Zhejiang Asia-Pacific Mechanical & Electronic Co.Ltd(002284) (002284)
1、 Event overview
According to the announcement on December 17, 2021, Zhejiang Asia-Pacific Mechanical & Electronic Co.Ltd(002284) recently received a fixed-point notice of Great Wall Motor Company Limited(601633) (hereinafter referred to as ” Great Wall Motor Company Limited(601633) “), and the company will develop and produce ESC products of M6 model as a parts development and production supplier of Great Wall Motor Company Limited(601633) .
2、 Analysis and judgment
Important breakthroughs have been made in core products, and the company is expected to become a core supplier of automotive electronics for independent brand automobile enterprises
The company has won the fixed point of Great Wall Motor Company Limited(601633) key model platform core automotive electronics products, and is expected to become a core supplier of automotive electronics for Chinese independent brand auto enterprises. The company has obtained the fixed point of ESC electronic products of Great Wall M6 model platform. Previously, it has obtained the fixed point of ABS Project of Fengjun 5 / 7 and P06 model platform, ABS and EPB project of ec01 model, and ABS and EPB project of chb025a model platform. We believe that this fixed point of ESC products has a “milestone” significance in the development process of the company, which means that the company’s automotive electronic products have made a historic breakthrough. As the core automotive electronic products, ESC is mainly supplied by foreign Tier1, and ESC’s large-scale mass production capacity and project supporting experience are expected to become an important “capability endorsement” for the company to further realize the fixed-point of line control mobile products and the whole set of ADAS solution projects. The company’s automotive electronics products continue to be recognized by the head’s independent brand. It is expected that under the trend of “lack of core” and “independent control”, the “demonstration effect” of the head’s independent auto enterprises is expected to make the company grow into a core supplier of automotive electronics in China.
The company’s automotive electronics business has ushered in a historic development opportunity and is expected to become a “Bosch” in China’s braking field
Independent brands are rising in an all-round way, and the company’s automotive electronic products continue to land at fixed points, which is expected to become the “Bosch” in China’s braking field. The company’s ABS / EPB / ESC and other automotive electronic products have been recognized by core independent brands, and the basic braking products are the first-line leaders in China. In addition, the company’s forward-looking layout of ADAS and hub motor business can provide full stack brake product solutions for vehicle manufacturers, so as to further drive the company’s large volume of automotive electronic products. At present, the company has carried out close cooperation with FAW, Dongfeng, great wall, SAIC, Geely, Chang’an and other main engine plants. Subsequent companies are expected to have significant advantages in cost, localization services and system level solution capabilities, usher in historic development opportunities and become “Bosch” in China’s braking field.
3、 Investment advice
It is estimated that the company will achieve a revenue of RMB 3.45/41.9/5.47 billion and a net profit attributable to the parent of RMB 0.70/1.22/199 billion from 2021 to 2023. The current market value corresponds to 101 / 58 / 36 times of PE from 2021 to 2023. The company’s automotive electronic products continue to be in large quantities, and its performance is expected to return to a historical high level. As a leader in China’s braking industry, it is expected to enjoy a valuation premium and maintain the “recommended” rating.
4、 Risk tip: raw material price fluctuation leads to low gross profit margin, new product expansion is less than expected, exchange rate risk, etc.
