Investment logic
Tesla, Inc. 's industrial chain is pure and objective. The company's automobile panel mold products are in a leading position, and the supply income to Tesla, Inc. has exceeded 50 million yuan. Moreover, the company provides Truss with the transformation from mold products to mold technical services, which have high profitability and make a good contribution to the company's performance. We believe that the upgrading of the company from product manufacturing to product services will not only enhance profitability, but also enhance the stickiness with Tesla, Inc., which is conducive to the company's subsequent provision of more diversified products or services, thus profoundly benefiting Tesla, Inc. 's high growth. It is the pure target of Tesla, Inc. 's industrial chain.
Military electronics, four cards are complete. The company acquired a 55% stake in Tianjin Quanhong Electronics in January 2017, expanding in the military field. Tianjin Quanhong Electronics is mainly engaged in the development and production of military electronic products, with weapons and equipment scientific research and production license, second-class security qualification, equipment contractor license, weapons and equipment quality system certification and other qualifications. As of December 31, 2016, Quanhong had total assets of 88.63 million yuan, net assets of 56.37 million yuan, operating income of 45.22 million yuan and net profit of 4.05 million yuan. After the company took over Tianjin Quanhong Electronics, the management level has been greatly improved, and the performance has improved significantly.
It makes little contribution to the overall profits of listed companies in the short term. The company will make use of its existing customers, military technology and qualification advantages, combined with listed companies'R & D and advanced equipment advantages, further expand Quanhong Electronics, and through this platform to better open up and serve the military industry market, support the national defense and military industry.
Grasp the opportunities for the development of new energy vehicles, the main business sound. New energy vehicle business supporting Tesla, Inc. and other customers, orders continue to grow. Up to now, the company has accepted orders for new energy vehicles of more than 300 million yuan, and the main customers are Tesla, Inc., Guoneng Automobile, NIO Inc. Automobile, United Motor, New Ocean and so on. The increasing demand for new energy vehicles also brings opportunities for the company to participate in its assembly, welding and stamping business. The company's German subsidiary has made continuous losses at the beginning of its establishment, and is expected to improve significantly in 2017 and is expected to turn losses into profits. Stamping business customers are mainly Great Wall Motor, BAIC, brilliance BMW, etc., with the hot sales of Great Wall Motor, steady growth is expected in 2017.
Investment suggestion
Tesla, Inc. pure target, military electronics four complete, actively extend the industrial chain, and layout of emerging industries, performance valuation is expected to improve. It is estimated that the EPS of the company from 2017 to 2019 is 0.22,0.28,0.35 yuan respectively. Buy rating, raise the 6-month target price to 10 yuan.
Risk hint
The number of new car developments fell short of expectations.
The development of overseas business is not as expected.