Events:
The company recently released its mid-year report for 16 years: operating revenue was 256 million, up 11.73% year-on-year, and net profit was 61.69 million, up 31.44% from the same period last year.
CIC's point of view:
The performance of this report is eye-catching, with a gross profit margin of 35.4%, the highest level in nearly three years, which strongly verifies that the increment of the company's performance comes not only from customer expansion (high-end model expansion), but also from the upgrading of product structure (the third generation LIN bus regulator). At present, the customer certification of the company's main products is smooth, and the new automotive high-power diode packaging project is being carried out in an orderly manner, which is expected to release some production capacity in the second half of the year. The new energy vehicle business has both internal and external extension, and the intelligent motor business is also expected to usher in a cluster breakthrough. at this stage, the value of the company is undervalued by the market, which traditionally values the company according to auto parts. however, we believe that the company is not only the leading target of A-share scarcity of automotive electronics, but also an upstart in the field of automotive semiconductor packaging.
Main points of investment:
Automotive power intelligent controller leader, product structure and customer resources have both made a breakthrough. The company is the world's fifth domestic first automotive power intelligent controller supplier, is A-share scarce automotive electronic leader. In the front market, the company's products have gradually expanded from domestic cars to joint venture brand models, and covered BMW-Mercedes-Benz and other international top car factories in the rear market, and the customer structure has been significantly improved. The company's third-generation LIN bus regulator is gradually increasing in volume. Compared with the traditional regulator, the unit price and gross profit margin of the LIN bus regulator have increased significantly. With the gradual increase in the permeability of the LIN bus regulator, the company is expected to open up new growth space.
Cut into the great blue sea of automotive semiconductors, the automotive high-power diode packaging project is progressing smoothly, and domestic substitution is expected to bring new growth space. The company originally had an automotive high-power diode packaging line with a production capacity of 7000 million units per year, and all the products were used for self-supporting. In the first half of the year, the company increased its production capacity to 230 million units / year through a fixed increase plan, and the project is expected to contribute 100 million yuan in net profit after reaching production. At present, the company's high-power diode major customer certification is smooth, and it is expected to start shipping in the second half of this year. We think the company is the target of A-share scarce automotive semiconductors. And the performance is flexible, there is a large expectation difference in the market at present, and it is expected to enjoy a large valuation premium in the future.
The new energy vehicle business has both internal and external extension, and it is expected to overtake at the corner. In the past 12 years, the company began to develop electric motor control and set up an independent business department. This time, an additional 120 million yuan will be invested in the motor and control system industrialization project, with a new production capacity of 36000 sets and a construction period of 1.5 years. after reaching production, it is expected to increase revenue by nearly 200 million yuan and increase profits by a total of 30.69 million yuan. Through the acquisition of a 51% stake in Shanghai Lixin, which focuses on second Motor Electric Control (performance commitment: 16-17-18, 16.5 million / 28.6 million / 41.8 million), the company has further strengthened its layout in the field of new energy. we expect that there are many synergies between the two sides in terms of customer technology, and the company's new energy business is expected to overtake around the corner.
The accumulation of intelligent motor technology is strong, and a number of products are expected to achieve cluster breakthroughs. The company has accumulated strong technology in the field of intelligent motor, and has strong technology and customer reserves in the product lines of intelligent wiper motor and control system, intelligent cooling fan motor and control system. At present, customer certification is smooth. It is expected to create a new business growth point and further enrich the company's product structure.
Investment suggestion: we expect the net profit for 16-18 years to be 125 million / 174 million / 229 million respectively, corresponding to EPS0.55/0.77/1.01 yuan. Due to the company's leading position in automotive intelligent power controller and the scarcity of automotive semiconductors, we think the company can be valued according to growth stocks, and the company's potential breakthrough area valuation center is high and the market space is wide, we give 17 years 45 times valuation. The first target price is 34.6 yuan, with long-term investment value, the company's employees hold a share price of 25.26 yuan per share, with a fixed price increase of 20.50 yuan per share, with a certain margin of safety, coverage for the first time, and highly recommended rating.
Risk hint: the market expansion of automobile intelligent controller is not as expected, and the customer certification of automobile high-power diode is not as expected.