EN ENCN

Auto giants expand production capacity and new forces join the auto parts industry, which is expected to produce a global leading enterprise

Date:2021-11-26

On November 26, according to the environmental information disclosure platform of Shanghai enterprises and institutions, the phase II production line optimization project of Tesla Shanghai Super factory project (phase I) is undergoing environmental impact assessment publicity. The total investment of the production line optimization project is as high as 1.2 billion yuan. It is expected that the project will be completed in April next year. The move is intended to expand the production capacity of Tesla's Shanghai plant and alleviate the increasingly tight production capacity, so as to meet the market's rapidly growing demand for new energy vehicles.

As the wind vane of the new energy vehicle industry, Tesla's re expansion also shows that the new energy vehicle industry still has room for substantial growth. The auto parts sector, which is most closely related to it, has also continued to strengthen recently. In recent days, several stocks have been trading, such as Xusheng (603305), xingshuaier (002860), Ningbo Jingda (603088) and other stocks have followed suit, and the attention of the industry remains at a high level.

New energy vehicle market expansion

In addition to the expansion of production capacity by traditional giants, there are still capital ready to enter the field of new energy vehicles. On November 27, the Management Committee of Beijing Economic and Technological Development Zone signed a contract with Xiaomi technology, officially announcing the settlement of Xiaomi automobile in Beijing Economic Development Zone. It is expected to build Xiaomi automobile headquarters base, sales headquarters and R & D headquarters, build a complete vehicle factory with an annual output of 300000 vehicles in two phases, and raise the mass production time of Xiaomi automobile to 2024.

Meanwhile, the Ministry of Finance recently issued financial subsidies for new energy vehicles in 2022 in advance, covering 25 regions such as Beijing, Tianjin, Hebei, Shanxi, Liaoning and Jilin, with a total subsidy of about 38.5 billion yuan, and there is a trend to gradually focus on the production and manufacturing links and industrial chains of new energy vehicles.

Strong market demand has given giants and capital great hope. According to the data of the passenger Federation, the production and sales of new energy vehicles in China reached a new high in October, with a year-on-year increase of more than 130%; From the beginning of 2021 to September, the sales volume of new energy vehicles in China was 2.157 million, a year-on-year increase of 193.9%, and has maintained a positive growth month on month since April. From January to October this year, its penetration rate has exceeded 14% and is expected to exceed 20% next year.

With the continuous expansion of the new energy vehicle market, the demand for auto parts rises. According to the data of China Commercial Industry Research Institute, from 2016 to 2020, the sales revenue of auto parts in China increased from 3.46 trillion yuan to 4.57 trillion yuan, with an average annual compound growth rate of 7.2%. Under this trend, China's auto parts sales revenue is expected to reach 4.9 trillion yuan in 2021, and the parts industry will maintain an expansion trend.

It is expected to be a global leading enterprise

At present, many companies in the industry are highly competitive.

Sanhua Zhikong (002050) has benefited from the high vision of new energy vehicles, and the company's auto parts business has achieved rapid growth. In the first three quarters of 2021, the company realized an operating revenue of 11.72 billion yuan, a year-on-year increase of 36.39%; The net profit attributable to the parent company was 1.293 billion yuan, a year-on-year increase of 18.40%. The company focuses on the research and application of heat pump technology and thermal management system products. After more than 30 years of development, the company has established an industry-leading position in the field of global refrigeration appliances and automotive thermal management. The "Sanhua" brand refrigeration intelligent control components have become a world-famous brand, including electronic expansion valve, four-way directional valve The market share of new energy vehicle thermal management integrated components and other subdivided products ranks first in the world.

As a global first-class supplier of Tesla, Xusheng (603305) currently cooperates with all models sold by Tesla. Tesla's further expansion of production will greatly increase the company's order volume. In the first three quarters of 2021, the company achieved a revenue of RMB 2.012 billion, a year-on-year increase of 82.10%; The net profit was 332 million yuan, a year-on-year increase of 43.67%; Deduction of non net profit reached 314 million yuan, with a year-on-year increase of 46.07%. While introducing advanced technology, the company has developed and formed core technologies such as friction stir welding of auto parts, shell of battery system of new energy vehicles, gearbox and assembly production technology of new energy vehicles simultaneously and independently, which has improved the production capacity and product quality, so that the company's products can continuously meet the requirements of downstream customers.

Zhongding Co., Ltd. (000887) continued to improve its overseas production and operation this year. In the first three quarters of 2021, it achieved an operating revenue of 9.34 billion yuan, a year-on-year increase of 19.72%; The net profit attributable to the parent company was 818 million yuan, a year-on-year increase of 171.17%. The company has successively acquired well-known auto parts enterprises such as American MRP, German AMK and TFH, and now mainly covers many businesses such as thermal management, air suspension, lightweight chassis, sealing system and non wheel rubber. Among the "top 20 global non tire rubber", "top 30 Chinese automobile industry" and "top 100 global auto parts industry".

As the production and sales of new energy vehicles exceeded expectations, it played a certain role in thickening the performance of xingshuai'er (002860). In the first three quarters of this year, the company achieved a revenue of 1.059 billion yuan, a year-on-year increase of 58.01%; The net profit attributable to the shareholders of the listed company was 134 million yuan, a year-on-year increase of 51.14%; Deduct non net profit of 124 million, with a year-on-year increase of 56.04%. Its wholly-owned subsidiary zhete motor is engaged in the research and development of small and medium-sized motors and micro motors. Its products include permanent magnet synchronous new energy vehicle drive motors. It is one of the three core parts of new energy vehicles and has certain market competitiveness.

As an important link in the new energy automobile industry chain, auto parts have become the main investment direction in the next round of production capacity cycle of the industry, and it is expected to produce a global leading enterprise. The last decade has created a number of global leading companies such as Ningde times (300750). Minsheng Securities believes that the next decade will be the second half of the intellectualization and electrification of new energy vehicles, and will also create a new group of global auto parts leading enterprises. The auto parts sector will become the main investment direction of the production capacity cycle in the next 10 years.