\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 741 Huayu Automotive Systems Company Limited(600741) )
Event: the company issued an announcement on the progress of the subsidiary selling the equity of Shanghai Valeo automobile motor wiper system company.
The equity sale transaction has been basically completed, which is expected to optimize the business structure and increase profits. According to the announcement, Shanghai Industrial Transportation Electric Appliance Co., Ltd., a wholly-owned subsidiary of the company, sold its 27% equity of Shanghai Valeo automobile motor wiper system Co., Ltd. to Valeo International Holdings, with a transaction amount of 398 million yuan. The transaction has been basically completed, and the subsidiary Industrial Transportation no longer holds the relevant equity of Valeo wiper. After considering the transaction related taxes and other costs, it is expected that this transaction will increase the company’s profits, further promote the orderly advance and retreat of the business, accelerate the adjustment and optimization of the business structure, and lay a good foundation for future development.
Actively expand the customers of new energy vehicle enterprises other than Saic Motor Corporation Limited(600104) and it is expected that Tesla and the supporting business of new forces will contribute more performance increment to the company. The company took the initiative to grasp the development trend of electrification and intellectualization and actively sought to support customers such as high-end brands and new forces. Products such as automobile transmission shaft, drive shaft and differential lock were supplied by Great Wall Motor Company Limited(601633) , Chongqing Changan Automobile Company Limited(000625) , Geely Automobile, Byd Company Limited(002594) and other new generation models of independent brands. Products such as automobile interior trim, seats, steering gear and drive shaft were supplied to Tesla, Weilai, Xiaopeng and other new energy vehicle enterprises, as well as Mercedes Benz BMW, Audi and other luxury brand models are designated. In the emerging business field, the intelligent cockpit domain controller based on high computing power platform and various mainstream operating systems will be matched for SAIC passenger cars, Zhiji automobile, SAIC Maxus, etc; Huayu Magna provides electric drive system assembly for Volkswagen MEB platform, which is expected to benefit from the improvement of ID. Series sales. The company continues to strengthen product self-research and supporting landing capacity, and intelligent products are expected to become a new growth point.
The company is expected to benefit from the growth of production and sales of Tesla and SAIC Volkswagen. Tesla China’s total wholesale sales from January to February 2022 were 116400 vehicles, with a year-on-year increase of 244.24%. The price rise and tight supply chain have relatively little impact on Tesla’s sales. The company provides Tesla with supporting seat system products with high single vehicle value, which is expected to continue to benefit. From January to February, Saic Motor Corporation Limited(600104) accumulated production of 849700 vehicles, with a year-on-year increase of 20.75%. SAIC Volkswagen accumulated production of 222700 vehicles, with a year-on-year increase of 55.73%. In 2021, SAIC Volkswagen’s sales were greatly dragged down by the lack of core. It is expected that with the marginal alleviation of chip shortage, SAIC Volkswagen and Saic Motor Corporation Limited(600104) sales improved, which is expected to promote the growth of the company’s performance.
Profit forecast and investment suggestions
Slightly adjust the expense rate, etc., and it is estimated that the eps2 will be from 2021 to 202311. 2.45, 2.83 yuan (original 2.11, 2.59, 2.97 yuan), with reference to the valuation of comparable companies, 13 times the PE valuation in 2022 is given, the target price is 31.85 yuan, and the buy rating is maintained.
Risk tips
The demand of passenger car industry is lower than expected, which affects the profit; The price reduction of main supporting vehicles affects profits.
