Veterans in the automotive electronics industry, sustained and steady growth in performance
The company is mainly engaged in automotive intelligent core electronic products, and has formed multiple business segments such as automotive intelligent power controller, intelligent wiper system products, automotive precision injection molding products, sensor products, etc.
The company has a prominent leading position in the intelligent power controller industry, and its comprehensive sales volume has ranked first in the industry for many years. From the perspective of performance, the revenue CAGR from 2019 to 2023 was 23.68%, of which the revenue in 2023 was 1.671 billion yuan,+42.29% year on year. This is because the company increased its market development efforts, rapidly increased its sales of growth businesses, and achieved a share breakthrough. In 2023, the gross profit margin of the company will slightly increase to 30.90%, which is due to the company's large-scale purchase of raw materials to reduce unit costs, promote the construction of lean production system, and improve the self production rate of parts in some businesses. From 2019 to 2023, the net profit attributable to the parent company (CAGR) was 21.79%, of which, the net profit attributable to the parent company in 2023 was 305 million yuan,+124.07% year-on-year.
Import substitution continues to advance, and mature business is basically stable
The mature business of the company is mainly intelligent power controller. Its products include rectifier and regulator, which are mainly used in traditional fuel vehicles. There is a large demand for power controller products. From the perspective of the complete vehicle supporting market, the fuel vehicle market has a long tail effect and will continue to dominate in the future. In 2023 and 2024Q1, the sales of traditional fuel vehicles in China accounted for 68.55% and 68.90% respectively.
In terms of after-sales market, the number of traditional fuel vehicles in China will reach 316 million in 2023,+3.14% year on year. The company's products are of excellent quality, and it is the only power controller in China that can replace similar international products in situ; The industrial chain has a high degree of vertical integration. It has a mature ability to prepare high-power diodes for vehicles, and an injection molding process for precision brackets for vehicles. It has a high rate of self production to build cost advantages. The company's customers include Chang'an Ford, SAIC GM, Mercedes Benz, BMW and other domestic and foreign automobile enterprises.
Spear at technology to promote rapid expansion of growth business scale
1) Intelligent wiper system. The global market scale of front mounted wiper assembly is relatively stable, but with the development of wiper assembly towards intelligent, lightweight and high-performance, we believe that the proportion of intelligent wiper system is expected to increase. The company has mastered a number of key core technologies such as boneless positive pressure distribution design algorithm, and has achieved independent research, development and production in the field of core parts and rubber strips, with an annual supporting quantity of more than 15 million pieces. The company's products have entered well-known automobile enterprises such as BYD, SAIC Volkswagen, Chang'an Automobile, JAC Automobile, Chery Automobile, etc. 2) Nitrogen oxygen sensors are mainly used in diesel vehicles. Diesel vehicles dominate the commercial vehicle market in the European Union, the United States and other markets. The laws and regulations limiting NOx emissions are becoming stricter. We believe that the demand for nitrogen oxygen sensors is expected to continue to grow. The company has mastered core technologies such as high-temperature co firing of ceramic cores, bottom layer control algorithm and chip development. In OE market, the company's high-precision nitrogen oxygen sensor has passed the verification of two domestic main engine plants and one foreign main engine plant, realizing mass production; After sales market, the company has reached the world leading level. 3) Automotive precision injection products. The company focuses on core technical capabilities, complies with the industry trend of rapid development of the new energy vehicle market, expands new products such as charging guns and high-voltage connectors, and expands its business scale.
Investment advice
We expect the company's revenue from 2024 to 2026 to be 2273 million yuan, 3000 million yuan and 3816 million yuan respectively,+36.00%,+32.01% and+27.17% year on year; Net profit attributable to the parent company was RMB 419 million, 549 million and 711 million respectively,+37.27%,+31.12% and+29.51% year on year; Corresponding to the stock price on May 23, 2024, the PE of the company is 13.89, 10.60 and 8.18 respectively. Considering that the mature business of the company is basically stable, the quality of intelligent power controller products is expected to accelerate import substitution and achieve market share increase. The growth business is expected to expand. Intelligent wiper systems are supplied to leading car enterprises such as BYD and Chang'an Automobile. Nitrogen oxygen sensors have been verified by many domestic and foreign OEMs in the OE market. The precision injection molding business expands new products such as charging guns and high-voltage connectors. To sum up, we believe that the company's performance is expected to maintain a high growth rate, with a "buy" rating for the first time.
Risk warning
Product quality risk, new product development risk, raw material price fluctuation risk, international trade environment change risk
