Huada Automotive Technology Corp.Ltd(603358) performance meets expectations and Hengyi develops rapidly

\u3000\u3000 Huada Automotive Technology Corp.Ltd(603358) (603358)

Event:

The company announced the performance forecast for 2021. It is estimated that the net profit attributable to the parent company will reach 340-390 million yuan in 2021, with a year-on-year increase of 50% ~ 72%.

The main business remained stable and Hengyi developed rapidly.

The main customers of the company’s stamping parts business are joint venture brands such as Toyota, Honda and Volkswagen. During the reporting period, the customers related to the company’s stamping parts business were seriously affected by the lack of core, and the overall sales volume was impacted to a certain extent. However, the company’s Tesla, GAC passenger cars and other customers maintained rapid growth, and the company’s stamping parts mainly remained stable. Jiangsu Hengyi benefits from the rapid development of new energy vehicles. Its customers Contemporary Amperex Technology Co.Limited(300750) , Xiaopeng automobile and other customers maintain a rapid increase in sales. It is expected that the revenue scale of Jiangsu Hengyi will maintain a rapid increase.

The battery box business is developing rapidly and the layout is integrated in the field of die casting.

The company’s Jiangsu Hengyi downstream customers cover Contemporary Amperex Technology Co.Limited(300750) , Yutong Bus Co.Ltd(600066) , Xiaopeng automobile and other customers, and continue to develop GAC new energy, SAIC, Byd Company Limited(002594) Toyota, great wall and so on, with a production capacity of one million sets. At the same time, after introducing Contemporary Amperex Technology Co.Limited(300750) affiliated investment companies as strategic investors, the company will further strengthen cooperation with industry leaders Contemporary Amperex Technology Co.Limited(300750) and is expected to fully enjoy the dividends of the development of new energy vehicles. The company has made in-depth cooperation with Hangda new materials and expanded to the field of integrated die casting by taking advantage of Beihang’s technical advantages in the field of lightweight. Hangda new material has low-pressure die-casting, differential pressure die-casting, high-pressure die-casting and other die-casting processes. The company will apply the existing process of Hangda new material to promote the implementation of integrated die-casting.

Investment advice

We estimate that the company’s EPS from 2021 to 2023 will be 0.78 yuan, 1.01 yuan and 1.38 yuan respectively. Maintain the “buy” rating.

Risk tips

Macroeconomic downturn; The risk of mass production is less than expected.

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