Event: the company signed the Strategic Cooperation Framework Agreement with Nanjing Iveco.
The company announced on November 3 that the company and Nanjing Iveco signed a "Strategic Cooperation Framework Agreement". Nanjing Iveco agreed to regard the company as the core supplier of its diesel engine products, and the two sides will further strengthen the business cooperation between Yuejin platform light truck and light passenger (various engines with 1L-5L displacement). And speed up the progress of C100/C300/C500 and other vehicle projects (involving 2.5L, 2.8L and 4.3L country 4 engines and Euro 5 engines).
After the new chairman took office, the group internal support won the first battle, and the internal allocation rate is expected to be further improved in the future.
The signing of the "Framework Agreement" is the first move by the company's new chairman, Mr. Lan Qingsong. We believe that the signing of this "framework agreement" is the first battle to break the situation of supporting projects within the company group after Mr. Lan Qingsong took office, and the self-matching rate within SAIC will be greatly increased in the future. There are two main reasons: 1. Different from Xiao Dong's early days, the company has completed the layout of its internal supporting product line. 2. Due to the small sales volume of SAIC commercial vehicles and no contribution to profits, the possible impact of adjusting the internal matching rate is negligible compared with the reconstruction of the commercial vehicle supply chain strategy of the group, and the group has the motivation to improve the internal matching rate.
The supporting facilities within the group contribute to the elasticity of sales volume.
According to our grassroots research, Yuejin brand light truck used to have an external matching rate of more than 90%, mainly supporting Chaochai, Yangchai, Yunnei, Quanchai and Cummins products. The company's existing 2.5L, 2.8L, 4.3L engines cover about 60% of Yuejin light truck sales. The broken situation within the group will contribute to the sales elasticity of the company.
Investment advice.
Without considering the increase in the supporting share within the group, we expect the company's EPS to 0.20,0.32 and 0.42 yuan in 14-16 years. The company benefits from the rapid increase in the penetration of passenger car superchargers, the investment income is expected to increase significantly, the appointment of the new chairman is expected to bring positive changes to the company, and the supporting facilities within the group contribute to sales elasticity and maintain the "buy" rating.
Risk hint.
Sales of new products fell short of expectations; macroeconomic sentiment declined.