The company was founded in June 2004. After the acquisition of Wanda in May 2022, its main business expanded from the field of automobile braking systems and automobile intelligent driving systems to the automotive steering system business field. It now has independent positive development capabilities for mechanical braking system products, mechanical steering system products, and intelligent electronic control system products.
Facing the development trend of electrification, intelligence, weight reduction, and import substitution in the automotive industry, the company continues to expand its product line and maintain innovation, gaining leading technical advantages in the fields of automotive mechanical braking products, mechanical steering products, electronic control products, intelligent automotive driving products, and lightweight components. In the field of braking systems, the company is promoting the development of next-generation line control systems (WCBS2.0) with braking redundancy, which can better meet the needs of line control systems at L4 and above. Currently, there are several fixed-point projects and are expected to be mass-produced in the first half of 2024; electromechanical braking systems (EMB) research and development work is underway, and the first round of EMB functional samples have been successfully developed; the next-generation dual-control electronic parking brake system (D-EPB) independently developed for new energy models has been upgraded from the original SmartEPB While improving the parking reliability of new energy vehicles, it has now been maturely applied to various new energy models; in the field of lightweight parts business, the company further expands product categories, such as subframes, cast aluminum calipers, wheel housings, etc.; in terms of steering products, the company continues to promote the research and development of electronically controlled steering products, and gradually advance to wire-controlled steering systems. The development of DP-EPS, R-EPS steering systems and wire-controlled steering systems is progressing smoothly; in the field of intelligent driving, the company is actively promoting existing ones The commercialization of L2 and L2+ level ADAS products, and research and development on integrated mobile and parking domain controllers, high-precision maps, intelligent algorithms, etc. The Advanced Driver Assistance System (ADAS) production line was put into operation in April 2022. As of the 2023 mid-year report, 13 projects have been delivered in batches.
With nearly 20 years of experience in R&D, manufacturing and sales of chassis systems in the automotive industry, the company grasps the trend of electrification, intelligence and lightweight industry, continuously expands product categories, develops high-quality downstream customers, and actively lays out overseas markets and invests in overseas production capacity. With the further development of new energy vehicles and the continuous implementation of intelligent driving, the company is expected to usher in rapid performance development.
Profit forecast and rating: The company's net profit for 2023-2025 is estimated to be 7.653 billion yuan, 9.884 billion yuan, and 12.690 billion yuan, EPS of 2.12 yuan, 2.81 yuan and 3.65 yuan respectively, and PE of 27.92 times, 21.11 times, and 16.22 times, respectively. First coverage, giving a “buy” rating.
Risk warning: New business falls short of expectations, overseas progress falls short of expectations, raw material prices rise