Asahi shares (603305): Backing Tesla to expand new customers, stable profit growth

Asahi shares (603305): Backing Tesla to expand new customers, stable profit growth

The core point of view is that the company is a domestic leader in precision aluminum alloy parts.

The company’s main products are the development and sales of die-cast precision aluminum alloy automotive parts and industrial parts. The products are mainly used in new energy vehicles and automotive lightweighting.

The proportion of revenue from the automotive business in 18 years was 79.

3%, the current main customer is Tesla, other customers are expected to expand each year, in addition to Tesla car company customer support will also be the company’s profit growth point.

At this stage, the Tesla package is the main source of profit.

The company’s products for Tesla include transmission systems, suspension systems, battery systems, electrical systems and hydraulic systems. The company’s products for this have gradually evolved from various parts to supporting system assemblies.

Due to the discontinuation of the low-profile version, sales of the Model S and Model X are expected to decline.

Tesla’s Model 3 and Model Y packages are the main sources of profit.

On May 31, 2019, Tesla announced that the domestic version of the Model 3 is officially accepting reservations. Based on the order volume at the end of the second quarter of 2018, irrespective of the order increase, Tesla delivered a total of 3Q2018 to 1Q2019About 170,000 Model 3s are in the funding-seeking state.

Considering the ramp-up of production capacity, the annual production and sales are expected to be about 300,000 vehicles.

The company disclosed that it is expected to get Y-type orders in the future, and the Y-type will be officially listed in the fall of 2020. It is expected that sales will increase rapidly after listing.

It is expected that the value of Model 3 bicycles will increase.

The company develops transmission case orders for Model S and Model X, and receives orders for Model 3 transmission cases. The company also develops inverter end covers and other components for Model 3.

The company has become a supplier of various parts of the Model 3. The conversion company has 南京桑拿网 deepened cooperation with Tesla, and the value of Model 3 supporting bicycles may increase further.

Expansion of other auto customer support will become a new point of profit growth.

In addition to Tesla, Magna, Polaris Industries, and Flextronics are also important new energy vehicle customers of the company.

In 2018, it cooperated with Ningde Times, Great Wall Motors, Eaton, Valeo-Siemens, etc.

Revenue from customers other than Tesla grew at an average annual rate of 75 from 2014 to 2018.

9%.

Against the background of the rapid development of new energy vehicle industries at home and abroad, actively developing new energy vehicle customers outside Tesla will become an important profit growth point.

Financial Forecast and Investment Suggestions: The EPS for 2019-2021 is predicted to be 0.

80, 1.

03, 1.

26 yuan. The comparable company is a new energy vehicle parts company. The average PE valuation of the comparable company in 19 was 37 times and the target price was 29.

6 yuan, for the first time give an overweight rating.

Risk reminders: Tesla’s supporting volume, Tesla’s supporting revenue, other automotive customer’s supporting volume is lower than expected, the risk of raw material price fluctuations, Tesla’s ModelY supporting risk, and the risk of trade war affecting the company.