(Report Producer/Author: Soochow Securities, Huang Xili)
1 Luxury car high-end configuration, improve the driving experience
Air suspension system to achieve adjustable height of the body chassis. Some first-class models use air suspension configuration, the most obvious difference between air suspension and ordinary suspension is the use of air springs instead of metal coil springs, through the air pump to adjust the air volume and pressure of the air springs, change the hardness and elastic coefficient of the air springs. By adjusting the amount of air pumped in, adjusting the travel and length of the air spring, the vehicle chassis can be raised or lowered.
The air is better insulated and the stiffness changes continuously with the load. 1) The air spring is full of air inside, with compressibility, the effect of isolating vibration is better than that of steel spring, and it is not easy to transmit many small vibrations to the car through the uneven road impact, effectively improving driving comfort; 2) With the increase of load, the air inside the gas spring is continuously compressed, and the stiffness is constantly changing, which can achieve a non-linear stiffness curve, thereby improving the comfort performance of the ride.
Heavy-duty commercial vehicles are required by regulations to be installed, and passenger cars are mainly equipped with high-end models. According to the disclosure of Zhongding Shares, 100% of medium-sized buses and above in the developed market have adopted air suspension systems, and more than 40% of buses, trailers and tractors have adopted air suspension systems. In the mainland, according to the national standard "GB7258-2017" promulgated in 2017, from January 1, 2020, more than 12,000kg of dangerous goods transportation semi-trailers need to be compulsorily installed air suspension.
High costs lead to low penetration and a lot of room in the passenger car market. The supply price of the air suspension complete system is about 12,000-14,000 yuan, and it is currently mainly assembled in the BMW 7 Series, Mercedes-Benz S-Class, Range Rover and other luxury models of more than 700,000 yuan in passenger cars. With the intensification of market competition in the new car-making forces, functional differences have become the selling point of major car companies, the demand for air suspension has increased significantly, and the price range has continued to decline. According to our calculations, the national passenger car air suspension penetration rate will be about 1.8% in 2021, and the penetration rate after deducting imported cars will be about 0.7%, which has a lot of room for growth.
2 The system is complex, improving comfort + handling
Spring + shock absorbers form the chassis suspension system, where stiffness and damping coefficients together affect comfort and handling. For the car chassis system, comfort and handling stability are difficult to meet at the same time, they are determined by the stiffness of the spring and the damping coefficient of the shock absorber: 1) The smaller the stiffness of the spring, the closer the natural frequency on the spring to 1Hz, the smaller the resonance brought by the road impact during the vehicle driving, that is, the better the comfort, but too small the stiffness will make the vehicle attitude difficult to guarantee, bringing serious problems such as high-speed cornering roll. 2) The greater the damping ratio of the shock absorber, the better the responsiveness of the vehicle's steering, and the handling stability will be improved, but it will bring about a decrease in the comfort of the whole vehicle.
The parameters of the passive suspension system are fixed, and the parameters of the active suspension system are adjustable. For passive suspension systems, vehicles must be designed with a balance between comfort and handling, which also brings about the stylistic differences in chassis suspension between different brands. When one of the parameters of the spring stiffness and the damping coefficient of the shock absorber is adjustable, it is a semi-active suspension, which is generally adjustable, such as the CDC damping continuous variable system and the MRC electromagnetic induction suspension system. If the spring stiffness and damping coefficient can be adjusted, it is active suspension, which generally refers to the addition of a variable stiffness air spring on the basis of a variable damping shock absorber to form an air suspension.
Adjustable air suspension parameters improve ride comfort and handling. In addition to upgrading the original mechanical coil spring and passive shock absorber to air spring + electronic damper, the air suspension also adds a set of air supply system and complex electronic control system, so that the air spring can effectively change the height and stiffness of the body through the filling and release of the air pressure in the spring, and the electronic control shock absorber can adjust the softness and hardness of the suspension through the change of the damping system, and the two work together to improve the comfort and handling of the ride.
The system composition is complex, and multiple components work together to achieve parameter adjustment functions. The main components of the air suspension system consist of an air supply system (compressor, gas receiver, distribution valve), ECU, air spring, CDC shock absorber, various sensors and related supporting pipelines. The ECU receives signals from various sensors, determines the state of motion of the body (speed, acceleration, road impact, etc.), and adjusts the state of the chassis. The compressor provides an air source, inflates the airbags through a distribution valve to adjust the stiffness of the air springs and the height of the body, and adjusts the parameters of the suspension in real time by adjusting the size of the damping coefficient of the CDC shock absorbers.
Air springs adjust the height of the body to ensure constant height for different loads. In the air suspension system, the component responsible for the height adjustment of the body is the air spring, the spring with the increase of the load, the compressed air pressure in the container increases, the stiffness also increases; the load decreases, the spring pressure also decreases with the decrease of the air pressure, the overall is used to adjust the height of the body, according to the different structures, mainly divided into bladder type and membrane type two.
