\u3000\u3000 Jing-Jin Electric Technologies Co.Ltd(688280) (688280)
The company focuses on electric drive business. The company is a leading enterprise of electric drive system of new energy vehicles in China. It is engaged in the research, production and marketing of electric drive system. It has independently mastered the core technology and realized the complete layout of the three assemblies of drive motor, controller and transmission. The company has advanced and comprehensive technical R & D strength in drive motor, power electronics, automobile transmission, software control and system integration. The company’s products are positioned in the medium and high-end electric drive market and maintain a stable cooperative relationship with first-line vehicle enterprises outside China. It is one of the few new energy vehicle core parts enterprises in China that can continuously obtain mass production orders for electric drive system products from world-famous vehicle enterprises. The electric drive industry is still in the early stage of development and the pattern is not yet stable, which brings breakthrough opportunities for Chinese enterprises with core competitiveness. Electric drive is the heart of new energy vehicles, and electric drive is the driving form that will be adopted by various technical routes of new energy vehicles (HEV, PHEV, Bev and FCV). With the increasing penetration of new energy vehicles, the electric drive market has a broad space. The electric drive system is still in the process of iterative upgrading, and there is still much room for technical upgrading of various components. According to our research, there are a large number of electric drive suppliers, and car enterprises have the trend of diversification of electric drive suppliers. All kinds of enterprises are involved in the R & D and production of electric drive system from a certain part of electric drive. The industry presents a situation in which hundreds of schools of thought contend, but the pattern is not yet stable. We believe that only enterprises that have a comprehensive grasp of power electronics design ability, control algorithm optimization ability, motor design ability, precision machining and manufacturing ability and cost control ability can launch an electric drive system product with market competitiveness. The unsettled industry structure and high technical requirements will bring breakthrough opportunities for Chinese enterprises with core competitiveness.
Jing-Jin Electric Technologies Co.Ltd(688280) build a global supplier of electric drive systems. 1) The whole industry chain layout, positive research and development, and in-depth understanding of electric drive system. In 2016, the company launched reducer products and controller products, entering the field of electronic control assembly. The three in one electric drive system was first launched in January 2019. At present, the company has launched deeply integrated electric drive products, which benefits from the high self-study of the company’s three major parts, laying the foundation for the company to launch more powerful products in the later stage. 2) The existing products are technologically advanced. From the parameter performance of the company’s existing products, the efficiency parameters of the company’s electric drive assemblies are leading in the industry. According to the company’s prospectus, the company still has a competitive advantage compared with the current global tire1 and other international competitive products. 3) The layout of the global market, the main customers include first-line car enterprises outside China. The company set up Jingjin North America as the R & D and manufacturing base to expand the North American market. In 2020, the company’s “third generation semiconductor” high-power silicon carbide controller products won the mass production supporting projects of Scania, Sweden and Mann, Germany, which are subordinate to the German Volkswagen commercial vehicle group traton. We believe that the company focuses on the electric drive system market and has competitive advantages in technology and manufacturing in this field. It is expected to break through the competition successfully in the future.
Profit forecast and investment rating of the company: electric drive is the determined track of new energy vehicles (xev), and the field is in the stage of rapid growth and iterative upgrading. With in-depth layout of electric drive business and R & D and technical advantages, the company is expected to become a global supplier of electric drive system. We estimate that the net profit attributable to the parent company from 2021 to 2023 will be -385, – 204 and 17 million yuan respectively, and the corresponding EPS will be -0.65, – 0.34 and 0.03 yuan respectively. The current share price corresponds to PE values of – 20, – 39 and 458 times from 2021 to 2023 respectively. At present, the electric drive industry is in the early stage of development. The company actively expands and has a large investment in research, production and marketing, resulting in operating losses. However, we are optimistic about the company’s long-term development prospects, covering it for the first time and giving it a “recommended” rating.
Risk warning: the sales volume of passenger cars is lower than expected; The impact of the epidemic exceeded expectations; The expansion of the company’s new products was less than expected.
