1. The company is a comprehensive parts manufacturing enterprise. The products mainly include automobile interior and exterior decoration system parts, wheel hub bearings, precision injection molding parts, seat system parts, new energy automobile motor and its controller and so on. The net profit for the whole year of 2016 was 327 million yuan, of which the wholly-owned subsidiary New Torch contributed 203 million yuan, the wholly-owned subsidiary Shuanglin Mould contributed 45.21 million yuan, and the 51% subsidiary Shandong Deyang Electronics contributed 21.34 million yuan.
2. The company expands rapidly through extension. The company has successively acquired New Torch, a hub bearing company, and Shandong Deyang Electronics, a new energy automobile motor and controller company; launched the acquisition of body parts company Shanghai Chengye in 2016, and completed delivery in the first half of 2017; according to the announcement, the company will purchase DSI transmission assets by issuing shares to Shuanglin Group and paying cash. Through continuous extension, the company has realized the rapid expansion of the whole revenue and profit scale.
3. In 2017, Shanghai Chengye realized the merger and thickened the company's performance. Chengye shares are mainly engaged in auto body parts, and the main products include stamping parts, welded parts, guide rails and plastic exterior panels. Customers are Shanghai Volkswagen, SAIC, BAIC Foton and other vehicle enterprises. The other party promised that the net profit of Chengye shares from 2016 to 2018 would not be less than 53 million yuan, 53 million yuan and 59.5 million yuan respectively. On May 12, 2017, Chengye shares completed delivery and became a wholly-owned subsidiary of the company.
4. The self-driving project company continues to push forward. The company previously announced an investment of 100 million yuan to invest in self-driving projects. The project integrates all kinds of resources for the development and introduction of self-driving technology, and the intelligent development of forward-looking layout vehicles. The project company has been registered and established, and the follow-up project will gradually fall to the ground and cooperate with the whole vehicle enterprise.
5. Profit forecast: the company's net profit in 2017 and 2018 is expected to be 420 million yuan and 550 million yuan respectively, corresponding to 24 times and 19 times PE respectively.
Risk hint: automobile industry sales fluctuation risk; asset injection has the risk of uncertainty!