The readings of this report are as follows:
The company is currently in the process of transforming from a traditional auto parts company to a new energy auto parts supplier, and the new business binds Ningde era, Huawei, United Electronics and other important customers, the future transformation of the company is expected.
Main points of investment:
Cover and increase the rating for the first time. At present, the company has realized the rapid transformation stage of enterprise development, and it is expected that the positive electrode business of lithium iron phosphate will achieve rapid expansion in 2022-2023, and the intelligent electronic control business will also improve rapidly with Huawei and United Electronics. We estimate that the EPS from 2021 to 2023 is 0.56,1.22,1.61 yuan, using the segment valuation method, the corresponding reasonable valuation is 61.53 yuan. Cover and increase the rating for the first time.
Lithium iron phosphate racetrack ushered in great development. Due to the outstanding cost advantage and high safety of lithium iron phosphate battery, the permeability of domestic power battery market has gradually increased to 50% in a single month. With the cost reduction of high-end models in the future, we believe that the share of iron-lithium battery in the domestic power battery market is expected to reach 70-80%. And in the future, with LG chemistry and other overseas power battery factories involved in the field of lithium iron phosphate batteries, lithium iron phosphate industry will usher in the second growth curve.
The high growth of the company's lithium iron phosphate business in the future is worth looking forward to. The company has a production capacity of 12000 tons of lithium iron phosphate cathode, and it is expected that the first phase of Suining plant will be put into production in October 2021, with most of the production capacity supplied to Ningde era. The company's lithium iron phosphate products have the advantage of high compaction density, and will have a large market space in the application field of middle and high-end passenger cars in the future, the company's production capacity will increase rapidly, and the revenue scale will also grow rapidly.
Intelligent electronic control business is deeply bound to Huawei. The company's intelligent electronic control business mainly includes reducer, CDC solenoid valve, thermal management water pump and other products. At present, reducer products are deeply bound to United Electronics, Huawei and other customers to supply downstream vehicle factories through Huawei's three-in-one system. In the future, with Huawei's expansion in the automotive field, the company's intelligent electronic control business will significantly benefit.
Risk tips. Subsidy policy slope risk, competition aggravating risk.
