The company is a rapidly rising automobile manufacturing enterprise, with three major automobile brands: Zhongtai, Jiangnan and Junma, and has eight vehicle production bases in five provinces and cities, covering sedan, SUV, MPV and new energy vehicle market segments. A total of 316000 passenger cars were sold in 2017, ranking eighth among self-branded car companies, of which SUV accounted for 80 per cent.
Continue to improve product power and open the road of high-end transformation. First, excellent product force. Zhongtai will launch 10 new cars from 2018 to 2020, of which the company will launch four blockbuster models: T300EV, T500, T800 and T900 in 2018. Second, good appearance, in the appearance to achieve the gorgeous transformation from imitation to independent design. Third, the configuration is rich, the newly listed models are rich in configuration, adding new technologies such as wireless charging, liquid crystal night vision system, electric suction doors, etc.; fourth, Zhongtai models often reduce dimension pricing, with obvious performance-to-price advantages.
Highly standardized suppliers and pragmatic and efficient marketing platform protect the company's great-leap-forward development. Suppliers: Zhongtai Automobile focuses on the global procurement system and actively establishes strategic partnerships with key suppliers. Germany Bosch, Germany Weisster, Johnson of the United States, Yanfeng Perry and other international top suppliers have been included in the list of Zhongtai Automobile suppliers. Dealers: Zhongtai has a total of 919 dealers in 2016, an increase of 34.7% over the same period last year. Zhongtai Automobile has established a long-term strategic cooperative relationship with dealers to help dealers improve business quality and service quality, and achieve a win-win situation with dealers.
Independent development of core components gearbox, engine. In order to get rid of external dependence, Zhongtai began to test the waters of independent research and development of core automotive components, and has made an important breakthrough. Jefu Transmission, a subsidiary of Tieniu Group, independently developed a seven-speed eDCT350, which will carry Zhongtai T700 and T800 models to meet market demand. The engine independently developed by Zhongtai is produced by Anhui Tongling Ruizhan Technology, a subsidiary of Tieniu Group, and its technology and production line come from Fiat.
New energy leader, hand in hand with Ford to set up a joint venture company to enhance brand value and car-building technology. Ford Motor has invested 4.5 billion US dollars in the research and development of electric models and the production of electric vehicle products worldwide, and will launch 13 electric vehicles on the global market in five years. The cooperation between Zhongtai and Ford will improve the brand image and vehicle manufacturing level of Zhongtai.
It is estimated that from 2018 to 2020, the EPS is 0.8,0.9,0.92 yuan respectively, and the corresponding PE is 8.7times, 7.8times and 7.6times respectively. Risk hint: sales of new models are lower than expected; progress with Ford is slow.