Event
On December 29, the company issued a plan for the use of funds raised by a non-public offering. It is proposed to raise no more than 2.284 billion yuan for high-end auto parts intelligent manufacturing project (phase II), auto parts intelligent manufacturing European production base project, new energy parts production base project construction and other projects. On December 30, the company received the fixed-point announcement of Chongqing Qingshan gearbox, which is expected to have a life cycle of 5 years and an estimated amount of 1.7 billion yuan.
Brief comment
An additional 2.3 billion yuan will be added to ease the bottleneck of production capacity, and the total output value will reach 5.5 billion yuan after completion. The company issued a plan for a fixed increase of 2.284 billion yuan, and the funds raised were mainly used for the construction of three factory projects in Maanshan, Hungary and Nanjing. (1) Intelligent Manufacturing Project of High-end Auto parts (Phase II):
It is planned to invest 836 million yuan to introduce automation and intelligent production equipment and build an intelligent manufacturing production line for high-end auto parts for the Maanshan factory. It is estimated that after reaching production, the annual sales income will be 920 million yuan and the total annual profit will be 140 million yuan. (2) European production base project for intelligent manufacturing of auto parts: the company's new energy revenue in Europe accounted for 36.34% in the first three quarters. It is proposed to use 379 million yuan to expand the production capacity of the Hungarian factory and shorten the product supply radius to accelerate integration into the supply chain system of European countries. After reaching production, it is expected to achieve annual sales income of 400 million yuan, with a total annual profit of 58 million yuan. (3) New energy parts production base project: it is planned to use 389 million yuan to purchase advanced new energy automobile parts production line in Nanjing factory, so as to further expand the company's new energy automobile parts supply capacity. It is estimated that after reaching production, the annual sales revenue will be 520 million yuan and the total annual profit will be 79 million yuan. The construction period of the fund-raising projects is two years, and it is estimated that after completion, the output value of the company will reach 5.5 billion yuan, with an additional profit of 277 million yuan.
Newly obtained Chongqing Qingshan transmission box fixed point of 1.7 billion yuan, with a total of 4.2 billion yuan of new orders for the whole year. In 2021, the aluminum die-casting industry has shown an ultra-high boom, and the company's ability to take orders has been fully verified. The fixed point of 375 million yuan for motor shell and electric control shell of Zaifu new energy vehicle was obtained in February, the fixed point of 400 million yuan for valve plate of BYD hybrid gearbox was obtained in March, the fixed point of 1.2 billion yuan for transmission shell of Great Wall Lemon DHT platform project was obtained in August, and the fixed point of 550 million yuan for Valeo motor shell was obtained in November. The new Chongqing Qingshan fixed point of 1.7 billion yuan, in 2022 to form a batch delivery. Among them, the terminal matching fuel vehicle project is about 1 billion yuan, and the remaining 700 million yuan order for hybrid cars. This appointment is another major breakthrough in the volume of public advantage business. the company's products are provided through the Nanjing factory in the short term, and the remaining working capital may be used to build a new factory in the long run. Quanfeng has received a total of 4.2 billion yuan in new orders this year, and new orders will be released one after another to provide protection for new production capacity.
The production capacity layout of "2cm N" has been promoted in an all-round way, and the integrated die-casting orders are supplied in small batches. The company's new energy business has long-term technology accumulation, especially the "big three electricity" business has a strong competitiveness. In 2021, we will continue to obtain new orders directly from mainframe factories such as BYD, Great Wall and New Energy head car companies. at present, the company has realized the small batch supply of 5000t integrated die casting orders, and will continue to expand its 6000t and 8000t integrated die casting business next year. Benefiting from the high prosperity downstream, the company currently has a factory capacity utilization rate of more than 95% in Nanjing, and has repeatedly planned capacity expansion ahead of schedule. The Maanshan plant will start production at the end of the year seven months ahead of schedule, while the Hungarian plant will start production in June next year, while further new capacity at the Nanjing plant is expected to release the company's performance flexibility.
Investment suggestion
The company is an independent lightweight high-quality supplier, new energy business competitiveness and growth is outstanding, this increase is expected to alleviate the company's capacity bottleneck, release orders and performance flexibility. We raised the company's homing net profit from 2021 to 2023 to 1.63,2.82 and 448 million yuan respectively, and the corresponding share price PE was 58X, 33x and 21X respectively.
Risk analysis
1, the risk of the sales of new energy vehicles falling short of expectations; 2, the risk of the impact of COVID-19 's epidemic situation exceeding expectations; 3, the risk of chip supply shortage aggravating the risk of rising prices of raw materials such as aluminum alloy; 5. The risk of capacity expansion projects in Anhui and Europe falling short of expectations.
