Ikd Co.Ltd(600933) (600933)
This is our second in-depth report on Ikd Co.Ltd(600933) . It mainly discusses the strength of the company, as the invisible champion of small and medium-sized aluminum alloy die castings in the world, to expand the business of medium and large new energy vehicles and intelligent products from the aspects of management efficiency, die-casting technology, equipment layout and financial strength.
We believe that Ikd Co.Ltd(600933) has the strength to transform large and medium-sized new energy products of aluminum alloy:
Efficient management and operation capability: Ikd Co.Ltd(600933) must take the lead in operation efficiency in order to gain a foothold. The company has a flat and evolvable organizational structure, in-depth layout in the field of automation and intelligent manufacturing, and constantly improve the lean production mode, which makes the company better in operation efficiency. Efficient management and operation capability will enable it to vigorously develop new energy business.
Establishment of new energy business department: an independent new energy automobile parts business department was established in Ikd Co.Ltd(600933) August 2021, which is directly managed by the chairman, responsible for the development, procurement and quality control of new energy projects undertaken by the subsequent company, and supporting the company's needs for new product development from the organizational structure level.
Layout a variety of die-casting processes and broaden the product series: the company has mastered the high vacuum die-casting process, which is more and more widely used in the field of auto parts, from chassis to body parts. At the same time, the company has mastered the high solid and semi-solid molding technology, which can make the product performance more meet the requirements of structural parts. At present, the auto parts using semi-solid die castings in the industry include control arm, steering knuckle, brake caliper, shock absorber, engine support, supercharger pressure impeller, battery support and other products. Ikd Co.Ltd(600933) by mastering this process, it is expected to expand the product series.
Large tonnage die casting machine in place: Ikd Co.Ltd(600933) according to the EIA information of Intelligent Manufacturing Technology Industrial Park, the company plans to purchase 45 die casting machines, including 35 die casting machines above 1000t, including 4 4400t, 2 6100t and 2 8400t. In the product scheme, the specifications of new energy vehicle body parts are 40kg and the specifications of new energy vehicle battery system unit products are 10kg, which is a large increase compared with the specifications of the company's traditional small and medium-sized products. Large tonnage die-casting machine is the equipment foundation for producing large-scale products, Ikd Co.Ltd(600933) purchased large tonnage die-casting machine and steadily promoted the expansion to medium and large new energy products.
Strong financial strength to escort the new energy business: Ikd Co.Ltd(600933) the company has always maintained a state of low debt and high cash due to its conservative financial strategy. At the same time, the company's traditional business has good profitability and strong hematopoietic ability. According to our calculation, the company can stably generate cash income of RMB 600-700 million per year through its main business activities. These will escort the company to turn to new energy business.
The company's expansion to new energy vehicles and intelligent products is smooth, and the expected new revenue within the service life of relevant products accounts for more than 50%. In line with the development trend of electrification and intelligence in the industry, Ikd Co.Ltd(600933) has increased the development of relevant products, including new energy vehicle electric drive, electronic control, on-board charging unit, power distribution unit, inverter unit, intelligent ADAS image system, etc. The new energy vehicle project, thermal management system project and vehicle vision system project obtained by 2021h1 company are expected to account for more than 50% of the new sales revenue within the service life.
Profit forecast and investment rating of the company: the development of the automotive industry towards electric intelligence is the general trend, The development of relevant incremental parts has an impact on the supplier's development ability (capital + Technology) has put forward higher requirements and is reshaping the pattern of aluminum die casting industry. The company's product expansion in the direction of new energy is smooth, and digital production will help the company further expand its competitive advantage as a leader in the industry. Taking into account the impact of rising freight and raw material prices, we adjust our profit forecast and expect the net profit attributable to the parent company to be 4.1 from 2021 to 2023 respectively 6. RMB 687 million and RMB 815 million (the previous values are RMB 488 million, RMB 687 million and RMB 815 million), corresponding EPS is RMB 0.48, RMB 0.80 and RMB 0.95 respectively (the previous values are RMB 0.57, RMB 0.80 and RMB 0.95). The closing price on December 14, 2021 corresponds to the PE value of 2021-2023, which is 35, 21 and 18 times respectively. We are optimistic about the expansion and volume of the company's new energy products in the future, and raise it to the "strongly recommended" rating.
Risk warning: the sales volume of passenger cars is lower than expected; Rising prices of raw materials; Exchange rate fluctuations; Freight rate rise; The company's new product expansion is less than expected.