Summary of the report:
Core business share is firmly in the forefront, layout of interior decoration and fuel system accessories. The company's automobile oil level sensor ranks in the forefront of the industry, and the market share of sensors and accessories has been maintained at about 30% in recent years. It is one of the largest manufacturers of automobile oil level sensor in China. In addition to sensors and accessories, the company has also laid out fuel system accessories and car interior parts.
Vehicle networking has become a development trend, and the development prospect of vehicle sensor is bright. Vehicle networking has become one of the inevitable paths of automobile intelligence, whether the connection between the car and the vehicle or the connection between the various systems in the vehicle will make great progress, and the sensor is the most basic component of the vehicle networking system. The number will increase greatly. In 2017, the company won the right to develop new products for MQB level sensors, SGM258 level sensors and oxygen sensor resistors. With the increasing application of sensors in the field of the Internet of things, sensor technology will continue to innovate and develop, and the demand will continue to increase. According to BCC Research, the global sensor market is expected to grow at a compound growth rate of 11% from 2017 to 2021, and the sensor market has a broad prospect.
Domestic cars are booming, and the spare parts system is expected to benefit. The auto parts industry in which domestic companies are located is the upstream industry of the automobile industry, and the steady growth of automobile sales has directly led to the development of the auto parts industry. Especially with the breakthrough of SAIC, Geely, Great Wall and other independent models, the domestic parts system has also obtained more development opportunities. We believe that the company, as the leader of the oil level sensor with independent intellectual property rights, and the horizontal layout of fuel system accessories and interiors, will benefit a lot in this process.
Performance forecast: the company's core business development is relatively stable, taking into account the growth rate of the vehicle industry and the import substitution trend of domestic spare parts, we estimate that the company's operating income in 17-19 is 6.35,7.29,860 million yuan, EPS is 0.89,0.99,1.12 yuan, corresponding PE is 32.48,29.08,25.70.
Risk tips: business concentration is too high; raw material prices rise; outsourcing processing management risk.