\u3000\u3 Bohai Water Industry Co.Ltd(000605) 555 Ningbo Dechang Electrical Machinery Made Co.Ltd(605555) )
The main business of vacuum cleaner is stable, and the automobile motor welcomes the domestic alternative air outlet, which is covered for the first time, and is rated as "buy"
The company started R & D and manufacturing of vacuum cleaner motor. Through industrial chain extension and customer development, vacuum cleaner OEM is deeply bound, TTI is developing rapidly, and diversified small household appliance business cooperation hot has achieved a breakthrough. The company has cultivated automobile EPS and brake motor technology for many years and accumulated profound experience. It is expected to increase the loading rate of the system under the hot sale of new energy vehicles and usher in a large amount of domestic alternative tuyeres. The optimization of the company's business structure is expected to gradually increase the net interest rate. We expect the net profit attributable to the parent company from 2021 to 2023 to be 319 / 409 / 602 million yuan, corresponding to EPS of 1.68/2.15/3.17 yuan respectively, and the current share price corresponding to PE of 16.4/12.8/8.7 times. For the first time, give a "buy" rating.
The main business of traditional household appliances was basically stable, and the expansion of customers + categories was steadily promoted
The brand pattern of the global vacuum cleaner market is stable, and the concentration has increased steadily. TTI, the company's key customer, has always maintained the first global vacuum cleaner market share from 2016 to 2021, with obvious leading advantage. Benefiting from the trend of international brands to reduce management complexity, integrate supply chain and focus more orders on high-quality leading suppliers, we are optimistic that the company will expand its business with TTI to the field of garden tools, open up new customers such as shark ninja in the vacuum cleaner business and further build revenue increment. The business structure of vacuum cleaner is transformed from OEM to ODM + from dry machine to water machine, driving the steady increase of gross profit margin. Through cooperation with hot in the hair care appliance business, the revenue of diversified small household appliances will increase rapidly in 2020, and it is optimistic that the expansion of new categories such as electric fans and humidifiers will maintain rapid growth.
The station has a domestic alternative air outlet for automobile motors, which can be cultivated for many years
Driven by the hot sales of new energy vehicles, the loading rate of EPS system and brake by wire system has increased rapidly. With the superposition of domestic substitution logic, the company has ushered in the opportunity of automobile motor tuyere. Joint venture and foreign brands account for a relatively high proportion in China's EPS motor market, but the proportion of domestic brands has increased from 11.1% in 2010 to 19.0% in 2018. The trend of domestic substitution has emerged. Compared with the EPS motor head supplier Nippon electric, the company has the advantages of more cost-effective products, shorter decision-making chain and higher customer responsiveness. At present, the company's EPS motor has realized small batch production, and is optimistic about further developing head Tier1 customers such as Nextel, ZF and Bosch after large-scale mass production. In terms of brake motors, the company started earlier, benefiting from the hot sales of new energy vehicles, and the EHB penetration rate of offline control system has increased rapidly. We are optimistic that the company will gradually develop head tier 1 customers after mass production and supply of brake motors.
Risk tips: changes in tariff policies; Price fluctuation of raw materials; EPS motor business development was less than expected.
