Company introduction: domestic middle and high-end passenger, domestic and foreign industry leader

Beijing Weikawei Automobile parts Co., Ltd. (hereinafter referred to as Jingwei Co., Ltd.), founded in 2002, is a Sino-German joint venture manufacturer and service provider of domestic and foreign parts systems. the main stocks are Sinovel Investment Bank and the famous German auto parts company Ericsson. The actual controllers of the former are Li Jianyu and Luo Zhijin, while those of the latter are the German family, which currently holds 30% and 25.2% of the company respectively. The company was listed on the small and medium-sized board IPO of the Shenzhen Stock Exchange in February 2012, raising 1.4 billion yuan. At present, the company's main responsibility extends to four major departments: internal and external, automobile, intelligent equipment and new energy automobile.

High growth of domestic and foreign banking services and strong profitability

In terms of domestic and foreign business, on the basis of the introduction of advanced technology from Germany, through digestion, absorption and renewal, the company has gradually improved and improved industrial technology, and has acquired the capacity of synchronous development, overall supporting plan design and modeled supply. Since then, it has confirmed the company's leading position in both domestic and foreign companies, especially in the luxury alloy industry. The main customers are concentrated in FAW, morning, Shanghai, Beijing, Shanghai GM, FAW Tiantian, Changan Ford and other well-known rectifiers. The top five customers account for more than 70% of the company's operating income.

Benefiting from the rapid growth of China's automobile industry, especially the medium-and high-level file multiplication industry in the past, the company's internal and external business has grown rapidly, with a combined growth rate of 30.4% and 20.3% respectively for total revenue and profit from 2008 to 2015. Except for the sharp increase in labor costs and other factors such as the completion of business operations of Beijing Zhongli spare parts Company in 2013, profit has declined, and its turnover has maintained a positive growth every year. The company's profitability is strong, the gross profit margin is higher than 30%, and the gross profit margin remains above 10%, maintaining a leading position in the industry, which is about double the industry average. With the continuation of China's auto industry upgrading and the steady growth in the volume of medium-and high-end and luxury cars, we predict that the company's domestic and foreign business is expected to maintain a healthy growth of about 10% in the future.

At the same time, we will expand the services of automobiles, new energy and new energy, and open up a long space.

As the upstream of the automobile parts industry, the automobile parts industry has also increased its competitiveness in recent years in line with the overall growth rate of domestic steam production. Integrating resources of all parties, expanding the industry, and increasing the added value of its products have become the main trend of the automobile parts industry, and Jingwei shares is also one of them. After listing in 2012, the company acquired a large number of auto parts companies through a large production capacity model, enriched product types, refined product structure, and strengthened the coordination with the whole company.

It is worth mentioning that in terms of new sales, the company is also speeding up the strategy. In 2014, the company acquired 100% of the shares of domestic auto power companies through a total of 1.13 billion dealers through the "IPO + bonus" approach, and Foda's Fufugen father and son held 15.5% of Jingwei shares. Foda's intelligent electronics integrated control industry is developing rapidly, and we expect that under the current increase in the transmission rate of steam turbines, we are expected to realize a more comprehensive import substitution in the future.

In November 2015, the company sold 200 million yuan of Changchun New Energy Automobile Co., Ltd. in November 2015, the company sold 20% of Changchun New Energy Automobile Co., Ltd. in November 2015, the company sold 200 million yuan of Changchun New Energy Automobile Co., Ltd. in November 2015, the company sold 200 million yuan of Changchun New Energy Automobile Co., Ltd. in November 2015, the company sold 200 million yuan of Changchun New Energy Automobile Co., Ltd. in November 2015, the company sold 20% of Changchun New Energy Automobile Co., Ltd., and in December, the company paid 550 million yuan to acquire 48% of the shares of Shenzhen Wuzhou Automobile Co., Ltd.

Recommendation & valuation

We think that the new energy industry will certainly be a drag on the company's production in the short term, but with the upgrading strategy landing one by one, the company's long-term development space is very tight. Our company's earnings per share for 2016 / 2017 are 0.83 yuan 1.09 yuan respectively, with a target of 19.3 yuan corresponding to 18 times the expected price-to-earnings ratio of 23 cents per share for 2016 / 2017 for the first time. (as of 6 February)

Cymbals

The degree of mid-and high-level files multiplying "line scenery" has declined beyond expectations.

New energy automobiles and other new services to promote the expected level of treatment