\u3000\u3 Shengda Resources Co.Ltd(000603) 786 Keboda Technology Co.Ltd(603786) )
After 20 years of deep cultivation, we have built a car light control faucet
The company has been deeply engaged in the field of automotive electronic controller for nearly 20 years. At present, it has become a leading enterprise in China in this subdivision field. The ownership structure of the company is relatively concentrated, which is conducive to the stable development of the company. The company’s main businesses include automotive lighting control system, motor control system, energy management system and on-board appliances and electronics, and actively layout the global market. As of Q3 in 2021, the company’s performance growth tends to be stable, the enterprise management is gradually optimized, and the R & D investment is steadily increased. With the development of new markets and the promotion of new products, the company’s performance is expected to usher in new growth.
With the development of lamp market, the company’s lamp control products are upgraded again
Since its establishment, the company has always maintained in-depth cooperation with Volkswagen Group. Relying on the advantages of Volkswagen Group, such as strong financial strength, stable financial situation and broad market, the company has achieved rapid expansion in the field of automotive electronics. Through the global synchronous development of famous automobile customers in Europe and America, the company is now fully integrated into the high-end industrial chain system of the global automobile industry. In terms of lamp controller, the company’s LED main light source controller has gradually replaced hid main light source controller and become the company’s core product. At the same time, the LED main light source controller has been upgraded from the original integrated LED main light source controller (LHC) to matrix LED main light source controller, and has been equipped with a variety of models under FAW Volkswagen and SAIC Volkswagen, and the performance is expected to grow further. In addition, benefiting from the development of intelligent cockpit, the company’s atmosphere light controller ushers in a broad market space. After obtaining the fixed-point projects of SAIC Volkswagen, FAW Volkswagen and Volkswagen Anhui, the company’s related products may enter a high-speed growth stage with the arrival of mass production.
Horizontal expansion of business and simultaneous development of non light control products
In the direction of on-board electrical and electronic business, the company focuses on building a USB on-board device with high-speed transmission and communication interface, and has successively won the project fixed points of SAIC Volkswagen, FAW Volkswagen, FAW Hongqi, Byd Company Limited(002594) and other vehicle enterprises. The company may rely on the sales growth of the product to break through the growth bottleneck of the company in the business sector. In the direction of motor control business, the company has formed a dual growth mode of active grille air control system (AGS) and commercial vehicle national six products based on the national six policy. The company is expected to realize a new round of mass production of AGS products after the sixth round of reverse production and processing of AGS products. In addition, the company has begun to involve in the research and development of chassis domain controller, and has obtained the fixed point of Byd Company Limited(002594) multi model project. With the gradual mass production of the existing chassis domain controller fixed-point projects, the growth space of the company is expected to be opened, and the business segment may continue to bring new market opportunities and development power to the company.
Investment suggestion: the company is deeply bound to the automotive light control leader of Volkswagen Group. At the same time, the company continues to expand customers and product categories through diversified product layout. With the gradual relief of automobile core shortage and the continuous mass production of the company’s new products, the company’s performance is expected to usher in rapid development; Based on the light control market, the company is expected to open up growth space through diversified product layout. We estimate that the operating revenue of the company from 2021 to 2023 will be 3.05 billion yuan, 3.38 billion yuan and 4.06 billion yuan; The net profit attributable to the parent company is 420 million yuan, 530 million yuan and 670 million yuan; The corresponding PE is 48.9x, 39.2x and 30.8x respectively. With reference to comparable companies, the company will be given a PE valuation of 45 times in 2022, with a target price of 59.40 yuan. It will be covered for the first time and given a “overweight” rating.
Risk tip: the prosperity of the automobile industry is less than expected, the expansion of new customers is less than expected, the promotion of new products is less than expected, and the customer concentration is high.
