\u3000\u3 Shengda Resources Co.Ltd(000603) 997 Ningbo Jifeng Auto Parts Co.Ltd(603997) )
With improved performance, grammer empowers to open the growth space of passenger car seats
Ningbo Ningbo Jifeng Auto Parts Co.Ltd(603997) is a leading supplier of cockpit interior trim in China. In 2019, it acquired Gramer, a German automotive interior giant. Its product matrix expanded from armrests and headrests to central control system, seat assembly, etc., and the value of single vehicle increased. Due to the epidemic and other reasons, grammer’s performance in 2020 was poor, but the performance improved in 2021 and achieved profitability Ningbo Jifeng Auto Parts Co.Ltd(603997) announced in October 2021 that it had obtained the order of new force seats for head car making, realized the breakthrough of passenger car seat assembly supply from 0 to 1, and opened the growth space of passenger car seats. At the same time, the company has actively arranged new interior products and new technologies, the hidden air outlet has been designated by many customers, and the interior products have been ordered by Weilai et5, which is expected to contribute to the performance increment in the future. We estimate that the company’s revenue from 2021 to 2023 will be 17.450, 18.725 and 20.814 billion yuan, the net profit attributable to the parent company will be 159, 434 and 693 million yuan, and the EPS will be 0.14, 0.39 and 0.62 yuan / share, corresponding to 64.7, 23.7 and 14.8 times of the current share price PE. We believe that the seat business may bring new growth space to the company and give the “overweight” rating for the first time.
Ningbo Jifeng Auto Parts Co.Ltd(603997) grammer strong alliance, seat and interior giants are ready to come out
Ningbo Jifeng Auto Parts Co.Ltd(603997) 2019 spent RMB 3.754 billion to acquire 84.23% of the shares of German automotive interior giant grammer, realizing global business layout, product expansion in multiple categories, and the average price of products has increased. Grammer implemented cost reduction and efficiency increase internally, and Ningbo Jifeng Auto Parts Co.Ltd(603997) enabled efforts to increase revenue and reduce expenditure. In 2021, grammer turned losses into profits, and the gross profit margin returned to the level before the epidemic. At present, more than half of grammer’s revenue comes from the European market. Through Ningbo Jifeng Auto Parts Co.Ltd(603997) further expanding the business network in China, the growth space is gradually opened.
A number of new cockpit products and technologies have been designated, and seats have contributed to performance increment
Grammer commercial vehicle seat has won orders for various medium / heavy truck models in China, Ningbo Jifeng Auto Parts Co.Ltd(603997) passenger car seat has achieved a breakthrough from 0 to 1, and armrest, central control, air outlet, etc. have won Weilai et5 orders. The company has actively deployed new technologies of intelligent cockpit such as passenger car seats, central control system, seat armrests, audio headrests and 3dglass glass technology. Among them, 3dglass has been designated by BMW, concealed air outlets have been designated by Volkswagen, Geely, great wall, Weilai and other customers, extended metal technology has been designated by Mercedes Benz, and passenger car seats and other products are expected to contribute to performance increment.
Risk tip: the sales volume of passenger cars is less than expected, the customer expansion process is less than expected, and the price of raw materials rises sharply.
