\u3000\u3 Shengda Resources Co.Ltd(000603) 596 Bethel Automotive Safety Systems Co.Ltd(603596) )
Event: on January 25, 2022, the company announced that it would repurchase no less than 3 Shenzhen Fountain Corporation(000005) 00000 shares at a price of no more than 108.89 yuan / share. As of March 7, 2022, the company had repurchased 419300 shares, with an average repurchase price of 722500 yuan. The repurchased shares will be used for the later implementation of equity incentive or employee stock ownership plan.
Rapid repurchase demonstrates development confidence, and the new general manager may receive equity incentive
On January 25, 2022, the company announced that Mr. Yan Shifu would replace Dr. yuan Yongbin as the general manager of the company. On the same day, the company announced that it would repurchase no more than 500000 shares for the implementation of equity incentive or employee stock ownership plan. Mr. Yan Shifu, the former vice president of Bosch auto parts (Suzhou) who took office Bethel Automotive Safety Systems Co.Ltd(603596) in China, is a subsidiary of Bosch in automotive electronics, chassis control system, intelligent driving and control business in China. Bosch Suzhou is in a leading position in the market in the fields of body stability system, sensors, ADAS and so on. Mr. Yan Shifu’s business resources are highly coordinated with Bethel Automotive Safety Systems Co.Ltd(603596) and it is expected that part of the shares repurchased will be used to motivate the new general manager, and the senior management of the company will fully encourage and benefit business development.
The brake by wire product won the Xuanling award and is waiting to accelerate the volume
1. The brake by wire products have won Xuanling award, and the company’s products have repeatedly won Industrial Chain Awards. In December 2021, the company’s wcbs products won the Xuanling Award (mass production · electronic and electrical appliances) from China’s authoritative local parts industry evaluation organization. In 2022, the company has won the “excellent supplier” awards from GAC passenger cars, GAC ea’an, Geely Innovation Research Institute, Geely Changxing manufacturing base and other customers. The company’s product technology and supply quality have been repeatedly praised by the industrial chain.
2. The waiting line controls the accelerated volume of moving products: 1) remarkable market development results: the company has added 50 development projects and 45 production projects in 1h21. Among them, 14 EPB fixed-point projects, 5 lightweight projects, 1 wcbs project and 2 ADAS projects were added; 2) Wait for the accelerated production of line controlled mobile products: as of the semi annual report of 2021, the company’s line controlled braking system (wcbs) has been batch produced in three models, and at least four models will be batch produced in the whole year. According to the comprehensive industrial chain information, we expect that the company’s wcbs products are expected to be mass produced in more than 5 models in 2022, and its next-generation product wcbs2 The research and development of 0 is progressing smoothly.
Investment suggestion: we expect the company to achieve operating revenue of 3.68 billion yuan, 4.54 billion yuan and 5.49 billion yuan in 2021, 2022 and 2023, corresponding to net profit attributable to parent company of 550 million yuan, 710 million yuan and 880 million yuan. Calculated at today’s closing price, PE is 43.6 times, 33.6 times and 27.3 times, maintaining the “buy in” rating.
Risk tip: the progress of product development iteration and mass production is less than expected, the mitigation degree of chip shortage is less than expected, and the rise of raw material cost is more than expected.
