Summary of the report:
Domestic rectifier leader, leading market share. The company was listed in 2012, the main products are automotive rectifiers and regulators, leading domestic market share, with a large number of high-quality customers.
Strategic positioning is clear. The company's development strategy is located in three directions: the continuous leadership of rectifier and regulator business, the opening of hundreds of billions of market space by intelligent motor control, and new energy motor control to meet the era of high-speed growth of new energy vehicles.
The penetration improvement of LIN bus products comes from the popularity of high-end cars to low-end cars, as well as the popularity of domestic self-brand vehicles. The company's overseas customers are also expected to enter the AM new equipment market from the OE aftermarket.
The company will increase the production capacity of 230 million high-power diodes in the early stage, and the external scale sales will be realized in the future, and the contribution performance will continue to grow.
The smart motor business suffered a small loss in 2016 and is expected to break even in the future. The production capacity of new energy motor control system is expected to reach production in the second half of 2017.
Policies drive the accelerated expansion of the TPMS market. In September, the Ministry of Industry and Information Technology issued a national mandatory standard for tire pressure monitoring, and there is much room for improvement in domestic TPMS permeability. There will be a certain transition period for the implementation of the mandatory standard, and it is expected that the TPMS penetration rate of the domestic new car OE market will increase significantly after 2017.
The company has invested in TPMS research and development since 2012, has mature products in the field of direct TPMS, and is striving to enter the supplier system of vehicle manufacturers. The company's TPMS products are expected to benefit from the outbreak of the industry.
Company profit forecast and investment rating. The company is the leader of domestic rectifier, high-power diode, intelligent motor control, new energy motor control and TPMS are expected to contribute to new performance growth points.
It is estimated that the net profits of shareholders belonging to listed companies from 2016 to 2018 are 92 million yuan, 131 million yuan and 167 million yuan respectively, and earnings per share are 0.40 yuan 0.57 yuan and 0.73 yuan respectively. Give the company a 6-month target price of 54.15 yuan and give the company a "highly recommended" rating.