A leader in new energy power systems, taking advantage of the low-altitude economy, building a new growth curve. The company's core products are electric drive assemblies and power assemblies, and downstream covers fields such as new energy vehicles, special vehicles, and eVTOLs. The company has strong R&D capabilities, and the innovative “integrated core” solution has the advantages of weight reduction, high efficiency and low cost. Benefiting from the development of new energy vehicles, the company's revenue grew from 0.421 billion yuan in 2020 to 1.963 billion yuan in 2023. The company is actively embracing the wave of new industries such as the low-altitude economy and the electrification of construction machinery to create a new growth curve. We expect the company to achieve net profit of 0.071/0.142/0.281 billion yuan in 2024-2026, EPS of 0.28/0.55/ 1.10 yuan respectively, and the current stock price corresponding to PE is 89/44/22 times, respectively. Considering the growth space of the electric construction machinery and eVTOL business, we covered it for the first time and gave it a “buy” rating.

Building high-standard production capacity to expand the high-end vehicle market, binding the world's leading share of construction machinery electrification dividends (1) There is still plenty of room to increase the market share in the field of new energy passenger vehicles. The market shares of electronic control, electric drive, and OBC in 2023 were 4%, 1.5%, and 6.5% respectively. The company has core technologies such as integrated cores, flat wire oil-cooled motors, and silicon carbide high-voltage platforms. It targets the B and C passenger car markets by building high-standard production capacity, and targets the B and C passenger car markets. The early layout is expected to blossom one after another. (2) The penetration rate in fields such as special vehicles and construction machinery is low, and electrification has great potential. The company cooperated deeply with Hangcha Group and established a joint venture to establish its position as a new energy power system for forklifts. The company established a joint venture with global hydraulic leader Bosch, which is expected to accelerate expansion to global construction machinery customers through Bosch channels, and has been recognized by international customers such as Linde Forklifts, Manitou in France, and Doosan in South Korea. The company is expected to enter a period of accelerated expansion in the fields of construction machinery and special vehicles.

Joining forces with Ehang, the core Tier 1 prototype in the eVTOL electric drive market, the core Tier 1 prototype is the component with high usage and high requirements in eVTOL, which accounts for the highest cost (or 40%). Considering only four scenarios such as short-haul passenger transportation, eVTOL is expected to contribute 14.5/3.6 billion yuan to electric drive/power systems in 2030. The company's “integrated core” has outstanding competitiveness in terms of weight reduction, power density, etc., and is particularly suitable for eVTOL.

The company reached a strategic cooperation with Ehang Intelligence and was deeply bound through shareholding. Ehang is the world's first company in the field of manned eVTOL and is currently the only domestic company with complete “three licenses”. Ingol is expected to share the first-mover and card position advantages with Eair, and develop other customers with advantages such as technology and experience to build a core tier 1 in the eVTOL field.

Risk warning: Industry competition increases risks, customer expansion falls short of expectations, and the promotion of low-altitude policies falls short of expectations.