GAC, NIO, and Xiaomi are the main suppliers of automotive power supplies, and Xintuo customers at home and abroad are currently selling the company's main automotive power products, which are deeply bound to GAC, NIO, and Xiaomi. In 2022 and 2023, the company's share of the domestic third-party supply market for automotive power supplies was around 15%. 2024H1 was affected by the decline in GAC Aian's sales volume, and its share fell to 9.6%. The company has sufficient project reserves and a leading overseas layout, and is expected to achieve high growth in the future.

We expect the company's 2024-2026 revenue to be 1.863, 2.443, and 3.09 billion yuan, respectively; net profit to mother will be 0.093, 0.12, and 0.165 billion yuan, respectively; EPS will be 0.84, 1.08, and 1.49 yuan/share. The current stock price corresponding PE is 46.1, 35.8, and 26.0 times, respectively, covered for the first time, giving a “buy” rating.

Domestic basic models: mainly supplied by GAC and NIO vehicle power supplies

Currently, the company's core customers are GAC and NIO. Both are deeply tied to the company through group-level battles.

The total revenue share of GAC and NIO in 2021-2023 was 50.3%, 63.6%, and 76.4%, respectively.

Guangzhou Automobile: The company is the main supplier of the GAC Aian series. The supply share of 2022 and 2023H1 in the GAC Group is 102% and 98% respectively.

NIO: In 2021, the company gradually replaced its competitors. In 2022, 2023H1's supply share in NIO Auto was 116% and 107% respectively.

Domestic growth: Xiaomi's exclusive supply; Xiaopeng, BYD, Changan, Zero Run, and Nio Ledao will be mass-produced (exclusive) of the 2024Q1 Xiaomi SU7. Projects such as Xiaopeng (P7i, P5i), BYD, Changan, Zero Run, and Nio Redo (launched in September 2024) will be launched one after another.

Leading overseas layout: The 2024Q3 Renault project achieved mass production, and designated companies such as Stellantis actively explored overseas markets and obtained targets for projects such as Renault Motors, Stellantis, and a mainstream European luxury brand. 2024Q3 achieved small-batch mass production of Renault's ancillary projects. The company set up a wholly-owned subsidiary in France in 2021. 2024H1 has begun preparations to build a production base in Thailand, and overseas business development can be expected.

Risk warning: Competition in the industry intensifies, product prices are falling, and sales of supporting models fall short of expectations.