\u3000\u3 Shengda Resources Co.Ltd(000603) 982 Nanjing Chervon Auto Precision Technology Co.Ltd(603982) )
Event: the 23rd Meeting of the second board of directors of the company on March 7, 2022 agreed to appoint Mr. Zhang Ding as the general manager of the company and Mr. Liu Zhiwen and Mr. Li Jiang as the deputy general managers of the company
The management plan is implemented, and the three newly hired executives are all from Quanfeng system. The company has a general manager and two deputy general managers this time. After the implementation of the scheme, some markets have alleviated their concerns about the change of management. According to the resumes of senior executives announced by the company, Zhang Ding, Liu Zhiwen and Li Jiang have worked within Quanfeng group for about 20 years. Zhang Ding and Li Jiang have rich experience in product planning and marketing, technology and quality control respectively. Liu Zhiwen has served as the company’s board secretary and chief financial officer since 2016. The three executives are familiar with the company and the industry and have their own areas of expertise. After taking office, they are expected to lead the company into a new journey.
The business strategy is stable, and the medium and long-term growth logic of the two core businesses of transmission and new energy remains unchanged. The development path of the company is clear, with the transmission business as the bottom line and the new energy vehicle parts business as the growth line. (1) Transmission business: DCT valve sector is an advantageous product of the company. In addition to supporting independent vehicle enterprises mainly through BorgWarner, the company also received direct supply orders from customers such as Byd Company Limited(002594) , great wall and so on. Benefiting from the increased penetration of independent DCT, the company’s transmission business will maintain high growth. (2) New energy business: the company has been deeply engaged in the field of new energy for many years and has strong technical R & D strength. At present, the company’s products have covered the three electricity system, with full orders on hand. With the release of production capacity, the new energy business will increase rapidly.
Accelerate the integrated die casting of layout and open up new space for development. The integrated die casting scheme is a new track for the innovation of aluminum die casting industry. The company has technical reserves in large new energy aluminum castings and purchased large tonnage die casting machines for layout earlier. At present, large die casting machines are mainly used for “multi in one” components, battery components and body components. According to the announcement information, the company’s 5000t die-casting machine has been put into use and mass production, and 6000t and 8000t die-casting machines will also come to the factory one after another.
Profit forecast and investment rating: we are optimistic about the company’s market competitiveness and high growth in core businesses such as new energy and transmission parts. After the new management is in place, it is conducive to the stable operation of the company, and the company will steadily promote business expansion according to its strategic plan. We estimate that the net profit attributable to the parent company from 2021 to 2023 will be 162 million yuan, 247 million yuan and 334 million yuan respectively, and the corresponding EPS will be 0.81, 1.23 and 1.66 yuan respectively. The closing price on March 8, 2022 corresponds to the PE value from 2021 to 2023, which is 32, 21 and 15 times respectively. Maintain a “strongly recommended” rating.
Risk warning: the sales volume of passenger cars is lower than expected; Price rise of upstream raw materials; The recovery of missing core is not as expected; The construction progress of new production capacity is less than expected.
