Event: Hua an Xinchuang issued a "notice on the proposed joint venture with Shentianma". The company and Shen Tianma plan to jointly fund the establishment of a joint venture company, named Jiangsu Tianhua Automotive Electronic Technology Co., Ltd. Of these, the company contributed 45 million yuan, with a shareholding ratio of 45%, while Shen Tianma contributed 55 million yuan, with a shareholding ratio of 55%.
Successfully bind the two major domestic screen manufacturers in the form of a joint venture, and use this as the cornerstone to accelerate the transition to Tier1:
As early as October 2021, the company announced that it would form a joint venture with BOE Jingdian with a shareholding of 85%. Superimposed on this joint venture with Shenzhen Tianma, we believe that the company has successfully established a joint venture with two major domestic vehicle screen manufacturers (according to Omida statistics, among the global car panel suppliers of 2021H1, Shenzhen Tianma has the first share with 13.9%, while BOE has the fourth with 11.6%. A strong binding relationship is implemented At the same time, under the influence of multiple factors such as the continuous disturbance of the epidemic situation and the production reduction of Taiwan screen factories in Japan and South Korea, whether the stability and sustainability of vehicle panel supply can be fully guaranteed will become one of the important core competitiveness of screen display system suppliers. Therefore, taking the lead in card position upstream screen factory resources will become an important cornerstone for the company to transform from Tier2 strategy to Tier1 and fully enjoy the dividend of large screen and high-end trend in the vehicle display system industry.
Tier1 has plenty of orders on hand, and the production line is about to produce. According to the previous announcement, the company will achieve a historic breakthrough from 0 to 1. According to the previous announcement, the company already has more than 10 billion yuan in-hand orders, of which it has successfully won a number of traditional mainframe factories and new power screen display system projects as Tier1. At the same time, the company's first Tier1 production line (temporary plant) is expected to be officially put into production in September this year, indicating that the company will officially move towards Tier1 and achieve a historic breakthrough from 0 to 1 in the field of complete vehicle screen display system. In addition, the design planning of the company's 155 mu self-built main factory building has also been completed and is expected to be put into production by the end of 2023, when the company's intelligent cockpit display module and screen display system production line will be further expanded. and take this to extend the intelligent cockpit domain controller products, advanced auxiliary driving system, intelligent network connection terminal and other products manufacturing production line.
Investment suggestion: we expect the company's return net profit from 2022 to 2024 to be 0.82,1.95 and 314 million yuan respectively, corresponding to the current market value, the PE is 70.2,29.5 and 18.3 times respectively, maintaining the "buy-A".
Rating, 6-month target price of 84.95 yuan per share.
Risk hint: the shortage of cores in the automobile industry is aggravating; the progress of capacity launch is not as expected.