Key points of investment
The company has been an expert in weighing equipment business for more than 40 years and has added automobile business since 2020
The company was founded in 1975. Its main products are various weighing products for household and commercial use, including kitchen scales, body scales, commercial scales, etc. At the end of 2020, Xiangshan Group acquired and held Ningbo Joyson Qunying Automotive Systems Co., Ltd. Currently, the company holds 63% of Joysun Qunying's shares, and the automobile business has become the company's largest source of revenue.
The automotive business focuses on automotive smart cockpits and new energy vehicle charging and distribution, with a global layout
The company's automotive business is carried out by Joysun Qunying, which focuses on automotive smart cockpit interior parts and the charging and distribution business of new energy vehicles. The company's smart cockpit business mainly includes two major areas: air management systems and luxury smart accessories. The main products of the new energy charging and distribution business include intelligent charging stations and in-vehicle charging and distribution products in the field of new energy vehicles. The company has three R&D centers in China, Germany and North America, and 12 production bases around the world, and has accumulated rich experience in international operations.
The overall performance is good, and the market prospects for air management systems and new energy charging stations are broad
In the first three quarters of 2023, the company achieved revenue of 4.149 billion yuan, +22.28% year-on-year, and net profit of 141 million yuan, +62.11% year-on-year. The company supplies air management systems and air conditioning outlet products for brands such as Mercedes-Benz and NIO. As cockpit intelligence accelerates, hidden electric air vents will be an obvious trend. The current penetration rate is only 5.15%. It is estimated that by 2030, the global hidden electric air outlet market will reach 14.338 billion yuan, and the CAGR will reach 35.25%. The company's charging pile products have two models: supporting OEMs and brand piles, and the products are mainly home charging piles. At present, European certification has also been completed. It is estimated that by 2030, the global home charging pile market will be close to 60 billion yuan, and the market space is vast.
Profit forecasting and valuation
We expect the company's revenue for 2023-2025 to be 57.18, 75.39, and 8.718 billion yuan, and net profit of 1.99, 2.67, and 349 million yuan, corresponding to current PE 23.36, 17.39, and 13.31 times. We selected Daimei Co., Ltd., Xinquan Co., Ltd. and Shenghong Co., Ltd. as comparable companies in the field of new energy. In 2023-2025, the average PE of comparable companies was 25.41, 19.15, and 14.85 times. Considering that the new energy business is promising in the future, the company was given 25 times PE in 2024, corresponding to the target market value of 6.675 billion yuan, and the target stock price of 50.54 yuan. First coverage, and the company was given a “buy” rating.
Risk warning
The risk that OEMs' customer sales will decline, the new energy business will not develop as expected, and the risk that the weighing equipment business will shrink beyond expectations.