\u3000\u3 Shengda Resources Co.Ltd(000603) 936 Bomin Electronics Co.Ltd(603936) )
Event: Shenzhen Bomin, a wholly-owned subsidiary, received the fixed-point development notice of Xiaopeng automobile and became a supplier of relevant parts and components of Xiaopeng automobile F30 and E38. The project life cycle is expected to be 5 years and the project transaction amount is expected to be RMB 250300 million.
Xiaopeng’s fixed-point cooperation highlights competitive advantages, and the layout of new energy vehicles is constantly consolidated. In recent years, relying on the patented product “strong and weak current integrated special circuit board” of PCB business group, the company actively seeks to provide one-stop services integrating design, production, electronic assembly and commissioning for new energy vehicle customers, seeks to transform its role as a professional PCBA solution supplier of new energy vehicle power control module, and is committed to solving high-density intelligent printed circuit board and reliability problems. Its business covers battery pack, BDU PDU, OBC, VCU, etc.
Shenzhen Bomin locates the production of special performance sectors such as special circuit boards, metal substrates, high-frequency boards, high-layer thick boards, double-sided ultra long boards, strong current boards and sample urgent parts. At the same time, it undertakes PCBA mounting and governs the micro core business department. Therefore, it can be judged that this Xiaopeng fixed-point project will not only stay in the PCB link, Moreover, the significance of this project is not fully reflected by the expected transaction amount of 250300 million: car enterprises are very cautious about the certification and import of upstream parts, especially the parts with safety design such as three electricity system. It is difficult to verify and has a long import cycle, which provides a natural competitive barrier for enterprises that have achieved a breakthrough. This time, the company obtained Xiaopeng’s fixed-point development cooperation, It fully reflects the company’s competitive advantage in the field of new energy vehicles. The company’s R & D, technology and production capacity have been recognized by Xiaopeng. The cooperation between the two sides will continue to deepen, which will play an effective and sustainable role in promoting the company’s future business performance. More importantly, the cooperation between the company and Xiaopeng is expected to form a benign demonstration effect. At the time of the outbreak of the new energy vehicle industry, the value of the company’s past layout is gradually reflected, and the proportion of the company’s automotive electronics revenue is expected to continue to increase in the future.
In addition to traditional circuit boards and PCBA products, the company’s exclusive ceramic lining products also have great market promotion space. High voltage SiC and IGBT devices will be more and more widely used in high-performance new energy vehicles in the future. The normal working temperature of these devices is more than two or three Baidu, and the heat dissipation requirements are very high. Ceramic lining sector is the best bearing of these power device products at present. At present, the company has obtained supply orders from many downstream heavy customers, and Xiaopeng’s fixed-point for the company will pave the way for the future promotion of ceramic lining sectors in terms of customer relations and new product introduction.
The prototype of one-stop service provider has emerged, and the solution business continues to advance. In recent years, the company has continuously extended to the upstream and downstream of the industrial chain through both endogenous and extension. At present, it has formed a one-stop supply business model of “solutions + PCB + components + electronic assembly”. In particular, the solution business group mainly composed of Juntian Hengxun, bosmin, Yigan and microchip business division has entered a continuous advanced growth stage, and the synergy with PCB business group is also strengthening, With the continuous implementation and deepening of the layout of solutions in the field of new energy vehicles, the growth track of the company’s two wheel drive is becoming clearer and clearer.
In the era of Internet of things or upgrading the logic of PCB industry, the company’s technology oriented advantages are expected to continue to strengthen. With the advent of the era of the Internet of things, the downstream market of PCB will develop towards diversification and fragmentation, which will drive the competition in the relevant PCB market from standardization, large-scale production and cost priority to niche, customization and technology first. In the past few years, Bomin’s layout in the PCB field has always been guided by technology upgrading, including the development of strong and weak current integrated special circuit boards and the breakthrough of second-order and third-order HDI technology, This will be the core help for the release of the company’s new capacity in the future.
Profit forecast and investment rating: maintain the buy rating. In recent years, the company has continuously obtained new customer orders in the main business of HDI and the related fields of vehicle mounted, special and military PCB, and the business field has been extended back to many fields such as electronic control board, integrated embedded PCB, power semiconductor substrate and so on through several sub business departments. The development of the solution business group has entered an accelerated period, and it is expected to form a good trend of simultaneous development in many fields in the future. It is obvious that the length and depth of the industrial chain are the important points that distinguish Bomin from other traditional PCB companies. We expect the company’s performance in 20202022 to be 324 million, 460 million and 583 million respectively, and the current share price corresponds to pe2.0 million 61, 14.50 and 11.43 times, maintaining the buy rating.
Risk tips: (1) the growth rate of production capacity of Jiangsu Bomin is lower than expected; (2) China’s automobile electronization rate and the progress of on-board PCB promotion are less than expected; (3) The expansion of new customers is less than expected.
