The first coverage report of West Pump Co., Ltd.: turbine housing, high nickel manifold and electronic water pump business are combined.
the company is deeply engaged in the high-end casting industry and is the leader of domestic automotive water pump. The market share of the company's automobile water pump and engine exhaust manifold is the first and second in China respectively.
the company is deeply engaged in the high-end casting industry and is the leader of domestic automobile water pump. The market share of the company's automobile water pump and engine exhaust manifold is the first and second in China respectively. The company's products can be immediately used by more than a dozen well-known enterprises in China, such as SAIC General Motors, FAW Volkswagen, Shanghai Volkswagen, great wall, Geely and so on, and more than 20 well-known enterprises, such as general motors, Volkswagen, Ford, DEUTZ, Fiat, Cummins, borgwana, Daimler, Volvo and so on, Customers include luxury, joint venture and independent brands
the demand for turbocharger housing continues to increase. Under the requirements of energy conservation and emission reduction, ultra small displacement turbocharged engines have become the main direction of industry development in recent years. Many mainstream car companies have launched 1.0t-1.3t displacement engines. At the same time, the engines equipped with the main market hybrid models are also mainly turbocharged. These two changes have further increased the demand for turbocharged shells. Since 2013, the company has supplied bog Warner, the largest turbocharger manufacturer in China. In 2017, 1.07 million turbine casings (+62%) were sold, and the average product unit price reached 350 yuan. With the improvement of capacity utilization, the gross profit margin of vortex casing is expected to further increase
the proportion of high nickel exhaust manifold has increased steadily. With the popularity of turbochargers and the improvement of thermal efficiency and performance of engines, traditional exhaust manifolds can no longer meet the requirements of working temperature. High temperature resistant high nickel ductile iron exhaust manifolds are imperative. The proportion of high nickel chemical products of the company continued to increase, which strongly supported the performance of the exhaust manifold business segment of the company
electronic water pump for new energy vehicles is the long-term logic of the company's development. The large volume of new energy vehicles makes the market prospect of vehicle electronic water pump broad. Compared with the situation that traditional fuel vehicles generally only need to be equipped with a mechanical water pump, because new energy vehicles need to accurately control the temperature of the three electric system, in the case of water cooling, each vehicle needs an electronic water pump. At the same time, from the unit price, the electronic water pump can be increased from about yuan of the traditional water pump to about 300 yuan (60W power). In 2011, the company developed the first vehicle electronic water pump, and achieved mass supply for BAIC bjev and SAIC general motors
profit forecast and investment suggestions. Its comprehensive strength is at the forefront of its domestic counterparts. In the short term, there will be sufficient orders for turbine casings, the capacity utilization rate will be improved, and the gross profit margin will return to the industry average level; In the medium term, the hardness of exhaust manifold dental materials is high, and the unit price of products continues to rise; The long-term high-precision requirements of new energy vehicles on the thermal management system have greatly increased the value of vehicle water pumps per vehicle, and the advantages of our company's pressure shear testing machine have increased. We expect the attributable net profit to be 300/37/470 million yuan, corresponding to EPS of 0.90/1.10/1.40 and PE of 12.2/10.0/7.9 respectively. The first coverage will be given an overweight rating