Main points of investment
Event: a few days ago, we exchanged views with Mr. Dong of Guihang about the company's business and future development.
As a well-known enterprise of auto parts, it enjoys the development dividend of automobile industry. The company is a leading enterprise of automobile sealing strips, mainly producing sealing strips, car locks, wipers, aviation products and so on. We expect that total car sales will continue to grow at a high speed in 2014, while the number of cars in China will gradually increase, driven by the demand for new car production and aftermarket maintenance business in the automobile industry. the company's product demand market space is expected to continue to grow steadily.
The fund-raising project is progressing smoothly and the production capacity is gradually released. The company's fund-raising project is progressing smoothly, the production line transformation project of the two projects of sealing strip and aircraft is expected to be accepted and expanded by the end of the year, the two projects of radiator and electronic and electrical switches are carried out in an orderly manner, and the company's production capacity is expected to gradually increase and expand the company's production scale. at the same time, it can effectively improve the product structure and enhance competitiveness.
Merger and acquisition of enterprises with complementary customer resources to improve customer base. Through the acquisition of Beijing Daqi Air conditioning Co., Ltd. and the proposed acquisition of Hebei Hongtu Auto parts Co., Ltd., the company is expected to gradually enter Visteon's supply system and expand the company's customer base.
Valuation and rating: the stable development of the automobile industry opens the demand space for the company's products, and the company achieves product upgrading and customer base improvement through capacity expansion and mergers and acquisitions in the industry, but with the acceleration of the expansion of auto parts enterprises, the company is facing increasing competitive pressure. We expect the EPS in 13, 14 and 15 years to be 0.384, 0.427 yuan and 0.469 yuan, looking forward to the company's "internal expansion and external development" performance, but given the increased competitive pressure in the industry and the previous rise in stock prices, the company was given a "neutral" rating.
Risk hint: raw material prices rose more than expected, and the slowdown in macroeconomic growth led to insufficient demand from automobile companies.
