Hunan Oil Pump Co.Ltd(603319) (603319)
Considerable achievements have been made in performance growth, and the trend of product structure optimization is obvious
In recent three years, the company's performance has maintained continuous growth. In 2020, the revenue was 1.409 billion, with a year-on-year increase of 40.67%. In the first three quarters of 2021, the revenue was 1.269 billion, with a year-on-year increase of 32.24%. The company's performance was considerable. From 2016 to 2020, while the company's revenue increased steadily, the proportion of diesel engine oil pump and gasoline engine oil pump gradually decreased from 82.76% in 2016 to 60.40% in 2020. The proportion of revenue from other businesses such as motors and oil pumps has gradually increased, which is the result of the company's active layout to other businesses such as new energy. From 2018 to the first three quarters of 2021, the company's net sales interest rate was 10.73%, 9.29%, 11.97% and 10.11%, which was relatively stable.
China's leading engine lubrication and cooling pump has a stable cooperative relationship with many Chinese and foreign manufacturers
The company is a leading enterprise in the field of engine lubrication and cooling pumps in China. It is also the first enterprise in the industry to realize synchronous design and development with the main engine factory. With more than 40 years of industry experience, the company has leading advantages in technology development, quality management and customer recognition. The company has established solid cooperative relations with a number of major manufacturers at home and abroad. Its international customers include more than ten famous main engine manufacturers such as Cummins and caterpillar; Chinese customers include more than 60 main engine plants such as Yuchai and Weichai. We believe that the company's leading position in this field will continue to be maintained for three main reasons: 1) the auto parts industry has a high customer access threshold because of its long access cycle and strict access standards, 2) the company has mastered the key core technologies of a series of engine pump products, and 3) the company has strong quality management and supply chain management capabilities.
New energy vehicles have entered a period of rapid growth, and emerging businesses will continue to be driven
2021 new energy vehicles have entered a period of rapid penetration, He Xiaopeng, CEO of Xiaopeng automobile, judged that "the whole 2025 is Shanxi Guoxin Energy Corporation Limited(600617) " The automobile penetration rate can reach 30%, and it can reach 60% in the super first tier cities with emission restriction policy. Under the background of the rapid penetration of new energy vehicles, there are three main driving directions for the company's products: 1) the electronic water pump produced by the company widely serves the three electric systems of pure electric vehicles and hybrid electric vehicles, providing them with a continuous and reliable supply of coolant with continuously adjustable flow. 2) The large-scale application trend of lidar in new energy vehicles is expected to drive the sales of the company's motor products. 3) Yilida, an enterprise controlled by the actual controller with the company, is the leader of vehicle EPS in China, and the company is expected to supply EPS motors in batches. In the specific product field, the company has developed a wealth of electronic pump product lines according to different downstream needs. With the rapid penetration of new energy vehicles, the company's electronic pump business will grow rapidly. At present, the company's electronic pump products have well-known customers at home and abroad, such as Toyota Motor (new energy), Cummins of the United States, PECA of the United States, Aisin of Japan, Nissan of Japan, CRRC Zhuzhou (new energy), SAIC transmission, Xi'an shuangte and so on.
Investment suggestion: we are optimistic that the company will benefit from vehicle electrification and intelligence. We expect the net profit attributable to the parent company to be RMB 170 / 250 / 327 million from 2021 to 2023, with a target price of RMB 46.58, maintaining the "buy" rating
Risk tip: China's electric vehicle penetration is lower than expected, capacity expansion is lower than expected, downstream customer penetration is lower than expected, and technology iteration risk
