\u3000\u3000 Midea Group Co.Ltd(000333) (000333)
Event: on February 16, 2022, the signing and foundation laying ceremony for the new strategic base of new energy auto parts of Anqing Weiling Auto Parts Co., Ltd., a subsidiary of Midea industrial technology, was held in Anqing City, Anhui Province. The total investment of the new base project is about 11 billion yuan, of which the investment in fixed assets is about 6.5 billion yuan. After the completion of the project, it can form an annual production capacity of 60 million sets and realize an annual output value of 40 billion yuan.
Comments:
The compressor and motor products are strongly cut into the new energy vehicle parts track. Under the general trend of global energy structure transformation and upgrading, at the end of December, the company renamed the “Midea electromechanical” business group “Midea industrial technology”, and announced that it would challenge the grand goal of sprinting 100 billion revenue within five years, reflecting the group’s firm determination to accelerate the business layout of to B and the transformation of science and technology industrialization. The new base project takes the advantage products such as power steering motor, electric compressor of new energy vehicle and drive motor of new energy vehicle as the first. A total of five products of the existing three product lines have successfully entered the vehicle test and mass production of many world-famous vehicle enterprises. While bringing high-quality products and technical support to customers, It also creates a solid foundation for the company’s business to expand to new energy vehicle valves, new energy vehicle thermal management system and other fields in the future.
Optimistic about the rapid expansion of thermal management track, leading layout enterprises will continue to benefit. At present, Midea’s mass production in the field of new energy vehicle thermal management is mainly advantageous products such as compressors and motors, which has no impact on the leading Sanhua and Dunan of thermal management valves in the short term. The Shanxi Guoxin Energy Corporation Limited(600617) vehicle penetration rate is still low. In the future, the heat pump will bring about a significant expansion of the demand of the heat management industry. We are optimistic that the enterprises with leading layout will continue to benefit.
Home appliance leaders have the advantage of resource endowment, and the industrial manufacturing value is facing the opportunity of revaluation. Midea has significant comparative advantages and resource endowment advantages in R & D, capital, channels, manufacturing, brand and management. The company has formed a strong R & D system with the Central Research Institute as the leading technology R & D leader and the R & D teams subordinate to each business unit to implement the application. It will invest US $1 billion in tackling key technical problems related to new energy vehicle components in the next 10 years. From a global perspective, the industrialization of household appliances is an inevitable path in the development stage. We are strongly optimistic about the opportunity of industrial manufacturing value revaluation of household appliance enterprises.
Profit forecast and investment rating: we expect the company’s revenue in the 21st-23rd year to be 328.738/363.706/407.942 billion yuan, a year-on-year increase of + 15.1/10.6/12.2%; The net profit attributable to the parent company was 29.124/32.521/37.266 billion yuan, a year-on-year increase of + 7.0/11.7/14.6%, corresponding to 17.58/15.74/13.74 times of PE, maintaining the “buy” rating.
Risk factors: changes in the macroeconomic environment, rising raw material costs, product launch less than expected, customer development less than expected, downstream new energy vehicle market development less than expected, etc
