It is proposed to acquire a 12% stake in Junsheng Qunying to further focus on the new energy vehicle sector.
The main products of Xiangshan Co., Ltd. include automotive intelligent cockpit components, new energy charging and distribution systems and weighing instruments. 2023Q1 achieved revenue of 1.22 billion yuan, year-on-year + 11.06%, month-on-month ratio-14.60%, homing net profit of 35 million yuan, year-on-year + 35.72% ownership 2023Q1 company gross profit 24.66%, year-on-year + 1.91pcts, net profit 5.31%, year-on-year + 1.46pcts, month-on-month + 2.29pcts. The improvement of 2023Q1 profitability is due to the rapid development of auto parts and charging pile business.
In May 2023, Xiangshan plans to acquire a 12% stake in Qunsheng Qunying for 510 million yuan in cash. Junsheng Qunying is mainly engaged in intelligent cockpit components and new energy charging and distribution system business. After the completion of this transaction, the company will hold a 63% stake in Qunsheng Qunying. In the future, it is expected to further focus on new energy sector business.
"Policy + market" two-wheel drive, charging pile business can be expected in the near future, national and local charging facilities construction policies are frequent, new energy vehicles to the countryside policy continues to promote, the downstream market demand is strong. Since the first acquisition of Junsheng Qunying, the company has entered the charging pile industry. In 2022, the company successfully raised 600 million yuan to promote the development project of new energy vehicle charging equipment and operation platform and the construction project of destination charging station. At the end of 2022, the total amount of orders for the whole life cycle of the company's new energy business is nearly 15 billion yuan. It is expected that with the subsequent order volume and scale effects appear, the charging pile is expected to become a new growth pole of the company's performance.
The layout of domestic business continues to improve, overseas first-mover advantages accelerate to go to sea at home: the layout of equipment operation business continues to improve. (1) equipment: at present, the company's charging pile business is mainly AC pile, and it has recently completed the product research and development of high-pressure DC pile, up to 1000V, and has signed an investment cooperation agreement with Ningbo City Investment around DC pile business, and the product matrix of charging pile has been gradually improved. (2) Operation: Junyuechong, an independent brand of charging operation under the company, was introduced to the market in 2022. At present, it has nearly 500 charging stations and more than 5000 charging piles in the country. It is expected to build regional charging stations in East and South China this year. To create a benchmark for charging Anwei service providers.
Overseas: the company acquired Germany Qunying, Mexico and other production bases in 2015 and has been in operation for nearly 8 years. The layout of overseas business has the advantage of first-mover, accelerating the promotion of charging piles to sea. The company currently has 3 major R & D centers and 12 production bases in China, Germany and North America, and has obtained TUV European standard charging pile CE certification, the products have successfully entered the European markets such as Germany, Hungary, Austria and other European markets, and the American standard certification work has also been continuously promoted. With the production capacity expansion of overseas bases and the certification of European and American products, the company's overseas charging pile business is expected to accelerate development.
Profit forecast
The forecast company's income from 2023 to 2025 is 55.21,66.90 and 8.08 billion yuan respectively, and the EPS is 1.32,1.70,2.24 yuan respectively. The current stock price corresponding to the PE score is 25.2,19.5,14.8 times, covering for the first time and giving a "buy" investment rating.
Risk hint
The price of raw materials rises; the sales of new energy vehicles fall short of expectations; the competition in the industry intensifies; the systemic risk of the market and so on.