\u3000\u3000 Ling Yun Industrial Corporation Limited(600480) (600480)
China’s leading auto parts enterprise: the company is a listed company affiliated to China Ordnance Industry Group Co., Ltd. its predecessor Lingyun Auto Parts Co., Ltd. was established in 1995 and listed in 2003. After more than 20 years of development, the company has formed a trend of common development of the dual main industries of auto parts and plastic pipeline system. Auto parts business is the main source of revenue of the company, accounting for more than 80% of the revenue. The main products include high-strength and lightweight vehicle safety anti-collision system and body structural parts system, supporting products of new energy vehicle battery system, low permeability and low emission vehicle nylon pipeline system and rubber pipeline system. While deeply cultivating the subdivided fields and gaining a high market position, the company continues to expand product categories and customer resources by means of joint venture, M & A and integration.
Thermoforming layout benefits from the lightweight process: both fuel vehicles and new energy vehicles are facing strong pressure on energy conservation and emission reduction. Therefore, vehicle lightweight is an inevitable trend in the future. Hot formed high strength steel and aluminum alloy have become the mainstream lightweight materials because of their excellent properties. The company started the research and development of thermoforming project earlier, and then absorbed its excellent technical capacity through cooperation with Guines, South Korea, and developed rapidly. Lingyun geens, a joint venture company, has the development and production capacity of conventional thermoforming products and complex products such as door rings, soft areas and unequal thickness materials, and has realized the supporting supply of more than 20 well-known main engine plants at home and abroad, such as Tesla, Byd Company Limited(002594) , SAIC GM and GAC Toyota. The company plans to acquire the remaining equity of Lingyun geens and expand the production capacity of thermoforming lightweight automobile structural parts to continue to consolidate its leading edge.
Rapid growth in the demand for battery cases of new energy vehicles: the vigorous development of new energy vehicles under the global resonance has driven the rapid growth in the demand for power batteries. As an important component, battery case has a broad market space. The company cut into the field of battery case through the acquisition of WAG from Germany. At present, the technical process and production technology of aluminum battery case are in a leading position in China, with the ability of independent design and development, synchronous development and test verification. The company has set up battery case production bases in Shenyang, Zhuozhou, Wuhan, Ningde and Germany to provide supporting supplies for customers such as Porsche, BMW, PSA, Contemporary Amperex Technology Co.Limited(300750) , Great Wall Motor Company Limited(601633) . At the same time, the company plans to continue to expand the production capacity of battery case related products in Yancheng, Wuhan and Zhuozhou, so as to better realize the nearby supply, and further deepen the cooperative relationship with downstream customers.
Profit forecast and Valuation: it is estimated that the company’s revenue from 2021 to 2023 will be RMB 15.574/17.076/18.378 billion respectively, with a year-on-year increase of + 15.02% / + 9.64% / + 7.63% respectively; The net profit attributable to the parent company was 272 / 353 / 449 million yuan, with a year-on-year increase of + 169.01% / + 29.79% / + 27.39% respectively; The corresponding EPS from 2021 to 2023 is 0.36/0.46/0.59 yuan respectively, and the corresponding latest PE is 26 / 20 / 15 times respectively, giving a “recommended” rating.
Risk tip: the car sales volume is lower than expected; The price fluctuation of raw materials exceeds the expectation; The electrification and lightweight of vehicles are not as expected; Customer expansion is less than expected; Technological innovation exceeded expectations.
