Main points of investment
Investment logic: the company is a high-quality enterprise in the field of domestic automotive fine chemical industry, with a wide range of products, and cooperates with international chemical giants with strong product competitiveness and steady development of downstream customers. The company actively expands the automotive aftermarket business and promotes the rapid development of the aftermarket.
Automotive fine chemical quality enterprises, customer development and steady development. The company's fine chemical business includes 11 categories of products, such as antifreeze, brake fluid, engine oil, automatic transmission oil and so on. The company maintains long-term and stable cooperation with BASF, DuPont, Dow Chemical and other international chemical giants, leading product technology and competitiveness. The company adopts the mode of "close to the factory base" and builds the factory close to the whole car factory. at present, the company has four bases in Changchun, Shanghai, Chengdu and Foshan. Qingdao Delian will be put into production in 2019, and other factories in Wuhan are under construction.
In terms of customers, the company already has 52 European and American, Japanese and independent brands, including 13 European and American brands, 4 Japanese brands and 35 independent brands. At the same time, while ploughing deep into the traditional field, the company has actively expanded the field of new energy vehicles. The company already has 12 new energy businesses of traditional automakers and 12 new Internet car businesses. And got the fixed point of Tesla, Inc. after-sales project in 2017, and passed the audit in the same year. The corresponding order of Tesla, Inc. after-sales project has been obtained in 2018, and it is expected to be the first batch to enter Tesla, Inc. pre-installation supply system in 2019.
After cutting into the field of solid waste recovery and automotive electronics in the market, the main industry will develop steadily. The number of cars in China is more than 200 million, which provides a huge space for the development of the automobile aftermarket. In 2015, the company entered the Chinese automobile post-market with the help of Delphi car protection, and by 2018 it had more than 500 regional operating service providers and developed rapidly. Recently, Shanghai Taihao Technology, a supporting company of tire pressure monitoring system in automobile preloading market, has successively invested in Fukuda Information, a dangerous waste recycling company in the automobile market, and opened the road of horizontal layout and integration, with a sound investment style, which is highly consistent with the main business and strategic direction, reflecting the company's mature investment philosophy and sound management style.
Profit forecast and investment advice. The company is an excellent enterprise in the field of automotive fine chemicals, at the same time, mergers and acquisitions actively expand the post-market business, business coordination to ensure follow-up development. Excluding mergers and acquisitions, it is estimated that the return net profit of the company from 2019 to 2021 is 1.6 billion yuan, the corresponding EPS is 0.22 billion yuan, and the corresponding PE valuation is 22 times, 20 times and 18 times respectively, maintaining the "overweight" rating.
Risk tips: post-market business development is not as expected, upstream raw material prices increased significantly, new energy vehicle customer development is not as expected and other risks.