Events:
On August 7, the company issued the prospectus for issuing convertible corporate bonds to non-specific objects, and the total amount of funds to be raised by issuing convertible corporate bonds to non-specific objects shall not exceed RMB 425 million (including capital). After deducting the issuance cost, the proposed investment includes the new auto parts production base project in Thailand, the annual production capacity of 19.54 million auto micro-motors, the reconstruction and expansion of cleaning and cooling system parts and R & D center expansion projects, new energy vehicle micro-motors and thermal management system, intelligent sensing cleaning system parts production base construction project and so on.
Comments:
Focus on micro-motor, improve production capacity + optimization technology. The company's investment project is mainly focused on micro-motor business, for example, after the completion of the new auto parts production base in Thailand, it will add 3 million pieces of motor production capacity; after the completion of the annual production of 19.54 million pieces of automotive micro-motors, cleaning and cooling system parts reconstruction and expansion and R & D center expansion projects, it will increase production capacity, including 7 million pieces of auto micro-motors. In the R & D center reconstruction and expansion project, the company will introduce high-end R & D test equipment and upgrade the company's R & D center, focusing on rare earth magnetic material forming technology and magnetic powder preparation technology, as well as the application of new motor design technology. We believe that this move is to further expand the company's own production capacity and lay the foundation for subsequent scale improvement, and the second is to meet the needs of the international market. This time, the company has actively set up factories in overseas countries, including Thailand, and increased investment in overseas markets. It can further meet the needs of the international market and improve customer satisfaction. The third is to take the motor as the technical core to open up the product layout downstream and break the shackles of core processes and materials upstream. Carry out the layout of the whole industry chain with the motor as the core.
Excellent enterprise of micro motor. Since its inception, the company has been focused on providing automotive motor and other products with high stability and reliable quality for vehicle manufacturers and auto parts suppliers, and is committed to becoming the world's leading supplier of automotive motor technology solutions. And the company continues to invest in the research and development of motor technology and new magnetic materials, and has made some technological breakthroughs in harmonic field motor technology and new magnetic material technology recently. Looking forward to the follow-up, we believe that with the continuous improvement of motor production capacity and technology, the company is expected to further stabilize its market position.
Profit forecast: as the leading enterprise in the micro-motor industry, the company has profound technology accumulation and customer reputation in the automotive motor field, and is expected to open up more downstream areas and further improve its market position in the future. We expect the company to achieve a net profit of 2.16 / 2.89 / 3.80 yuan from 2023 to 2025, corresponding to 28 / 21 / 16 times of PE. Give 2024 earnings 25 times PE valuation, the target price is 90.40 yuan, the first coverage, given a "buy" rating.
Risk hint: downstream demand is lower than expected, profit forecast and valuation judgment are not as expected.