\u3000\u3000 Ikd Co.Ltd(600933) (600933)
Event: the company plans to publicly issue convertible corporate bonds, and the raised funds shall not exceed 1.6 billion yuan (including 1.6 billion yuan). After deducting the issuance expenses, all of them will be used for the Ikd Co.Ltd(600933) Intelligent Manufacturing Technology Industrial Park Project (hereinafter referred to as the “project”). After the completion of the project, the production capacity of 7.1 million new energy vehicle battery system units, new energy vehicle motor shells, new energy vehicle body parts, new energy vehicle electronic control and other shells will be added.
After the project is put into operation, the layout of the company in the field of new energy will be expanded. According to the data of China Automobile Association, the penetration rate of Shanxi Guoxin Energy Corporation Limited(600617) vehicles in 2021 will be 13.4%, an increase of 8pct compared with 2020. With the rapid development of the new energy industry, the relevant aluminum die casting products for electric vehicles are still in the process of upgrading and changing, which puts forward higher requirements for the development ability (capital + Technology) of suppliers, and is reshaping the pattern of the aluminum die casting industry. Some enterprises that have worked in the industry for many years and have the strength of R & D and synchronous development are expected to benefit. The company’s current new energy production capacity is mainly located in Ningbo No. 3 plant and some No. 5 plants. After the completion of the project, the company’s product structure will be enriched and help the company grasp the rapidly growing demand for new energy parts.
It is planned to purchase large tonnage die casting machines to enhance the competitiveness of the company in the field of integrated die casting. Considering the mileage, new energy vehicles have a higher demand for lightweight than traditional fuel vehicles. Integrated design, body structural parts, three electric system shell, chassis parts and other integrated die-casting solutions are becoming a new track for industry innovation. Integrated die casting process can simplify the supply chain and improve production efficiency, which is the general trend of the future development of the industry. According to the EIA information, the company plans to purchase 45 die-casting machines for this project, including 35 die-casting machines above 1000t, including 4 4400t, 2 6100t and 2 8400t, which can meet the production demand of relevant integrated die-casting products. In the past Ikd Co.Ltd(600933) traditional products were mainly small and medium-sized products, and now we are increasing the purchase of large tonnage die-casting machines, which reflects the company’s attitude of actively striving for the share of large and medium-sized new energy products in the industry product upgrading trend, and is expected to improve its competitiveness in the integrated die-casting field.
The company’s profit forecast and investment rating: the company’s current product expansion in the new energy direction is smooth, and the convertible bond project will meet the company’s growing demand for new energy production capacity and enhance the company’s competitiveness. Optimistic about the expansion and volume of the company’s new energy products in the future, it is estimated that the net profit attributable to the parent company from 2021 to 2023 will be 416 million yuan, 687 million yuan and 815 million yuan respectively, and the corresponding EPS will be 0.48, 0.80 and 0.95 yuan respectively. The closing price on January 12, 2022 corresponds to the PE values from 2021 to 2023, which are 38, 23 and 20 times respectively. Maintain a “strongly recommended” rating.
Risk warning: the sales volume of passenger cars is lower than expected; Rising prices of raw materials; Exchange rate fluctuations; Freight rate rise; The company’s new product expansion is less than expected.
