The smooth restructuring of the European business will certainly show confidence in the development. 1) European restructuring: the restructuring of European operations and the closure of loss-making German factories solved the long-standing problem of continuing losses in overseas operations. From the perspective of 21H1 performance, the effect of European business restructuring has been shown. 21H1's revenue is 8.5 billion, YOY+23%; 's net profit is 650 million, YOY+100%. In the medium to long term, the European business will reduce losses and the company's profits are expected to grow. 2) fixed increase: the company has issued a pre-plan for private placement, raising no more than 2.219 billion yuan. Through this fixed increase, the company optimizes the ownership structure and shows confidence in development.
Internal and external accessories: the smooth development of Japanese car customers, product upgrading continues to increase the amount of value. As a leading enterprise of ornaments, the company's interior accessories are positioned as a high-end route, and it is expected that the high-speed growth of business will be driven by rising volume and price in the future: 1) quantity: the company will successfully develop customers of Japanese car companies represented by Toyota, and is expected to further increase its supply share in the future. at the same time, bound to Tesla, Inc., NIO Inc. and other new energy vehicle companies, the customer structure is high-quality, fully benefiting from the rise of new energy vehicle sales. 2) Price: after the automobile electric intelligence, the technology of interior decoration and the trend of interior decoration are obvious, and the bicycle value of the company's products is expected to continue to increase. The company's competitive advantage: 1) the company's interior products have high certification threshold + nearby supporting advantages, and the price advantage will be further enhanced after the factory moves to the area with low labor cost; 2) the certification time of parts manufacturers is longer, which generally takes 2-3 years. Customer stickiness is high.
Automotive electronics: the rapid growth of new energy supporting business, fully benefiting from the rise of new energy vehicle sales. 21H1, the company's automotive electronics business gross profit of 200 million, yoy+68%, gross profit margin of 26%. At present, the company has laid out new energy-related products, which will fully benefit from the rise of new energy vehicle sales: 1) Tesla, Inc.: the company is the global supplier of model Y, and it is expected to obtain more product matching qualifications in the future, driving the rapid development of business through Tesla, Inc. 's sales growth + the improvement of bicycle matching value; 2) batteries: subsidiary Ningbo Shilam matching battery enterprises supply battery package module plastic parts. We expect global battery demand 267,431 and 583GWh in 21-23 to help thicken the company's performance.
Metal parts: core customers start a new product cycle, and the high demand for batteries drives business growth. The company's thermoforming products are deeply matched with FAW-Volkswagen, benefiting from the opening of a new product cycle by core customers. At the same time, as a leading thermoforming enterprise, the company has increased investment in production lines, expanded production and supporting new customers, and developed battery package upper and lower shell products, supporting Volkswagen and Audi, benefiting from the increased battery demand brought about by the high sales growth of new energy vehicles.
Investment suggestion: the company is the leading target of domestic automobile internal and external decoration, customer structure optimization and layout of new energy products, fully benefit from the rapid development of new energy field. At the same time, after the automobile electric intelligence, the trend of science and technology of interior decoration and interior decoration is remarkable, and the value of the company's bicycles is expected to continue to increase; the closure of the loss-making German factory in the past 20 years has solved the long-standing problem of sustained losses in overseas business, and the reversal of overseas operations is imminent; the actual controller intends to subscribe for all shares to show confidence in the development of the company. We expect the company's 2021-2023 net profit to be 1.4 billion, 1.6 billion and 1.9 billion respectively, corresponding to 10, 9 and 8 times PE, respectively.
Risk hint: sales of new energy vehicles are lower than expected, exchange rate risk, industry size and other data are lower than expected, and the public information used in the research report may lag behind or not be updated in a timely manner.
