Baolong Technology (603197) Company In-depth Report: Tomorrow’s star of TPMS domestic leading automotive electronics

Baolong Technology (603197) Company In-depth Report: Tomorrow’s star of TPMS domestic leading automotive electronics

The company has a good product echelon, taking into account the short, medium and long term.

Traditional products include exhaust pipe fittings and valve valves, which have stable growth, outstanding profitability, and contribute to stable cash flow.

Short-term TPMS (Tire Pressure Monitoring System) benefit from the implementation of regulations and can quickly increase volume.

In the medium and long term, automotive electronics products such as sensors, 360 ° surround view systems, millimeter wave radars, and dynamic vision systems provide support for the company’s continued growth.

Core Competitiveness: ① As the technical barriers to exhaust pipe fittings and valve valve business decrease, but the company gradually achieves the top rank in the world in this segment, we believe that the core reason is that the company has gradually overcome at least the outstanding genes in the development process:Comprehensive management and operation capabilities, cost control capabilities, global supply capabilities, and rapid response customization capabilities.

② According to incomplete statistics, there are dozens of companies that have previously developed TPMS products in China, but there are still less than 10 companies that have achieved OEM mass production, and only Baolong has truly become a world-class supplier in the OEM market.(Ranked third in the world after a joint venture with Hoover).

Baolong defeated many opponents and became one of the oligarchs in the field of oligopolistic automotive electronics such as TPMS. This proves that Baolong must be exceptional and 厦门夜网 has accumulated deep automotive electronics technology and production processes.

TPMS, sensors, 360 ° surround view system and millimeter-wave radar mean are automotive electronics products. The company takes TPMS as the entry point. After mastering the core technologies and processes of automotive electronics, these applications can be used in other automotive electronics product development and development.On production.

TPMS benefits from compulsory installation of regulations, and gross profit margin may bottom out.

The policy stipulates that all passenger cars produced in China in 2020 must be equipped with TPMS. In 2018-2021, China ‘s TPMS penetration rate will recover 40% and rapidly increase to nearly 100%.

China’s TPMS market space will reach 36 trillion in 2021, and CAGR will reach 28% in 2019-2021.

The 重庆耍耍网 company’s TPMS revenue will grow rapidly and its gross profit margin will stabilize and rise. The driving factors are as follows: ① technology upgrades, the introduction of higher-performance, lower-cost replacement products.

② Regulations will promote the supplementary joint venture Huo Fu, sales volume will double, and the effect of scale will appear.

③ In the future, the after-installation market will drive the after-installation market. The company will increase the proportion of revenue of the after-installation market with a high gross profit margin.

④Improved customer structure. Before 19 years, the company’s customers were mainly independent brands, but after 19 years of joint venture with Huofu, it transformed Huofu into the supply chain system of German, BMW, Mercedes-Benz and other German brands.

Other automotive electronic products are poised for development, and the company’s bicycle supporting value has increased significantly, opening up long-term growth space for the company.

The senior management of the company vigorously develops the automotive electronics business. In addition to TPMS, it focuses on the development of sensors, 360 ° surround view systems, millimeter-wave radar, vehicle cameras and other higher-end intelligent driving system products (dynamic vision systems, etc.).

Sensors, 360 ° surround view systems, millimeter-wave radar, on-board cameras, and other higher-end intelligent driving system products are far more valuable than the company’s traditional products such as exhaust pipe fittings and valve nozzles.

At present, the company’s supporting vehicle value for all production products is about 600 yuan, but in the future, 360 ° surround view systems, dynamic vision sensors, millimeter wave radar and other new products can be mass-produced. The company’s product supporting vehicle value is expected to reach 3,000 yuan.

Traditional business is stable and profitable, contributing to stable cash flow, providing a certain margin of safety, and raising capital support for the company’s continuous research and development.

Traditional businesses such as exhaust pipe fittings and valve mouths have completed a series of market competitions, and global cities have a higher market share. According to estimates, the company ‘s global market share of tailpipes is about 21% in 2018, and the global market share of valve mouthpieces is about 13%.

The exhaust pipe fittings revenue is increasing every year from 2013 to 2018, with a GAGR of 13.

0%, valve revenue is increasing every year, GAGR is 12.

4%.

And the company’s exhaust system pipe and valve business profitability average annual gross profit margin of more than 36% in the past four years, while the average gross profit margin of the SW auto parts industry in the past four years is basically around 20%.

Investment suggestion: The company is an excellent automotive electronics company with a bottom and a growth elasticity.

The short-term TPMS benefits from the rapid implementation of regulations, and the gross profit margin may bottom out.

In the medium and long term, automotive electronics products such as sensors, 360 ° surround view systems, millimeter wave radars, and dynamic vision systems provide support for the company’s continued growth.

Traditional business is stable and profitable, contributing to stable cash flow, providing a certain margin of safety, and raising capital support for the company’s continuous research and development.

The company’s total revenue for 2019-2021 is expected to be 33 in turn.

00, 39.

63, 45.

00 trillion, the growth rate is 43 in turn.

20%, 20.

09%, 13.

53%, net profit attributable to mother in turn is 1.

35, 1.

70, 2.26 trillion, the growth rate is -12 in turn.

84%, 25.

84%, 32.

95%, current market value is 39.

800 million, corresponding to PE in order of 29.

5,23.

4, 17.

6 times, maintaining the “recommended” level.

Risk Warning: Accelerate the collapse of the automotive industry; New product development fails; New product development falls short of expectations

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