Changsheng Bearing: A leading domestic sliding bearing supplier, Changsheng Bearing was founded in 1995 and is a leading enterprise in the domestic self-lubricating bearing industry. The company's main products are self-lubricating bearings, low-friction auxiliary parts and related precision castings. The products are positioned in the middle and high-end markets, involving tens of thousands of product specifications. The products are widely used in construction machinery, automobiles, energy (traditional and renewable), port machinery, plastic machinery, agricultural machinery and other industries. The company's customers cover the United Kingdom, Germany, France, Italy, Sweden, South Korea, Japan, India, North America and other countries and regions.
The global bearing industry is growing steadily. China's bearing industry is gradually entering a period of development opportunity. As future machines develop in the direction of high speed and high power, the requirements for bearing performance will increase day by day, the application field of sliding bearings will be further expanded, and the industry is expected to continue to maintain a rapid growth trend. According to the Precedence Research report, the market size of the global bearing industry is US$132 billion in 2022, and is predicted to exceed US$279.8 billion by 2032, with a compound growth rate of 8%.
According to the QY Research report, China's bearing production reached about 275 billion sets in 2023, an increase of 6.18% over the previous year.
The product strength is leading in the country, and the customer base is deep and strong
Since its establishment, the company has attached great importance to the research and development of self-lubricating materials and bearings. The products are positioned in the middle and high-end markets. After years of development, the company's customer resources have continued to expand, and most of them are medium to large enterprises, and the customer base is deep and strong. The company has entered the global supply system of well-known OEMs such as Caterpillar and Volvo, and has established long-term and stable cooperative relationships with well-known automobile and construction machinery parts manufacturers such as Mercier and Bosch, as well as leading domestic companies such as Sany Group and Haitian Precision.
Accelerating incubation of humanoid robot projects is expected to cultivate new performance growth points. Screws are the core components of linear actuators. With the continuous development of high-end machine tool equipment, aerospace, robot manufacturing, automated production lines, etc., high-precision screw products have a wider range of application space. The company's products have many application opportunities in the field of humanoid robots. Currently, it is being developed in cooperation with several robot mainframes and related suppliers. The application of the company's products in the field of humanoid robots is in the exploration, research and sample production stage.
Investment advice and profit forecasting
As a leading enterprise in the domestic self-lubricating bearing industry, Changsheng Bearing's automobile and construction machinery slide business is developing steadily, and the humanoid robot business is on the rise. With continuous improvement in product strength and channel side, the company's future sales performance is expected to improve marginally. Changsheng Bearing's 2024-2026 revenue is expected to be 13.51/15.99/1,888 billion yuan respectively, up 22.22%/18.36%/18.04% year on year, net profit to mother of 2.85/3.50/433 million yuan respectively, up 17.62%/22.87%/23.61% year on year. The latest total share capital and closing market value corresponding EPS are 0.95/1.17/1.45 yuan, respectively, corresponding to PE15.19/12.36/10.00x. The first coverage gave a “gain” review grade.
Risk warning
The risk of increased competition in the industry, the risk of raw material price fluctuations, the risk of overseas business development falling short of expectations, the risk of market demand falling short of expectations, and the risk of exchange rate fluctuations.