Events:
The company issued an announcement to jointly establish "Hainan Dongjiang Intelligent Technology Co., Ltd." (provisional name) with Dongjia Intelligence and other partners, and use the company as the carrier to enter Yazhou Bay Science and Technology City, Sanya City. work with the people's Government of Yazhou District of Sanya City to build "Intelligent driving Test Base and Intelligent Travel Project in Yazhou District, Sanya City".
The registered capital of the project company is 50 million yuan, and the capital contribution of the company is not more than 10 million yuan. The actual control of the project company is Mr. Xu Zhongqiu, the actual controller of Dongjia Intelligence; finally, the ownership structure of the project company shall be subject to the results agreed by the company, Dongjia Intelligence and other partners.
Investment Summary:
A substantial step forward in the field of intelligence is expected to open up the flexibility of the company's growth.
It is helpful to enrich the experience in the field of intelligence and promote the landing of intelligent products such as EPS and ECU. This transaction is expected to further promote the company's electric pump products and equity participation company and related party Dongjia Intelligent driving execution layer Control Unit ECU products in intelligent driving, intelligent travel of multi-scene applications, is expected to promote the traditional pump products to enhance the added value, promote EPS, ECU and other related products to accelerate the landing.
It is expected to deeply participate in the construction of intelligent network union demonstration zones in Sanya and Hainan Province and enjoy the policy dividend. Hainan Province has a positive attitude in promoting provincial electrification and intelligent demonstration construction, and it is also clearly proposed in the "General Plan for the Construction of Hainan Free Trade Port" to strengthen advanced manufacturing companies around new energy vehicles, intelligent vehicles and so on. The company has set up a joint venture with the local government, which is expected to take this opportunity to deeply participate in the construction of Sanya and Hainan Intelligent Network Union demonstration zone and fully enjoy the policy dividend.
The company is a shareholder of Dongjia Intelligence, a related party, and Dongjia Intelligence has a deep accumulation in the field of intelligence.
Dongjia Intelligence is a joint venture company established with Zhuzhou Yilida Mechanical and Electrical Co., Ltd in 2019 (45% of Yilida, 40% of Xiangyou pump and 15% of Xu Zhongqiu). Xu Zhongqiu, chairman of the company, is the chairman and actual controller of the joint venture company.
Dongjia Intelligence is mainly engaged in intelligent vehicle equipment manufacturing, automation control system research and development, installation, sales and services. Its core product is intelligent driving execution layer control unit ECU, which has been applied in more than 5 million cars. It is the earliest independent brand enterprise in China to develop and have the core intellectual property rights of the implementation control system, with good technical advantages and industry first-mover advantages. Dongjia Intelligent has the leading control strategy design, typical assist algorithm and other hardware and software design capabilities related to EPS control system, has a research and development team of more than 120 people, and has obtained a number of patents in the research and application of control system (ECU) and sensors.
On the whole, the company's investment is in line with the company's long-term plan to move towards "mechatronics", which is a substantial step for the company to deepen its development and expand its business scope in the automotive industry chain. it also opens up growth space for the company's transformation, upgrading and long-term sustainable development.
Investment advice:
We expect the company's operating income from 2020 to 2022 to be 1.309 billion yuan, 1.632 billion yuan and 2.033 billion yuan respectively, and the net profit attributable to the shareholders of the listed company is 170 million yuan, 224 million yuan and 270 million yuan respectively, and the earnings per share are 1.62,2.14 yuan and 2.58 yuan respectively, and the corresponding PE are 26.48X, 20.11X and 16.69X respectively.
The company's action has made substantial progress in the field of intelligent driving control, providing performance flexibility for the company's long-term development. In addition, the company's basic business oil pump products can grow steadily with strong certainty, the high growth in the field of gearbox oil pump products is expected to be expected, the business is expected to continue to support the company's steady growth, in 2021, we give the company 30 times valuation, the target price of 64.2 yuan, given the "buy" rating.
Risk tips: the epidemic control is not as expected, the landing of new projects is not as expected, the progress of customer expansion is not as expected, and the risk of intensified competition in the industry.