Deepin * Company * Bethel (603596): EPB and lightweight drive high-growth smart driving prospects
The company issued a pre-announcement of results, and the net profit attributable to shareholders of listed companies in 2019 is expected to increase by 154.2 million yuan to 21.6 million yuan (+ 65% to + 85%).
The company’s performance has grown as expected and is expected to be driven by EPB and lightweight businesses, which will continue gradually in the short term.
The company will release its wire-control products in 2019, and it is expected to achieve mass production by 2021. The conversion company is one of the few domestic suppliers with a comprehensive layout in the areas of intelligent driving perception, decision-making, and execution.
We expect the company’s estimated earnings for 2019-2021 to be 1.
04 yuan, 1.
26 yuan and 1.
52 yuan, high-speed growth in short-term performance, intelligent driving continued to catalyze in the medium and long-term, maintaining a BUY rating.
The main points of the support level have experienced rapid growth and short-term expectations continue.
According to estimates, the company will achieve net profit attributable to mothers in 20193.
3.9 billion (+ 65% to + 85%), in line with our expectations.
Company Q4 achieved net profit attributable to mother 0.
33 ppm, a higher level than the previous month, compared with 2018Q4 (the current period withdraws asset impairment losses of 0.
8 billion) rapid growth.
The company’s performance is growing at a high speed. It is expected that it will be driven by EPB and lightweight businesses. There are too many short-term orders, and the high growth rate is expected to continue.
EPB’s independent and joint venture customers have developed smoothly, and production and sales are expected to grow rapidly.
The company started from brake discs and other products, and began to develop EPB products since 2006. It achieved mass production in 2012. It is the second and the first integrated EPB product in the world. Since then, products have continued to evolve, and dual-control EPBs have been developed.product.
At present, the penetration rate of domestic EPB products is about 30%, and it continues to increase rapidly. The company is the largest independent supplier of EPB in China, with sales of more than 600,000 units in 2018. Its supporting customers include Geely, Chery, GAC and other independent brands., Dongfeng Nissan and other joint venture brands, EPB production 成都桑拿网 and sales are expected to maintain rapid growth.
Lightweight customers and orders drive high growth.
Fuel consumption emissions and battery life of electric vehicles are two major challenges facing domestic auto manufacturers. Lightweighting is one of the keys to solving the problem.
Car chassis weight reduction can at least improve fuel consumption, cruising range, and lower unsprung mass can reduce improvement in comfort and prevent stability. Therefore, products such as steering knuckles, control arms, and sub-frames have a rapid increase in automotive aluminum penetration.
The company has been working in the field of lightweight for many years. A large number of cast aluminum steering knuckles are supported by high-quality customers such as GM, Volvo, and Ford Global.
Along with increasing customer orders and new projects such as SAIC, Geely, Changan, and BYD, the company’s lightweight segment revenue is expected to continue to grow rapidly.
The overall layout of intelligent driving has promising development prospects.
Automotive intelligent driving is mainly composed of three parts: perception, decision-making and execution. The company is one of the few comprehensive layout manufacturers in China.
On the execution side, the company has accumulated a lot in the braking field. In July 2019, the company has released WCBS wire-controlled products, and has obtained intent orders. It is expected to achieve mass production by 2020-2021.
With the rapid increase of the penetration rate of L3 and above autonomous driving, the expectation of BBW is expected to erupt and become the company’s medium- and long-term growth point.
On the decision-making side, the company has accumulated software and algorithm development technology for electronic control products such as ABS, ESC, EPB, etc. for many years.
On the perception side, the company has completed relevant layouts.
The company plans to become a leading domestic supplier of ADAS system integration. It has a comprehensive layout for sensing, decision-making and implementation, and has a promising future.
It is estimated that the company has sufficient orders such as lightweight, and we have raised its profit forecast. The company’s 2019-2021 earnings are expected to be 1.
04 yuan, 1.
26 yuan and 1.
52 yuan, maintain BUY rating.
The main risks faced by the rating 1) Car sales continue to be sluggish; 2) New business expansion is less than expected.