Yingxi stock treasure hunt / electric vehicle sales increased steadily Parts stock value Bo

Figure: The analysis believes that China's electric vehicle market is huge, and related parts manufacturers directly benefit.

If this year will continue to be a big year for electric vehicles, I believe that not many analysts will oppose, according to a research report published by BloombergNEF at the beginning of the year, the global electric vehicle market will continue to grow rapidly this year. China continues to dominate this year, with global EV sales expected to approach 6 million units in 2022. As the tide rises, the entire industrial chain of electric vehicles can also benefit from it. Ta Kung Pao reporter Xu Lin

China's electric vehicle market is huge, and related parts manufacturers naturally benefit directly. Xie Mingguang, managing director of Yongyu Securities, pointed out that the so-called electric vehicle parts, in the past, the parts referred to were mainly divided into three categories: batteries, electronic controls and motors, but with the continuous advancement of technology, and the concept of automatic driving gradually became popular, such as electric power steering system (EPS), intelligent driving system, etc. are also regarded as important parts of electric vehicles.

There are actually a lot of shares listed in Hong Kong related to electric vehicle parts, but the performance growth in the first three quarters of last year was amazing, and there is a great opportunity to issue Yingxi shares before the announcement of the full year results, such as Minshi (00425) and Yingheng (01760). Minsit is engaged in the development and production of auto parts and molds, and is the supplier of more than 85% of the world's automotive brands, including Tesla and a number of large European and Japanese car manufacturers. In recent years, we have actively strengthened the development of new products and new technologies, and promoted new products such as aluminum door frames, aluminum battery boxes, radomes, active air intake grilles, and door systems, which have greatly increased overall revenue.

Minshi target price 51.2 yuan

UBS' new report pointed out that in terms of revenue, Minshi will become one of the world's largest battery box companies, expecting Minshi's earnings compound annual growth rate from 2021 to 2024, and return on equity from 12% in 2021 to 18% in 2024, so it raised its target price from 41.5 yuan to 51.2 yuan, and reiterated its "buy" rating, while adding it to the bank's Asia-Pacific focus list.

Xie Mingguang pointed out that Minshi's semi-annual results released in August last year showed that as of the end of June 2021, the turnover reached 6.66 billion yuan (RMB, the same below), up 37.3% year-on-year, net profit reached 901 million yuan, up 143.7% year-on-year; earnings per share were 0.783 yuan, with the introduction of new products and technologies, I believe that the annual performance will still have considerable growth. Most importantly, the current valuation of Minshi is a very large discount compared with the same type of companies listed on the A-share market, which is not reasonable, and it also means that the stock price still has room to rise this year.

In addition, Yingheng is also a very noteworthy stake, because many Chinese car manufacturers are looking to join the electric vehicle industry, but because the manufacture of electric vehicles involves many new technologies, and Yingheng's business is to provide customers with one-stop services for the production of electric vehicles through the technology sharing platform, including providing key automotive electronic components solutions for new energy, body control, safety and powertrain systems.

Yingheng's biggest advantage is its R&D capabilities, and has established a perfect R&D testing and verification center in Shanghai, covering the whole process and all equipment of R&D, testing and verification of core products such as electric vehicles and autonomous driving. As of the end of June 2021, Yingheng's turnover reached 1.321 billion yuan, up 52.8% year-on-year. Net profit was RMB63.437 million, up 41.1% year-on-year; earnings per share were 5.9 cents. Last year, before the announcement of the semi-annual results, this stock has already made a profit, and it is expected that the announcement of the annual results may bring surprises to shareholders.

Yingheng reasonable price 6.9 yuan

According to the research report of Shengang Securities, Yingheng is an undervalued automotive electronics solutions supplier, the company's positioning is flexible, heavy on research and development, light on assets, and the business is unique and competitive, and will continue to benefit from the increase in penetration of new energy vehicles in the future, but also benefit from the popularity of automotive ADAS (Advanced Driver Assistance System) and autonomous driving, so it gives a buy rating at a reasonable price of HK$6.9.