Ningbo Joyson Electronic Corp(600699) (600699)
Ningbo Joyson Electronic Corp(600699) : a leading manufacturer of automotive electronics and automotive safety. Overseas mergers and acquisitions have achieved important strategic transformation. Since 2011, the company has acquired automotive electronics companies preh of Germany, IMA of Germany, Qunying of Germany Global suppliers of automotive safety systems KSS of the United States and Takata assets of Japan (excluding PSAN business), the company has achieved the strategic goal of globalization, transformation and upgrading. Since 2020, the company has integrated its own business and highly focused on the two major fields of vehicle safety and electric intelligent vehicles. At the same time, the company has obtained global high-quality customers of German, Japanese, American and local through overseas mergers and acquisitions, and successfully entered the OEM core supplier system. The company’s revenue has also increased from 2011 The net profit attributable to the parent company increased from 150 million yuan to 620 million yuan, with an average annual compound growth rate of 47% / 17% respectively. In the first three quarters of 2021, the revenue was 34.11 billion yuan, and the net profit attributable to the parent company was 18 million yuan.
Automobile safety: benchmarking industry leader, which is expected to help the company’s long-term growth. The company’s automobile safety business was formed by the merger and acquisition of KSS and takada. After the merger and acquisition, it jumped to the second largest automobile safety supplier in the world, accounting for 30% of the market. Due to the policy promotion and the trend of vehicle intelligence, the market has a persistent demand for vehicle safety system, which promotes the increase of single vehicle value of vehicle safety system; With the continuous growth of global automobile sales and ownership, we believe that the automobile safety market has broad prospects in the future. As the integration process after the merger and acquisition of the company comes to an end, we believe that the inflection point of the business is expected to appear and the profitability is expected to be further improved.
Automotive electronics: pay close attention to the intelligent and new energy tuyere, and the growth space of intelligent cockpit + intelligent vehicle coupling + new energy electronic control is broad. (1) The global market scale of intelligent cockpit exceeds 40 billion US dollars. The company has coordinated development of software and hardware, has global leading products and services, and has built solid technical barriers. It is expected to further gain market share by cooperating with Huawei. (2) Junsheng Zhilian’s smart car service has accelerated its development. It has the world’s first v2x mass production project, strategically invested in tudaton, a laser radar manufacturer, deeply cooperated with the perception level and decision-making level, promoted the industrialization of relevant technologies, and jointly explored the global market. (3) The huge demand for new energy vehicles has led to the synchronous and rapid growth in the electronic field of new energy vehicles, with the scale of core components approaching 100 billion. The company has made a forward-looking layout in the new energy field in advance, continued to obtain high-quality customer orders, maintained a high growth rate of revenue of more than 70% in 2018-2020, and has become a leading supplier of core components of new energy vehicles.
Profit forecast, valuation and rating: we expect Ningbo Joyson Electronic Corp(600699) the revenue from 2021 to 2023 to be 53.769/60.479/68.169 billion yuan respectively; It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be RMB 701 / 11.00/1.419 billion respectively, corresponding to pe46 / 30 / 23x. The inflection point of the company’s main business is expected to appear, the layout of the whole industrial chain is expected to drive the company’s long-term growth, and the “buy” rating is given for the first time.
Risk warning: the M & A of automobile safety business is not as expected; The downstream market demand is lower than expected; Raw material supply risk.
