Report summary
Deeply involved in the auto parts industry for more than 20 years, pioneering a new growth curve, the company is a leading domestic auto parts supplier. Its main business includes chassis parts, lightweight aluminum alloy, and air conditioning compressors; among them, chassis parts are the company's starting business, accounting for about 68% of the company's revenue in 2023. After years of development, the company has a leading position in domestic segments such as steering gear racks and shock absorber piston rods, and has accumulated well-known auto parts and automaker customers including Bosch Huayu, ZF, BYD, and Changan. In 2023, the company entered the humanoid robot industry chain, promoted the development of screw products, and established a subsidiary Beite Robotics on April 15, 2024. The humanoid robot business is expected to open up a new growth curve for the company.
Auto parts: The growth rate of chassis and air compressors is steady, and the aluminum alloy lightweight quick-release chassis: The company has a leading edge in the automotive chassis field, with steering gear racks and shock absorber piston rods accounting for more than 50% of the market in the first half of 2023; the company's key investment in EPS finished rack and cost gear capacity expansion projects gradually released production capacity and contributed to performance. Air compressors: In recent years, the company has maintained a leading position in commercial vehicle air compressors, with a market share of more than 26% in the first half of '23; currently, a new integrated thermal management system production line and an automatic assembly line for electric compressors are under construction as planned. Stimulated by the trade-in policy, automobile terminal sales are expected to continue to be released. Chassis and air compressors are the company's traditional dominant businesses, and are expected to rise steadily in the future. Aluminum alloy weight reduction: The aluminum alloy lightweight business laid out by the company in 2022 gradually entered the large-scale deployment stage. In 2023, it achieved revenue of 127 million yuan, an increase of 182.12% year on year, and gross margin increased 10.41 pcts year on year to 10.77% year on year. In terms of production capacity construction, the second production line has now been installed, and the third and fourth production lines are being procured and constructed. Control arm products and integrated valve terminal products for new customers will gradually be mass-produced this year, which is expected to continue to contribute to the increase in performance.
Humanoid robot screw: Outstanding technology and industrial chain advantages will fully benefit from humanoid development trends. The company has been deeply involved in automotive parts for more than 20 years. The accumulated processes such as car processing, grinding, and surface heat treatment are highly similar to the screw, and supply chain resources can be shared. The company's entry into the humanoid robot screw field is relatively smooth, and the technical and industrial chain advantages are outstanding. The company actively cooperates with customers to develop screw products for humanoid robots. The main products include planetary roller screws and trapezoidal screws. Currently, small-batch production line equipment has been installed and tested, and it is expected that the future will fully benefit from the development trend of humanoid robots.
Investment advice
The company is expected to achieve revenue of 2,178 billion yuan, 2,558 billion yuan, and 3,033 billion yuan, and net profit of 75 million yuan, 110 million yuan, and 159 million yuan in 2024-26. The price-earnings ratios corresponding to the current stock price are 87.5X, 59.2X, and 41.1X, covered for the first time, giving it a “buy” rating.
Risk warning
Automobile sales fell short of expectations, market competition intensified, production capacity release fell short of expectations, and humanoid robots fell short of expectations