Key points of investment
A high-quality automotive micromotor solution provider deeply involved in its main business. The company is mainly engaged in R&D, production and sales of automotive motor technology and fluid technology related products, and is committed to growing into the world's leading supplier of automotive micromotor technology. The company currently has four major business units: in the field of motor technology, the company has two major businesses: motors and electric modules; in the field of fluid technology, the company has two major businesses: driving vision cleaning systems and thermal management systems. Since its establishment, the company has been providing downstream customers with products related to automotive micromotors with high stability and reliable quality. It has deep technical accumulation and rich production experience, has the ability to develop new products simultaneously with customers, and has industry-leading competitiveness in the automotive micromotor segment.
Vehicle electrification+intelligence drive the automotive micromotor industry space to continue to grow. A micromotor generally refers to a motor with a power of 750 watts or less, an outer diameter of the chassis not greater than 160 mm, or a center height of no more than 90 mm. Micromotors are a technology-intensive industry involving key technologies and processes such as precision machining, precision mold design, magnetic materials, and automated production. Automotive micromotors are mainly used in the three parts and accessories of the powertrain, chassis, and body system. As the electrification and intelligence of automobiles continue to advance, manually operated mechanical devices on automobiles continue to be replaced by motor drives. Typical incremental scenarios include: closing systems (four electric doors and two covers, electric door handles, electric charging doors, etc.); cockpit (seat massage, steering wheel adjustment, electric air outlet, large electric screen rotation); chassis (line control, wire control steering, etc.). According to our estimates, the domestic automotive micromotor market will grow to 36.6 billion yuan in 2027.
The company has core competitiveness in five areas: technology research and development, cost control, customer coverage, product expansion, and production capacity layout. Technology research and development: The company has leading technical advantages in independent and simultaneous product development; product testing; mold development and design; independent R&D, design and integration of intelligent fully automatic production lines. Cost control: The company has implemented a platform-based strategy for products, superimposed a vertical integrated layout of the industrial chain, and realized intelligent and fully automated production, effectively improving cost advantages.
Customer coverage: The company is deeply supporting BMW, Geely, North American new energy customers, Ideal and other OEMs, as well as internationally renowned Tier 1 customers such as Stabilus, Qingbo Wiper, and Edscher. Product expansion: As a platform-based technology, micromotor technology has strong scalability. The company takes micromotor technology as the core, continuously enriches application scenarios and product lineages, and explores new volume. Production capacity layout: The company continues to promote the construction of factories in Thailand and the United States, which helps the company improve the efficiency of supporting global customers and expand the company's overseas business market share.
Profit forecast and investment rating: The company's net profit for 2023-2025 is estimated to be 210 million, 264 million, and 330 million yuan respectively; EPS is 2.62 yuan, 3.30 yuan, and 4.12 yuan respectively; and price-earnings ratios are 34.63 times, 27.50 times, and 22.03 times, respectively. As a leader in the automotive micromotor industry, the company has broad scope for industry development and has been given a “buy” rating for the first time.
Risk warning: The passenger car industry's sales volume fell short of expectations; raw material prices fluctuated beyond expectations; and the expansion of new product applications fell short of expectations.