indirectly invests in Nahu automobile through Jiaxing Xinzhu. At present, the company is promoting the business cooperation with Naha Automobile, which is also interested in expanding the upstream new energy automobile parts assembly. Looking to the future, the company is expected to give full play to the advantages of the production capacity of the whole industry chain and the strict standards of the quality control system, superimposing the advantages of strong demand in the automobile market and rapid increase in production capacity, through the expansion and extension of the industrial chain, improve industrial coordination with new energy vehicle plants to achieve industrial integration, technology upgrading and brand upgrading.
The capital increase holds Shanghai Tencent, and the main business is expected to achieve two-wheel drive. The chip currently developed in Shanghai is mainly for TWS wireless Bluetooth headsets, and the product positioning is used in middle and high-end Bluetooth wireless headsets. In December 2021, its new generation of TWS intelligent Bluetooth voice SoC chip has completed taping, packaging and major testing, and the core indicators test results meet the expected design requirements; customer test certification is currently under way, and synchronous optimization phase, is expected to be mass production by the end of 2022. In addition, Shanghai Jingcheng also has intelligent voice, WiFi, GNSS and other intelligent things and intelligent audio wireless connection technology, committed to 5G, accurate positioning, AI voice interaction and other AIoT areas to provide high-quality SoC chip products and services, can be widely used in smart speakers, intelligent home appliances, health and medical products.
With the transformation and upgrading of intelligent manufacturing, industrial robots are developing rapidly. The main products of the company in this field are needle roller bearings and cage assemblies. A six-axis industrial robot, for example, needs 5 RV reducers and 1 harmonic reducer, and as transmission and load-bearing parts, the replacement life of the reducer is usually about 2 years, and the overall market demand space is broad in the future. The company has been supplying Global Technology, which ranks first in the field of industrial robots in China since 2017, and other mass production customers include Qinchuan Machine tool, Wenzhou Hengfengtai, Yantai Aidi, Nanjing Nan Gao Tooth, Kunshan Huaheng and other customers; currently, the customers in the sample test are Changzhou CRRC, Tianjin CSR, Zhongdade, Nantong Zhenkang, Zhuhai Gree, Guangzhou Haozhi, Taizhou Tailong and other customers.
[investment advice]
We estimate that the company's operating income in 2022, 2023, and 2024 will be 692, 823, and 980 million, respectively, and the estimated net profit from the return of the company will be 2.56 million, 0.50, 0.60 and 0.74, respectively, respectively, and the corresponding PE will be 24-20-16. Taking into account the vast market space for new energy vehicles in the future, and the integrated circuit business is still in the initial stage of growth, based on the 2023 given 33 times the target price of PE,12 within a month: 20 yuan, upgraded to the "buy" rating.
[risk Tip]
The progress of chip research and development is not as expected.
Downstream customer product verification is not as expected.
The demand of automobile terminal is lower than expected.
The progress of industrial control intelligence is not as expected.