Incidents:
Nanjing Bangqi, a wholly-owned subsidiary, plans to establish a joint venture with Weiran Power, Nanjing Weibang, which is mainly engaged in R&D, production and sales of new energy vehicle components such as pure electric vehicle transmissions. The joint venture plans to begin mass production in 2019 and form a production capacity of 200,000 sets by 2020. In addition, Nanjing Bonqi and Weiran Power will also share their respective R&D technical resources and business channels in the field of transmissions to strengthen cooperation in electrified transmission products.
Connect to NIO Auto and power electric vehicle transmissions
Weiran Dynamics Systems XPT NIO Drive Technology is a motor electronic control supplier affiliated with NIO Auto. After Nanjing Bonqi and Weiran Dynamics set up a joint venture this time, it is expected that the pure electric vehicle transmissions developed and produced by the joint venture will be compatible with NIO Auto in the future. In addition to the ES8, which is already on the market, NIO Auto will also have new energy products such as ES6 in the future. With the release of NIO's successor products, the joint venture's 200,000 production capacity is expected to be fully utilized, bringing rich investment benefits to the company.
Complementary advantages enhance Bonzie's research and development level in new energy
Weiran Power has the ability to comprehensively design and develop electric drive systems. Its products, the EDS electric drive system and ESS energy storage system, are currently installed on the ES8. Bonzi has rich experience in automobile transmission system design and manufacturing. On the one hand, the cooperation between the two will help speed up Bonzie's layout in the field of electric vehicle transmissions, and can also provide excellent electric vehicle transmissions for NIO Auto's products. Furthermore, through cooperation with Weiran Dynamics, Bonzi can rapidly improve its research and development level in BMS and other fields, meet the development needs of the NEV market as soon as possible, and continuously enhance its advanced technological advantages and core competitiveness.
Accelerate the deployment of new energy sources and continue to increase high-end manufacturing. The company can look forward to the future
Tong and Weiran Dynamics established a joint venture, which, on the one hand, solved the disadvantage that Bonzie's main business was too concentrated on CVT and increased its ability to withstand risks; on the other hand, it could also rapidly improve Bonzi's technical level in the field of new energy and continue to increase high-end manufacturing. We expect the company's EPS to be 0.47/0.54/0.62 yuan in 2018-2020, and the corresponding PE will be 22.3/19.2/16.8 respectively. Maintain an “increase in holdings” rating.
Risk warning: The cooperation between the two parties fell short of expectations, and the progress of electric transmission R&D and sales fell short of expectations.