Bladder air spring: consists of a rubber airbag with a cord sandwich and compressed air enclosed in it, the inner layer of the airbag is made of airtight rubber, and the outer layer is made of oil-resistant rubber. There are single sections and multi-section types, the inter-section belt ring is used to prevent radial expansion, and to prevent the inter-section rubbing each other, and the upper and lower covers are set up to seal it, the more sections, the better the elasticity, but the sealing is poor, mostly used on commercial vehicles. (Source: Future Think Tank)
Membrane air spring: The airbag consists of a rubber diaphragm and a metal press. Compared with the capsule type, its stiffness is small, the natural vibration frequency of the body is low, the size is small, it is easy to arrange, and it is mostly used in passenger cars. However, the cost is expensive and the life expectancy is short.
The electronically controlled shock absorber changes the cross-section to achieve a change in the damping coefficient, and determines the suspension softness and hardness according to the driving state. The mainstream product of the electronically controlled damper is the CDC (Continuous Damping Control) of ZF Sachs, which checks the road surface 100 times per second, changes the size of the internal valve according to the data of the sensor, thereby changing the flow size, and then changes the damping affects the softness and hardness of the suspension, achieving: 1) anti-roll when cornering; 2) reducing the nod when braking; 3) improving riding comfort and other functions.
The gas spring is responsible for steady state control, and the electronically controlled shock absorber is responsible for transient control, and the overall performance improvement is achieved by working together. The control strategy of the air spring is "steady state control", non-"transient control", the vehicle is in a stable driving condition, and only then will the ECU issue instructions to charge/deflate the gas spring. When the vehicle is continuously bumpy on the road, or when turning, braking and other dynamic conditions, the electromagnetic shock absorber can cope with different states by instantaneously adjusting the size of the damping, so the air spring is often used in conjunction with the electronically controlled damping.
The air compressor provides compressed air, which is held and limited by a pneumatic exhaust valve. The air compressor is the core of the air supply unit, the compressed air is generated by the unipolar reciprocating piston compressor, in order to avoid condensate caused by the compressed air causing rust of the components, an air dryer must be used to dehumidify the compressed air. In order to improve the reliability of the system operation, the cylinder head of the air compressor is installed with a temperature sensor to avoid overheating damage caused by the long-term operation of the compressor, and at the same time, the role of the pneumatic exhaust valve is to maintain the remaining pressure and limit the pressure of the system.
Sensors sense vehicle status, and ECU control enables electronically controlled suspension stiffness and damping adjustment. Electronic control suspension controller (ECU) through the sensor and CAN bus acquisition height, speed, steering wheel angle, brake wheel cylinder pressure, driving mode, etc. as input signals, after algorithm processing, to obtain the best control signal to make the system control performance, through the drive circuit to control the solenoid valve power-on time or current size, and then adjust the gas spring inflation, deflation, or adjust the damping force of the shock absorber, to achieve the role of adjusting the suspension stiffness and damping.
The conventional suspension is available in split/one-piece forms to maximize the use of chassis space. For traditional suspension, there are two types of structures, one-piece and split, which are determined according to the chassis design of the vehicle. 1) For the front suspension: because the design space is relatively compact, the integrated design of the coil spring + damper integration is generally adopted; 2) For the rear suspension: the split structure design of the spring and the damper separation is generally adopted, which can maximize the use of the rear axle layout space.
Air suspension in two forms, changed according to the space arrangement of the model. Air suspension also exists in the integrated / separate two layout modes, to meet the different space layout requirements of different models, there is an integrated air suspension that combines the electronic control damper and the air spring, which is generally used for the front suspension position, and the separation air suspension of the electronic control damper and the air spring is generally used for the rear suspension position, but if the rear suspension space is limited, the integrated air suspension (such as the four-wheel drive model of the Audi A6) will also be used.
3 Car companies require the division of supply to promote autonomous acceleration breakthroughs
The suspension system continues to be upgraded, doubling the value of the air suspension system. 1) The combination of coil spring + immutable damper used in passive suspension, the value of the bicycle is about 1400 yuan; 2) semi-active suspension upgrade CDC shock absorber, the value of the shock absorber single car is increased from 1000 yuan to 3000 yuan, and the body sensor is increased, and the value of the suspension system bicycle is increased by 2200 yuan; 3) the active suspension upgrade air spring, and a new set of air supply system (air compressor + air tank + ECU + air / signal pipeline) is added, and the value of the bicycle is increased by 4000 yuan.
