On November 30, 2021, Del Co., Ltd. (300473) issued an announcement that: Huaxi Securities Cui Yan Zheng Qingqing, ABC Huili Zuo Tengfei, Galaxy Fund Feng Min, Fugue Investment Luo Youjia, Quanshang Investment Wang Zheng, Zhonggeng Fund Wang Atao, Soochow Fund Liu Haoyu Cai Qiushi, Guojun Asset Management Ding Zhongyuan, Leying Capital Chen Guodong, Wukong Investment Jiang Jingwen, Peking University Founder Life Lu Xiaojing, Taiping Fund Xiao Chan, Hongsheng Fund Wu Binbin, Xincheng Fund Wu Zhenhua on November 29, 2021 to investigate our company.
The main contents of this survey are:
Q: Core products - material products
A: The company's heat insulation and noise reduction products business for traditional cars and new energy vehicles can be matched, the European market accounts for about 70% of the revenue of such products, north America and China's market share is relatively low, so the future expansion of the North American and Chinese markets is the top priority, revenue growth will be a relatively fast part; the other part is the incremental part of electric vehicles, including battery pack flame retardant, anti-electromagnetic interference and other materials, we got Volkswagen this year worth 75 million euros of fixed points, The breakthrough of other customers in the future is also a larger incremental part. The company grasps the characteristics of about 2,000 kinds of materials, and through the use of new materials (such as various new polymers, non-woven fabrics and innovative lightweight materials resistant to high temperatures), the improvement of manufacturing processes, the matching of new applications, etc., through the change of noise, temperature, size, weight, density and stability to significantly improve product performance, so as to obtain a new product.
Q: Core products - motors, electric pumps, electronic control products
A: The company is one of the few companies in the industry that has mastered the core technologies of motors, electronic controls, and pump products at the same time. In the existing steering system, transmission system field, the company has also made a breakthrough in the application of new energy thermal management system and electronic parking system, which will also be the company's new business growth point.
Q: Around new energy, where are our opportunities? Positioning, strengths and future development?
A: For the company, we still hope to be able to honestly do a good job in technology research and development, use technology to drive enterprise development, and promote industry progress. Most of the company's products can be applied to both traditional vehicles and new energy vehicles, and we will lay a good foundation based on existing fields, including materials science, acoustics, thermodynamics, machinery manufacturing, motor electronic control, etc. On the one hand, our advantages are reflected in the understanding and application of more than 2,000 kinds of materials, through 6 major processes to provide customers with customized product solutions; on the other hand, the advantages of mechatronics, we are one of the few pumps, motors, electronic controls are developed and produced by themselves, so not only in cost control has advantages, but also in performance improvement can also meet customer needs. In the future, we will further integrate global resources, develop material products in The North American and domestic markets and customers, and expand the market of motors, electric pumps and electronic control products in Europe.
Q: Is there a lot of pressure on our cost side this year and next? How to deal with the price increase of chips?
A: The biggest problem facing the company now is how to ensure the supply of insufficient chips, as for the price increase of other raw materials, we have formulated and implemented various cost control measures internally to further reduce production and operating costs; at the same time, we are also actively communicating with suppliers and clients to seek solutions that meet the current situation of both sides.
Q: Why did you want to acquire CCI in the first place, but now the business does not have strong product synergy?
A: What measures will CCI China localize in the next 2-3 years and achieve what status? In 2016 and 2017, our operating profit at that time was still good, and the products were mainly HPS hydraulic steering pumps. However, we are thinking of danger in times of peace, considering that the product may be affected by the iteration of the technical route, for the company's long-term development, mainly from two aspects of the acquisition of CCI: the first consideration is that CCI's products can be used whether it is a traditional car or a new energy vehicle, it will not be affected by the iteration of automotive power energy, and even the demand for CCI products in the era of electric vehicles is greater, because electric vehicles are more sensitive to noise, have higher requirements for sound insulation, and the impact of the thermal insulation performance of electric vehicles on the mileage is very large. The requirements for thermal insulation are also higher; the second consideration is that CCI's customer structure is mainly Mercedes-Benz and BMW, and the customer structure is of high quality, which can help our domestic products enter the international brand market. At that time, CCI only had Langfang factories in China to supply Mercedes-Benz, basically CCI was blank in the Chinese market, China occupied 1/3 of the global automobile market, CCI space in China was huge, and the European and American markets of the company's products were blank, forming a complementary role. After the acquisition, after a series of internal integrations, including running-in with foreign management, restructuring of assessment incentive mechanisms, optimization of supply chains and cost structures, etc., it seems to be working well. Now CCI has established a China business unit, in 2019 established a Chinese technology center, from Germany introduced a technical team to China, the next 1-2 years, China's R & D and sales team will continue to expand, only in this way can we keep up with the chinese vehicle supporting the development cycle and reaction speed of new models.
Q: How do we think about customers such as Tesla's new forces? Are rivian available?
A: This year, our battery protection cover products have been designated by Volkswagen and will be applied to Volkswagen's PHEV2 (B-GH) project. We will take this as an opportunity to develop the application of the company's related new energy products in other mainstream car companies.
Q: What are the models to be used for Toyota at the Winter Olympics?
A: Toyota delivered more than 200 "Costa Hydrogen Engine" buses to the Beijing Winter Olympics. The EHPS products provided by the company for the "Costa Hydrogen Engine" bus adopt a double pump redundancy design that meets the functional safety ISO26262 (in the case of a single pump not working, the other pump can replace the entire steering power system alone, providing double insurance for the steering power), ensuring the safe and stable operation of the vehicle in a cold environment and providing a safer guarantee for the travel of Dong'ao athletes.
Q: Thermal Management What products do we make?
A: In the thermal management system of the automobile, the electronic water pump assembly, the controller, the motor, the pump combination product company can provide. At present, the electronic pump assembly has been supplied in batches, and the electronic pump controller has been supplied to BYD (BYD) in batches. Based on the advantages of the company's electric pump products, the development space of the company's electronic pump products in the future is huge.
Q: Do we export domestic products? Will tariffs have a big impact on companies?
A: Domestic EHPS electro-hydraulic steering pump products are exported to the United States, and tariffs have a certain impact on the company.
Q: Do domestic non-CCI businesses want to focus on one product or multiple products?
A: For businesses other than material products, we still base ourselves on the product technology strategy of C (control) + M (motor) + X (pump products and actuators used in different fields of the car), deeply cultivate precision manufacturing, motors and electronic control technology, and expand the application scope of this technology.
The main business of Del Co., Ltd.: mainly engaged in the research and development, production and sales of automotive steering pumps and gear pumps.
According to the 2021 third quarter report of Del shares, the company's main revenue was 2.748 billion yuan, up 16.35% year-on-year; the net profit attributable to the mother was 30.3403 million yuan, up 151.18% year-on-year; the deduction of non-net profit was 15.3613 million yuan, up 122.14% year-on-year; among them, in the third quarter of 2021, the company's single-quarter main revenue was 827 million yuan, down 13.0% year-on-year; single-quarter net profit attributable to the mother - 978.58 million yuan, down 184.14% year-on-year. Non-net profit in a single quarter - 14.5228 million yuan, down 421.27% year-on-year; debt ratio of 54.69%, investment income - 1.6722 million yuan, financial expenses of 53.5406 million yuan, gross profit margin of 23.16%.
The unit has not had an institutional rating in the last 90 days. The Securities Star Valuation Analysis Tool shows that del shares (300473) good company rating of 1.5 stars, good price rating of 2 stars, valuation comprehensive rating of 2 stars. (Rating Range: 1 ~ 5 stars, maximum 5 stars)
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