\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 80 Wuxi Longsheng Technology Co.Ltd(300680) )
Event: the company released the performance express of 2021 and 22q1. In 2021, the operating revenue reached 930 million, a year-on-year increase of + 60.83%; The net profit attributable to shareholders of listed companies was 98 million, a year-on-year increase of + 81.94%. 22q1 realized a net profit attributable to the parent company of 27.0-33.38 million yuan, a year-on-year increase of + 26.82% – 56.78%.
1. EGR + new energy motor iron core drives the business to achieve rapid growth: the revenue in 2021 achieved significant growth, mainly due to the significant growth in the sales of the company’s new energy vehicle drive motor iron core products with the continuous development of the new energy vehicle industry; At the same time, with the implementation of national six emission regulations, EGR Technology route, as the mainstream technology route of national six, has promoted the substantial growth of the company’s EGR business. In the process of sharp rise in raw material prices, the company’s profit growth rate is greater than the revenue growth rate. We believe that it is mainly due to the expansion of the company’s revenue scale and the relative reduction of the four rates.
2. The motor iron core business of new energy vehicles has fully benefited from the popularity of new energy vehicles: the company was founded in 2004 and has always focused on EGR processing business. In 2018, it acquired Wuxi Weiyan, a new third board enterprise, which opened the expansion of precision stamping business. With its deep cultivation and accumulation of stamping technology in the field of passenger vehicles, it has developed the motor iron core business of new energy vehicles, won the designated position of major customers, and began to realize its performance in 2021. In November 2021, the company announced that it planned to raise an additional 716 million yuan, mainly for the expansion of motor iron core of new energy vehicles, and mainly produce permanent magnet synchronous motor iron core and AC asynchronous motor iron core products, so as to meet the needs of new energy vehicles for high-efficiency, high-density and high-performance drive motor iron core products. According to evtank data, it is estimated that the global sales volume of new energy vehicles will reach 18 million by 2025 and 40 million by 2030. The new energy vehicle industry and related supply chain industries have broad market prospects. Assuming that the demand for drive motor is 1.5 times that of new energy vehicles, and the core of drive motor is the core component of drive motor, the value of single core is expected to reach 600 yuan. In 2025, the market space will reach 10.8 billion yuan, with broad growth space, which is expected to drive the company to achieve secondary growth.
3. Light truck EGR leader benefits from the popularization of national six: as an important link of tail gas emission, EGR is only used for light trucks less than 3.5t in the case of national four and five. The requirements of national six stage emission regulations are stricter, and light trucks more than 3.5t also need to popularize EGR, with a significant expansion of market capacity. Facing the new market of more than 1 million vehicles, the company fully enjoys the road of industrial development, and the leading effect is prominent. In 2021, the company achieved a revenue of 220 million, a year-on-year increase of + 55%.
4. With the in-depth cooperation with Bosch, the natural gas rail is expected to further bring performance increment: the natural gas rail is similar to the high-pressure common rail system in the heavy truck of diesel engine. Bosch accounts for 95% of the market in the high-pressure common rail system and has an absolute monopoly position. The company has established a deep cooperation relationship with Bosch to supply natural gas rail assembly business. In the future, with the increase of natural gas heavy truck penetration, it is expected to further drive the performance increment.
It is estimated that the parent company’s “pe9 / 2.2 billion” investment strategy will maintain a total of 2.2 times of the parent company’s net profit in 2022.
Risk tip: the sales volume of customers is less than expected, the popularization of new energy is less than expected, and the price of raw materials increases.