Splitting supply accelerates the localization process of core units, and independent enterprises achieve mass production. The two core components of the air suspension system: air springs and air supply units have high technical barriers. In a long period of time, the assembly and accessories of the air suspension have been mainly overseas suppliers, and the value of bicycles is more than 10,000 yuan, and some are as high as 20,000 yuan. In order to reduce the configuration cost of the system, the OEMs give fixed points by splitting the assembly, which provides an opportunity for domestic local suppliers to break through at a single point.
Overseas suppliers are fully laid out, and independent enterprises have achieved fixed-point breakthroughs. Overseas suppliers such as Continental, WEBCO, WABCO, etc. have comprehensive supply capabilities covering ECUs, gas springs, shock absorbers, compressors, gas receivers, etc. Under the current trend of car companies splitting the air suspension supply, domestic independent suppliers have gradually achieved a fixed-point breakthrough in various parts. Zhongding Co., Ltd. acquired the German air suspension leader After the enterprise AMK, it has the core technology of the air supply unit; Baolong Technology is based on rubber parts and sensors, and has now successfully mass-produced core components such as air springs, air receivers, various sensors, and ECUs. Tianrun Industrial focuses on air suspension ECAS for commercial vehicles, with the production and development capabilities of air springs and distribution valves. At present, active shock absorber products are mainly CDC shock absorbers provided by ZF Sachs.
4 The market competition has escalated, and the demand + supply has accelerated its popularization
The quality of new energy vehicles has improved, and mileage anxiety has become the core concern of consumers. Driven by the dual policy + market, the penetration rate of domestic new energy vehicles has increased rapidly, from 2.7% in January 2020 to 20% in November 2021, and the quality of new energy vehicles has increased significantly compared with that of fuel vehicles. according to. In February 2021, the "China Automobile Dealers Association" released the article "How to Crack the Anxiety of New Energy Vehicle Mileage?" According to the results of the association's interview and survey on the experience of new energy vehicle owners, the most concerned issue for users when purchasing is "battery endurance", accounting for 31.8%, and mileage anxiety has become the core concern of consumers when purchasing new energy vehicles.
Reduce wind resistance + effective weight reduction, and the demand for air suspension in new energy vehicle companies has increased. 1) The most direct function of air suspension is the adjustable height of the body. When a car is driving at high speed, more than 60% of the power is consumed on the anti-wind resistance, and when the speed exceeds 200km/h, the energy consumption against the wind resistance accounts for more than 85%. Vehicles equipped with air suspension can lower the chassis ground clearance at high speeds, reducing wind resistance and thus reducing energy consumption. 2) Compared with the metal parts of the traditional suspension system, the air suspension system can effectively reduce the weight, thereby improving the mileage of new energy vehicles.
Consumption upgrading + independent brands make upward breakthroughs to jointly promote increased demand. According to the results of the "2021 Independent Brand Car Population Survey", from the perspective of car purchase factors, compared with traditional independent brands, intelligent technology and driving experience are the main selling points of independent new power brands and self-owned high-end brands, and air suspension meets these two needs at the same time. In the process of independent traditional/ new power brands constantly breaking through to the high-end, they also continue to provide consumers with a more comfortable driving experience and a higher "cost performance", making the market demand for air suspension increasing.
The price of the configuration model has dropped significantly, and the air suspension market space is vast. At present, the lowest price of all models equipped with air suspension in Weilai Automobile is 390,000 yuan; Hongqi's many electric vehicles are equipped with air suspension, and the lowest price is more than 400,000 yuan; Lantu FREE and Extreme Kr 001 are priced in the range of 300,000 yuan or less, although only medium and high can be equipped with air suspension systems, but compared with the high-end models that started at 700,000 in the past, the price has dropped significantly.
Increased demand + lower costs have jointly promoted the accelerated popularity of air suspension. Demand side: 1) mileage increase and weight reduction demand brought about by the increase in new energy penetration rate; 2) intelligent technology and driving experience demand brought about by consumer demand upgrade; 3) The "cost-effective" configuration demand brought about by the sudden breakthrough of independent brands to high-end jointly promotes the increase in air suspension demand. Supply side: 1) car companies require the assembly to split the supply, bringing about a breakthrough in the fixed point of independent suppliers; 2) the continuous decline in system costs brought about by domestic substitution, which further accelerates the popularization process of air suspension.
The penetration rate is expected to accelerate, and the empty hanging market has broad prospects. According to our calculations, as of December 2021, the air suspension penetration rate of the domestic new car market is about 1.8%, of which the market penetration rate of imported cars is about 25.3%, and the penetration rate of the domestic passenger car market is about 0.7%. With the accelerated popularity of air suspension, the penetration rate of the domestic passenger car market is expected to reach 11.6% in 2025, the market space is 16.3 billion yuan, and the CAGR in 2021-2025 is 51.3%.
