Recently, Hong Kong stock 0558.HK has attracted a lot of attention because its share price has soared nearly tenfold in just two months, completely rising from a small note to a super big bull stock.

So what makes Lijin's share price soar?It turns out that the company is now the exclusive supplier of Tesla, Inc. giant die-casting machines, and its products are even known as "Tesla, Inc. printers".

First, Lijin Technology, exclusive supply of Tesla, Inc. giant die-casting machine

Starting from 2020, some investors should note that Tesla, Inc. has repeatedly publicized his latest Model Y body chassis integrated die-casting process.

Musk has previously said on social platforms that the Tesla Fremont plant has the world's largest die casting machine Giga Press, which has a pressure of 6000 tons and can reduce the number of Model Y casting parts from 70 to 1, that is, integrated casting. The adoption of this process will bring many benefits, including:

1) each chassis can save hundreds of solder joints, which greatly simplifies the production process and production line.

2) reduce the complicated splicing steps and shorten the manufacturing time

3) greatly reduce the number of parts, streamline the supply chain and reduce costs

4) thanks to the integrated molding, the rigidity of the car body structure will also be greatly improved.

Obviously, the integrated casting process will promote the automobile production process to usher in a revolutionary leap, and the giant die casting machine used by Tesla, Inc. is supplied by Lijin technology.

Intuitively, the manufacturing process of the rear chassis of the Model 3 Model Y car body is greatly simplified:

Tesla, Inc. Guan Xuan has installed super-large 6000T die-casting machines in Fremont factories and Shanghai factories:

Second, upgrade from "Tesla, Inc. printer" to "car printer"?

At present, Tesla, Inc. 's large die casting machine is solely supplied by Lijin science and technology, so the market position for it has become"the core component of a revolutionary change in the car.+Tesla, Inc. provides alone, and the future growth space of the company is suddenly opened.。

At the recent exchange meeting, Lijin management disclosed a lot of key information.：

1) Tesla, Inc. 's large die casting machine is supplied by Lijin alone, and Tesla, Inc. participates in joint research and development.；

2) since the second half of 2020, the company has supplied a number of 6000T die casting machines to Tesla, Inc., involving factories in California, Texas, Berlin, Europe and Shanghai, China (about 15).

3) the company will continue to supply Tesla, Inc. next year, is optimistic about the demand of the industry, and is currently stepping up efforts to expand production capacity.；

4) American factories are supplied by Italy's IDRA Group (Lijin subsidiary), Lijin plans to supply German and Shanghai factories, and expects to purchase more domestic equipment in the future.

5) Tesla, Inc. has a great influence. Many mainframe factories intend to follow the integrated casting process, and some of them have contacted the company.；

6) at the request of customers, larger tonnage products such as 8000T will be launched next year.

7) the single equipment of 6000T die-casting machine is about 6 million euros, plus die-casting peripherals, a set of about 8 million euros。

Overall, the market sees that Tesla, Inc. 's concept of integration is a subversion of the entire automobile manufacturing industry, and the biggest beneficiary is likely to be Lijin Technology.。

Take the second half of 2020 as an example, Lijin delivered 15 sets of equipment to Tesla, Inc. corresponding to 120 million euros, that is, generating 1 billion yuan in revenue. At the same time, the gross profit margin of large die-casting machines is 10-15 points higher than that of ordinary die-casting machines, and the net profit rate is between 15% and 20%, so 15 orders will bring a net profit of about 150 million yuan.

According to the company's third quarterly report, its net profit for the whole year of 2020 is expected to be 2-250 million, with profits soaring. At the same time, in the next 3-5 years, with the continuous site selection and construction of Tesla, Inc. factory around the world, Lijin, as a world-famous die casting machine manufacturer, is an independent supplier and is expected to receive a large number of orders.

In addition, in addition to binding the invincible chariot Tesla, Inc., the market obviously has higher expectations for strength.。

Join Tesla, Inc. to continue to promote lightweight car body, integrated molding, and bring pressure to other car manufacturers, then the future competitors are bound to follow.

According to the investigation, at present, there are front, middle, rear and two sides of the Model Y body, with a total of 5 casting machines, with an annual output of about 150000 units.

Well, according to Tesla, Inc. 's long-term plan to produce 20 million units, the total global automobile production capacity is 100 million. And assuming that Tesla, Inc. adopts an integrated casting process and other car companies around the world use a proportion of 20%, the industry production of all-aluminum die-casting bodies in the next 3-5 years will be 20 million, that is, the market needs 660 6000T die casting machines and thousands of small and medium-sized parts casting machines.

Therefore, standing at the moment, Li Jing ushered in a high level of 400-500.An industry space of 100 million yuan, or an opportunity with an average annual net profit of more than 1 billion yuan.

It is based on this logic that the market capitalization of Lijin Technology soared from HK $1 billion to HK $10 billion in a short period of time. However, in the medium-and long-term market space and corporate performance measurement, the current strength valuation already includes a very high emotional premium. Obviously, under the huge tuyere of Tesla, Inc., short-term investors substantially advance the company's growth expectations and certainty.

Of course, as to whether the logic of power growth is solid, the market needs to further observe whether there is follower capacity in the future.