Deeply involved in sliding shafts for more than 20 years, the “slide over roll” trend has helped the company accelerate its growth. The company specializes in R&D, production and sales of self-lubricating bearings and high-performance polymers. The products are widely used in the automotive, construction machinery, energy and other industries. 2023H1's metal-plastic polymer self-lubricating rolled bearings, bimetallic boundary lubrication rolled bearings, and metal-based self-lubricating bearings accounted for 29.7%, 18.6%, and 19.5% of revenue, respectively.
The wind power sliding shaft market is expected to be released when the “roll-over” of wind power is underway. According to the “Application Status and Development Trend of Sliding Bearings in Wind Power Gearboxes”, wind power gearboxes using sliding shafts can increase torque density by 25%, reduce transmission chain length by 5%, gearbox weight by 5%, and cost by 15% compared to using roller shafts. The wind power bearing market space is estimated to reach 2 billion yuan by 2025. The company laid out the wind power field and built a new self-lubricating bearing project with an annual output of 14,000 sets of wind power generation. Some models of products have already been tested.
Sliding shaft and screw products are expected to be used in humanoid robots, and the company is expected to benefit from the domestic substitution trend. Bearings are required for many parts of humanoid robots, such as joints, motors, and speed reducers. It is estimated that the global humanoid robot bearing market space will reach 31.9 billion yuan in 2030. Sliding bearings are expected to be used in many parts due to their miniaturization and lightweight characteristics, and the company has certain technical reserves for humanoid robot bearings. In terms of screws, the company plans to invest in the construction of 30,000 ball screw projects in the 2022 additional distribution plan. In addition, the company's shareholding company Chuzhou Warner has an annual production capacity of 600,000 sets of ball screws. Currently, the company's screws have been designated by commercial vehicle OEMs, and it is expected that in the future they will enter the humanoid robot industry to produce screws to increase the company's potential profits.
Embedded in the supply chain system of leading automobile companies, demand in the construction machinery industry is expected to rebound. In terms of the automobile business, the company has now entered the global supply system of well-known OEMs such as Volvo and Hyundai, and has established long-term and stable cooperative relationships with well-known domestic and foreign automobile and parts manufacturers such as Meritz. The automobile industry has broad space under rapid development; in terms of construction machinery, the issuance of 1 trillion yuan in treasury bonds is expected to boost the recovery of the industry, and demand in the construction machinery industry is expected to rebound in 24-25 under the demand for excavator renewal.
Investment advice: The company's net profit for 23-25 is estimated to be 2.52/3.31/417 million yuan, an increase of 146.6%/31.6%/26.1% year-on-year, and the corresponding EPS is 0.84/1.11/1.40 yuan. We gave the company a valuation corresponding to 19XPE in 2024, corresponding to a target price of 21.05 yuan. For the first time, we covered it for the first time, and gave it an “increase in wealth” rating.
Risk warning: risk of price fluctuations of major raw materials, risk of macroeconomic cycle fluctuations, risk of exchange rate fluctuations.