Wuhan Lincontrol Automotive Electronics Co.Ltd(688667) (688667)
Wuhan Lincontrol Automotive Electronics Co.Ltd(688667) : domestic solution provider of automotive power electronic control system
The company is a scarce provider of automotive power electronic control system solutions in China. Electronic control system products are applied to N1 / M1 gasoline vehicles, pure electric vehicles, hybrid vehicles and other models. Since its establishment, the company has adhered to independent research and development, committed to breaking the hollow situation of core technology in the automotive industry, gradually replacing foreign capital, becoming a domestic solution supplier of engine management system, and occupying a large share in the N1 model market. We believe that the company has strong scarcity in the field of automotive electronic control system. With the company’s in cylinder direct injection EMS entering the passenger car market, increasing the gradual mass production of program hybrid electronic control system, and increasing the layout of pure electric vehicle electronic control system, it is expected to enter the performance harvest period in the next few years. It is estimated that the company’s revenue from 2021 to 2023 will be 897, 1210 and 1614 million yuan, the net profit attributable to the parent company will be 179, 250 and 361 million yuan, the EPS will be 348, 4.85 and 7.00 yuan / share, and the corresponding PE of the current stock price will be 46.6, 33.4 and 23.2 times. The “buy” rating will be given for the first time.
Engine management system: EMS independent manufacturers are scarce, and there is a wide space for domestic substitution
The technical barriers and industrialization characteristics of EMS determine the high entry threshold of the industry. Multinational EMS enterprises are the main players in the M1 passenger car market, Independent EMS manufacturers have been in the N1 market (such as light truck, micro truck, etc.) to achieve a certain range of domestic substitution. In recent years, the company’s EMS market share of N1 and cross passenger vehicles has steadily increased. The in cylinder direct injection EMS supporting model independently developed by the company has entered the three high calibration stage, which is the first in cylinder direct injection model equipped with independent electronic control system in China, helping the company enter the passenger vehicle market, and there is a wide space for domestic substitution.
Electric control system of hybrid vehicle: the increased program electric control has achieved mass production and has full development potential
The company has developed a variety of hybrid power management systems, including increased program hybrid, 48V micro hybrid system, P2 structure hybrid, power split hybrid, etc., and has realized the mass production of increased program electric vehicle electronic control system. Customers are expected to further expand. With the rapid development of hybrid vehicle market, this business has broad market prospects.
Electric control system of pure electric vehicle: adhere to the cost leading strategy and cooperate with resources to help open the market
The market competition pattern of pure electric vehicle electronic control system is relatively scattered. The company realized the industrialization of MCU and VCU earlier and adhered to the cost leading strategy. The promotion will be strengthened in 2021, and a variety of supporting models are expected to contribute to the revenue in 2022. The company is expected to quickly open the pure electric vehicle market with the help of the customer resource advantages in the field of EMS and hybrid.
Risk tips: core shortage mitigation is less than expected, automobile sales decline, and customer development progress is less than expected