5 Air suspension related company introduction
Zhongding shares
Leading sealing system technology leader in China, acquired AMG to enter the air suspension business. The predecessor of the company, Anhui Ningguo Seal Factory, was established in 1980, and in November 2006, it implemented a major asset restructuring with Feicai Shares, and changed the company name to Zhongding Shares in January 2007. In 2016, the company acquired a 100% stake in AMC in Germany, acquired power controllable systems such as air compressors, electric powertrains and other production capacity and global customers, and officially entered the air suspension business. At present, it has formed an enterprise group dominated by "fluid system", "noise reduction and vibration reduction and lightweight chassis system", "sealing system" and "air suspension and motor control system".
The company is a private enterprise, and the equity is relatively dispersed. According to the company's 2021 third quarter report, the actual controllers of the company are Xia Dinghu and Xia Yingsong father and son, and Anhui Zhongding holds 43.63% of the shares of Zhongding shares, which is the largest shareholder of Zhongding shares. Xia DingHu and Anhui Zhongding Trade Union each hold 53.74% and 46.26% of the shares of Anhui Zhongding. In summary, Xia Ding Lake holds 23.45% of Zhongding shares through the path of Anhui Zhongding Holding Co., Ltd., and is the largest shareholder of the company.
The main business is greatly affected by the fluctuation of raw materials, and the company's overall gross profit shows a downward trend. According to the 2019 annual report, the raw material cost of the company's products accounts for about 60% of the proportion of product costs, and the raw material prices are mainly affected by changes in international crude oil prices and natural rubber prices. Fluctuations in raw material prices can easily lead to an increase in the company's costs, resulting in a decline in gross profit margins. In terms of operating income, with the easing of the epidemic and the improvement of the prosperity of the automotive industry, the revenue in the first three quarters of 2021 was 9.340 billion yuan, an increase of 19.72% year-on-year, and the performance showed an upward trend. (Source: Future Think Tank)
Declining expense ratio: From 2016 to 2019, the company's management expenses showed an upward trend, which is presumed to be due to the adjustment of the management structure after the merger and acquisition and the integration of the internationalization of business systems. After 2020, with the integration of domestic and foreign business promotion and synergy effects, the overall expense ratio shows a downward trend, with the optimization of the architecture, the level of cost control is improved, it is expected to drive the net profit to continue to increase.
Baolong Technology
Seven ventures to expand the product line: The company was founded in 1997, the business is distributed in the OEM and AM markets. In the 24 years since its establishment, Baolong Technology has experienced 7 innovations, and its product line has expanded from valve balance blocks and exhaust system fittings to TPMS, sensors, automotive structural parts, intelligent driving systems and air suspension systems. The company has a high market share of valves, TPMS and exhaust system fittings. According to the prospectus, in 2015, the market share of the company's valve products in the domestic market reached 16.43%, the North American market reached 16.07%, and the European market reached 8.49%. In 2015, the company's domestic market sales share of exhaust pipe fittings reached 37.84%. According to the huajing industry research institute, the company's domestic market share (revenue caliber) of TPMS reached 29% in 2018, ranking first.
The strategy of the two modernizations focuses on the future of the blue ocean: According to the company's 2020 annual report, the company mainly develops in the two strategic directions of "lightweight and intelligent", of which lightweight products include hydroformed structural parts, and intelligent products include intelligent perception such as sensors, ADAS and intelligent active air suspension products. The 2021 interim report disclosed that the company's new business (sensors, ADAS, air spring vibration reduction, etc.) operating income reached 179 million yuan, an increase of 61.04% year-on-year.
Traditional & emerging businesses go hand in hand, revenue growth steadily: In 2020, the company achieved operating income of 3.331 billion yuan, an increase of 0.3% year-on-year, affected by the new crown epidemic in Europe and the United States, the company's overseas sales revenue fell by 7.4% year-on-year, traditional (TPMS, automotive metal pipe fittings, sensors and other products) and emerging business (lightweight components, ADAS, air suspension and other products) juxtaposed, making the company's revenue still in positive growth. Revenue in the first three quarters of 2021 was 2.839 billion yuan, an increase of 22.86% year-on-year, and TPMS/automotive metal parts/valves accounted for 33%/31%/18% respectively.
Gross profit level & R&D rate is higher than average, which is expected to form a positive cycle driven by R&D: in 2020, the company's gross profit margin reached 31.90%, higher than the industry average of 24.20% in the same period. The company's R&D expense ratio is much higher than the industry average. The high gross profit level provides stable support for high R&D expenses, and the technology and product landing brought about by high R&D further promote new profit growth points, thereby achieving a positive cycle and promoting the company's further development.
Excerpts from the report:
(This article is for informational purposes only and does not represent any of our investment advice.) For usage information, see the original report. ）
Featured report source: [Future Think Tank].