Main points of investment:
Vehicle Charger (OBC) has been designated as the exclusive global supplier of MINI Cooper electric vehicles. The company announced that the holding subsidiary Meta was designated by Germany's BMW as the global exclusive supplier of MINI Cooper brand electric vehicles OBC. Considering that MINI Cooper is the first fully electrified brand of BMW, we believe that the market space of this order is significantly larger than that of BMW i3, with an estimated total life cycle order of about 100 million euros and a peak year of about 20 million euros.
OBC has core competitiveness and will become a global leader. OBC is the core component of the standard electric vehicle, and the company's products have core competitiveness in performance, reliability and cost. We have successively won the project orders of BMW i3, PSA global new energy platform, SAIC, Dongfeng, North and South Volkswagen and MINI Cooper. Considering that the downstream customers are the world's leading new energy vehicle companies, we believe that the company will grow synchronously and is expected to become a global OBC leader in the future.
Keshiderun high-end car wiring harness began to volume. Keshiderun has won orders for middle and high-end car wiring harness, such as FAW-Volkswagen and Beijing Mercedes-Benz, and has two factories in Jiangmen and Changchun. In 2018, FAW-Volkswagen products will be launched in the big year, and it is expected to match a number of models to drive the joint venture to expand the middle and high-end wire harness.
TypeC connectors lead the domestic market and are expected to participate in global competition. The company's TypeC connector is highly competitive and has supplied a large number of major domestic consumer electronics manufacturers. At the same time, the company is actively bidding for global consumer electronics giants, which is expected to provide increments for the expansion of consumer electronics business.
Profit forecast and investment advice. Car charger (OBC), car wire harness and TypeC connectors are globally competitive, and the pre-R & D investment has been ordered, which is about to enter the performance release period. at the same time, Liuzhou Shuangfei has completed its acquisition in September, which will significantly increase its performance. It is estimated that the EPS from 2017 to 2019 will be 0.56,1.03,1.37 yuan respectively. With reference to the valuation level of companies in the same industry, and considering the company's strategic and technological leading position in the global market, the company will be given a 30-fold PE in 2018 with a target price of 30.90 yuan, maintaining a "buy" rating.
Risk hint. 1. Systemic risk; 2. Sales of supporting models fall short of expectations.
