Joyson Electronics (600699): Global Quality Supplier of Automotive Safety and Automotive Electronics
Investment Highlights: Auto parts giant that has grown through mergers and acquisitions.
Joyson Electronics is one of the global automotive safety industry leaders and a leader in domestic automotive electronics business.
The company started from a small factory and gradually grew into a leading global auto parts manufacturer through the acquisition of high-quality assets at home and abroad.
The company’s main products include airbags, seat belts, steering wheels, driver assistance (ADAS), smart cockpits, connected cars, HMI, electric vehicles, functional parts and other components.
Major customers include BMW, Daimler, Volkswagen, Audi, GM, Ford, Toyota, Honda, Nissan and Mazda and other global OEMs and some domestic first-tier independent brands.
The acquisition of Takata accelerates integration, and the passive security market contributes solid revenue.
According to the company’s 2018 financial report, after the completion of the settlement of Takata assets, the company’s global market share of automotive safety business reached 30%.
At present, the company is actively integrating Takata’s high-quality assets with the original KSS passive safety business. Various measures have been taken to reduce operating costs and bring the profitability of the automotive safety business closer to the industry leader Autoliv.
The company plans to increase the market share of passive safety products to about 40% within five years and become the world’s largest supplier of automotive safety products.
Grasping the development trend of automotive electronics, early research and development projects have started mass production.
Joyson Electronics vigorously develops automotive electronics research and development, leading the technology industry.
According to the company’s 2018 financial report, the company’s connected vehicle (V2X) and new energy vehicle charging and discharging systems and other products have 杭州桑拿网 represented the industry’s highest level.
As of 2019H1, the company’s automotive electronics business has received more than 17.3 billion new orders (full life cycle), entering mass production in 2019-2021.
We judge that the automotive electronics business will become one of the company’s key development directions in the future. The company already has supporting capabilities for mass production in this field, and its development prospects are promising.
Earnings forecasts and investment advice.
Through mergers and acquisitions and integration, the company has become a global component giant with core assets.
It is expected that the company’s automotive electronics business will enter a new order production cycle from the research and development stage, and it is expected to contribute new growth points for the 南京桑拿网 company’s future development.
It is expected that the company’s net profit attributable to its parent in 2019-2021 will be 11 respectively.
3.6 billion, EPS is 0.
33 yuan, referring to the estimated level of comparable companies and considering the company’s higher growth, it will be given 18-20 times PE in 2019, corresponding to a reasonable value range of 16.
80 yuan, covering for the first time, given a “continuous market” rating.
Risks of integration; risks of exchange rate fluctuations; risks of fluctuations in raw material prices; risks of growth in global automobile sales caused by trade frictions; risks of slower-than-expected development of emerging areas and industries.