\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 933 Ikd Co.Ltd(600933) )
Event: Recently, the company announced that it recently established a wholly-owned subsidiary Ikd Co.Ltd(600933) (Anhui) New Energy Technology Co., Ltd. in Hanshan County Economic Development Zone, Ma’anshan City, Anhui Province, with a registered capital of 100 million yuan. The wholly-owned subsidiary is the implementation subject of the company’s intelligent manufacturing project of three electricity system parts and auto structural parts of new energy vehicles located in Anhui Hanshan economic development zone.
Establish a project company for Hanshan new energy project to improve operation efficiency. On February 10, 2022, the company and the Management Committee of Anhui Hanshan Economic Development Zone signed the investment agreement on the phased construction of the intelligent manufacturing project of three electric system parts and automobile structural parts of new energy vehicles. The main products of the project are new energy vehicle battery system unit, motor system unit, aluminum alloy parts of electronic control system unit and automobile structural parts. Hanshan project chooses to layout the production capacity in Anhui, which has multiple vehicle factories, which can improve the response speed of the company, enhance customer stickiness, effectively reduce the production and transportation costs of products, and is expected to provide assistance for the company to win new energy orders from local vehicle enterprises in Anhui Ikd Co.Ltd(600933) the establishment of a wholly-owned subsidiary as the implementation subject of the project is conducive to the company’s local business in Ma’anshan and improve production efficiency and business expansion efficiency.
Accelerate the expansion of new energy capacity layout to meet the needs of business development. The company has been deeply engaged in aluminum die castings for many years and has the strength to expand the business of medium and large new energy vehicles and intelligent products (see our in-depth report Ikd Co.Ltd(600933) ( Ikd Co.Ltd(600933) ) in-depth report Series II: strength of transforming new energy 20211215), and the orders of new energy are increasing. At present, the company’s new energy capacity is mainly located in Ningbo No. 3 plant and some No. 5 plants. The new energy capacity under construction is Ningbo Intelligent Manufacturing Technology Industrial Park. The Anhui Hanshan project is expected to start within this year. We believe that the completion of Ningbo Industrial Park project and Anhui Hanshan project will enrich the company’s product structure, improve the company’s production capacity, help the company grasp the rapidly growing demand for new energy parts and enhance its market competitiveness.
Profit forecast and investment rating of the company: at present, the company’s product expansion in the direction of new energy is smooth. After the completion of Ningbo Industrial Park project and Anhui Hanshan project, the company’s new energy capacity reserve will be expanded. The establishment of a wholly-owned subsidiary can improve the efficiency of the company’s expansion of new energy business. We are optimistic about the expansion and volume of the company’s new energy products in the future. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be 416 million yuan, 687 million yuan and 815 million yuan respectively, and the corresponding EPS will be 0.48, 0.80 and 0.95 yuan respectively. The closing price on March 1, 2022 corresponds to the PE value from 2021 to 2023, which is 35, 21 and 18 times respectively. Maintain a “strongly recommended” rating.
Risk warning: the sales volume of passenger cars is lower than expected; Rising prices of raw materials; Exchange rate fluctuations; Rising freight rates; The company’s new product expansion is less than expected
