Report guide
The company's products brake discs and brake pads are the key components of the automobile braking system and are replaced frequently. The main sales markets cover the OEM market and the AM market, with huge market space. The company is the leading enterprise in this subdivision industry in China, with a high share in the export market and strong comprehensive competitiveness. The steady growth of global car ownership, the rapid growth of domestic car ownership and the expansion of OEM business will promote the rapid development of the company's business.
Main points of investment
The large scale of global car ownership supports the steady development of the company's business. Global car ownership is large and growing steadily. The AM market for brake pads and brake discs is huge, which is expected to reach more than 70 billion yuan in 2021. The company accounts for 15% of China's export market share and has a stable customer base. With the quality and price advantages of the company's products, the market share is expected to further increase.
The rapid growth of domestic car ownership brings new opportunities for the company's AM business. In the next few years, the growth rate of China's car ownership will be as high as 6.8%, so that the number of cars that need to replace brake pads and brakes every year shows a rapid growth trend. It is estimated that the replacement scale will reach 52.6 million sets and 2618 million sets by 2023. The company has a strong product quality advantage and brand influence, and the market share is expected to increase gradually.
Automobile and Rail Transit OEM Product Business Development Co., Ltd., after supplying Sinotruk since 2015, it has been fully recognized by customers and certified by Daimler in 2018, achieving a breakthrough for foreign brand customers. The company is expected to become a supplier to more mainframe factory customers and rapidly expand the scale of OEM business. The company has passed the certification of EMU braking products and is expected to enter the relevant fields of the rail transit industry and further expand the development space of the company.
Profit forecast and valuation
It is estimated that the company's earnings per share from 2019 to 2021 will be 0.83 soybean 0.98 million 1.23 yuan, an increase of 101.48 percent 18.71 percent and 25.78 percent over the same period last year. The company has a certain brand advantage in the subdivision industry, and the export business has strong competitiveness. Considering the company's competitiveness and industry status, it gives the company an "overweight" rating for the first time.