Main points of investment
Deep ploughing power system, grow into a leading enterprise of electric drive assembly. Since its establishment in 2005, the company's deep ploughing vehicle power system has expanded from motor controllers, vehicle chargers and other single components to power assembly, electric drive assembly and "integrated core" multi-in-one products. from field cars and low-speed electric vehicles into the new energy passenger car market, up to now, the company accounts for more than 60% of the site car market and more than 20% of the A00 class new energy passenger car market, gradually growing into a leader in the field of electric drive.
Focus on single-pipe parallel route, rely on the cost advantage to quickly open the market. "cost reduction" and "performance improvement" have always been the core demands of new energy vehicles. Over the past 17 years, the company has focused on single-tube parallel routes. Compared with competitors, the volume of electric drive electric control products is reduced by 20-30%, the weight is reduced by 20-30%, and the power density is increased by nearly 30%. The cost is reduced by nearly 20%, and the flexible product layout can meet the diversified power needs of customers. A number of advantages drive the company's designated SAIC GM Wuling, Geely, XPeng Inc., Changan, Nezha, Jianghuai and other car companies.
After 4 iterations of the product, the "integrated core" leads to a simultaneous increase in quantity and price. Since 2009, the company has developed four generations of products, from single parts to three-in-one electric drive, to "integrated core" three-in-one, and then to "integrated core" six-in-one. The value of the company's products has increased from 1000 yuan to 8000-10000 yuan. Fixed customers from field cars to B-class cars to achieve a simultaneous increase in quantity and price, the future "integrated core"
The contribution of assembly product revenue and performance accelerated significantly.
The core team has a deep background and equity incentives stabilize the morale of the army. The founding team of the company comes from Xi'an Jiaotong University, has a technical background and has been in the industry for nearly 20 years. After listing, the newly introduced members are all from the world's leading enterprises, with a deep technical and industrial background. There are two equity incentives in 2020 and 2021 to give full incentives to the core team and technical R & D personnel.
In the hundreds of billions of electric drive market, the mainframe factory and the three suppliers coexist for a long time. According to our estimation, the domestic electric drive scale will reach 23 billion yuan in 2021 and more than 100 billion yuan in 2025. Industry participants mainly include mainframe factories and subsidiaries, independent tripartite suppliers, joint venture / foreign-funded suppliers. Cost has always been an important consideration in the choice of self-research and procurement of mainframe factories. The scale effect and cost advantages of three-party suppliers supplying multiple mainframe factories are more obvious. We believe that three-party suppliers and mainframe factories will co-exist for a long time. Independent suppliers are more responsive and have better service capabilities than joint venture suppliers.
Profit forecast
We forecast that the company's annual income in 2022-23-24 will be 2.016 Universe 38.28 RMB 6.083 billion, net profit will be 0.53 Universe 2.38 Universe 468 million, and the corresponding PE will be 132 Universe 29max 15X, giving a "Buy" rating for the first time coverage.
Risk Tips:
Lack of core problems have an impact; raw material prices fluctuate; sales of new energy vehicles are lower than expected; customer expansion is not as expected.
