Ningbo Xusheng Auto Technology Co.Ltd(603305) (603305)
Report summary:
One stop supplier of precision aluminum parts
Founded in August 2003, Ningbo Xusheng Automotive Technology Co., Ltd. is committed to the field of new energy vehicles and vehicle lightweight, mainly engaged in the R & D, production and sales of precision aluminum alloy auto parts and industrial parts. The main application fields of the products include precision machining parts of core systems such as transmission system, transmission system, battery system and suspension system of new energy vehicles.
In the era of automobile new energy + comprehensive lightweight, the market prospect is broad
Global environmental protection issues are becoming increasingly prominent, and climate change issues are becoming increasingly prominent, which requires the low-carbon transformation of the automobile industry and multiple policies to support the future development of new energy vehicles. The lightweight technology of automobile can effectively achieve the goal of energy conservation and emission reduction. China’s automobile lightweight has broad prospects and the market scale continues to improve. Energy saving and new energy vehicle technology roadmap 2.0 points out that China’s automobile lightweight technology requires that the amount of aluminum used for single vehicle will be 190kg in 2020, 250kg in 2025 and 350kg in 2030. In 2025, China’s automobile lightweight market is expected to reach 150 billion yuan.
Close cooperation with Tesla and excellent operation level
Tesla‘s production and sales are booming. In the cooperation with Tesla, the company has accumulated the design, R & D and production technology of new energy vehicle parts. It has the first mover advantage in the field of die-casting parts in the field of new energy vehicles, driving the long-term development of the company. The production and marketing rate of the company has improved since 2020, and the market layout of Chinese customers has increased; Strong R & D strength and increasing R & D investment. From 2018 to 2020, R & D investment accounted for 3.99%, 4.30% and 3.54% respectively; At the same time, the cost management system is strict and the structure is reasonable, and the period cost rate is significantly lower than the average value of Companies in the same industry.
Investment advice
It is estimated that the company’s operating revenue from 2021 to 2023 will be 2.641 billion yuan, 4.478 billion yuan and 6.195 billion yuan respectively, with a year-on-year growth rate of 62%, 70% and 38% respectively. The net profit attributable to the parent company will be 509 million yuan, 828 million yuan and 1.144 billion yuan respectively, with a year-on-year growth rate of 53%, 63% and 38% respectively. The current stock price corresponds to the P / E ratio of 21-23 years, 43, 27 and 19 times respectively. Referring to the auto parts (Shenwan) index corresponding to 26.47 times PE (Lyr, wind profit forecast) in 2022, the P / E ratio of the company in 2022 is slightly higher than the average. Mainly considering that the company is a lightweight expert and keeps expanding its business while keeping an eye on Tesla, its future business profitability is higher than the average profitability of peer companies. For the first time, it is given a “recommended” rating.
Risk tips:
Risk of high customer concentration; Risk of tax policy change in export market; Price fluctuation risk of raw materials; Exchange rate fluctuation risk.
