Nanjing Chervon Auto Precision Technology Co.Ltd(603982) (603982)
Nanjing Chervon Auto Precision Technology Co.Ltd(603982) it is proposed to raise no more than RMB 2.284 billion, and overweight capacity expansion will help growth
On December 30, Nanjing Chervon Auto Precision Technology Co.Ltd(603982) announced that it planned to raise no more than RMB 2.284 billion through non-public offering of shares, Invest in intelligent manufacturing of high-end auto parts (phase II), European production base for intelligent manufacturing of auto parts, new energy parts production base project and replenishment of working capital. The company’s strategic planning path is clear, and the orderly expansion of production capacity provides a guarantee for the company’s long-term growth. We maintain our previous forecast, the company’s revenue is expected to be RMB 1805 / 2324 / 3006 million, the net profit attributable to the parent company is RMB 172 / 243 / 351 million and EPS is RMB 80 million from 2021 to 2023 5 / 1.21/1.74 yuan / share, corresponding to 56.5 / 40.0 / 27.7 times the current share price PE, maintaining the “buy” rating.
The equipment utilization rate is close to the bottleneck, the new energy business blossoms in many places, and the fund-raising expansion helps the development
As of 2021h1, the utilization rate of die casting equipment of the company is close to the bottleneck, and the company has obtained a large number of orders for new energy vehicles since 2021. It has entered Byd Company Limited(002594) dm-i, honeycomb transmission, ZF, American electric vehicle and Valeo Siemens supply system, and it is urgent to expand production capacity. This fund-raising project includes:
(1) High end Auto Parts Intelligent Manufacturing Project (phase II): with a total investment of 1.002 billion yuan, it will build a high-end auto parts intelligent manufacturing production line to improve the company’s production efficiency and production capacity.
(2) European production base project for intelligent manufacturing of auto parts: with a total investment of 438 million yuan and a construction site in Hungary, it will effectively expand the company’s production capacity by building a new intelligent manufacturing production base in Europe, shorten the product supply radius and accelerate its integration into the supply chain system of European countries.
(3) New energy parts production base project: with a total investment of 464 million yuan, it will build an efficient and intelligent industrialized production base, expand the company’s supply capacity of new energy auto parts and help long-term development.
(4) Replenish working capital and repay loans of 680 million yuan, reduce asset liability ratio and enhance the company’s financial strength.
Integrated die casting speeds up the layout and breeds new opportunities in the blue ocean market
Under the trend of lightweight, the penetration rate of aluminum alloy die castings in the main parts of automobile is expected to increase. Body structural parts are the blue ocean market of aluminum die casting industry. Traditional body manufacturing takes stamping + welding as the core process, and Tesla improves the traditional die-casting process by means of integrated die-casting. Integrated die casting has high technical barriers. The company has increased R & D and resource investment, leading the pace among Chinese die casting manufacturers, and is expected to usher in greater development opportunities.
Risk tip: the progress of capacity expansion is less than expected, and the penetration rate of new energy vehicles is less than expected
