The company issued an announcement and recently received a bid winning notice confirming that the company won the bid "Guangzhou Automobile Toyota Motor Corp Co., Ltd. Thanksgiving Hanlanda activity-Tire pressure Monitor Purchasing Project". The purchase was made by Guangzhou Automobile Toyota with a winning price of 57.6 million yuan and an estimated purchase volume of 200000 sets. The cycle is 2017-2018.
Forced installation of national policy standards will drive tire pressure monitors to flourish in the future.
In October 2017, the National Standardization Administration Committee formally approved the new standard, requiring all newly certified passenger cars in the Chinese market to install tire pressure monitors from January 2019, and from January 2020, all passenger cars in production began to install tire pressure monitors on a mandatory basis. National standards will drive the rapid penetration of tire pressure monitors in the pre-loading market, and the market is expected to maintain a high growth rate before 2021.
Integrate Hangsheng Industry with mergers and acquisitions and actively expand the market of tire pressure monitors
Due to the early implementation of national mandatory standards in the United States and European countries, foreign enterprises also have certain first-mover advantages and stable customer relationships in this field. At present, Suoling shares have a small market share and less customer relationship accumulation in this field. The company actively laid out this emerging market and acquired Shanghai Hangsheng Industry. Hangsheng Industry is committed to the development and manufacture of vehicle front equipment, and has more mature market experience and technical strength in the field of tire pressure monitoring. Customers include Yutong bus, Sinotruk and other domestic first-tier commercial vehicle factories.
The successful implementation of this project will help to enhance the brand influence and product competitiveness of the company, and help the company to obtain a long-term and stable follow-up project in the preloading process of GAC Toyota tire pressure monitoring in the future. and further expand the customer relationship with GAC to lay a solid foundation for expanding the scope of business cooperation in the future.
The forecast results for 17-19 years are 0.38 yuan per share, 0.55 yuan per share and 0.73 yuan per share respectively.
Due to the uncertainty that the bid has not yet been signed a formal contract, the profit forecast will not be revised for the time being, with revenue of 12.7,17.7 and 2.47 billion yuan respectively, net profit of 1.58,2.33 and 307 million yuan respectively, and current price corresponding to 38,26,19 times of PE, taking into account the rapid growth of the company's intelligent business and the rapid growth of the performance of the sub-company, maintaining the "Buy" rating.
Risk hint
The winning bid has not yet signed a formal contract, there is still uncertainty; the risk that the performance of the acquisition company is lower than expected; the risk that the acquisition company integration is not as expected.
