The M9 is equipped with new technologies such as HarmonyOS 4.0 intelligent cockpit, Turing intelligent chassis, intelligent lighting solutions and immersive head-up display system, and also has the world's largest integrated die-casting rear body "Xuanwu body".
Integrated die-casting, originally introduced into China by Tesla, has become the technology used in many new energy vehicles, and later domestic companies have also entered the market, Tuopu Group, Dolly Technology, Wencan shares, Guangdong Hongtu, Rongtai shares, Lizhong Group, Bojun Technology, etc.
From 2020 to 2022, Bojun Technology's revenue increased from 549 million yuan to 1.391 billion yuan, and the net profit attributable to the parent company increased from 67 million yuan to 148 million yuan, with the growth rate increasing year by year
After entering 2023, the performance has shown explosive growth, with a growth rate of nearly 100% for four consecutive quarters, with revenue of 1.701 billion yuan in the first three quarters of 2023, a year-on-year increase of 125.21%, and a net profit attributable to the parent company of 182 million yuan, a year-on-year increase of 103.07%.
How Bojun Technology achieved rapid growth
Performance growth must not be separated from the company's business and products, let's first understand what Bojun Technology does.
Bojun Technology's main business is stamping business, accounting for more than 90% of revenue.
The stamping business products include stamping precision parts and body modular products, which are divided into transmission, frame and other categories, including engines, shock absorbers, steering columns, brackets, etc.
Body modular products refer to the integrated structural parts formed by welding together multiple parts, that is, integrated die-casting related products, including side panels, rear side panels, floors, front longitudinal beam assemblies and anti-collision beams, instrument panel skeletons, etc.
The rapid development of Bojun Technology depends on the increase in sales of these two types of products:
First of all, stamping parts shipments increase as customer car sales increase.
The automobile manufacturing process is divided into stamping, casting, forging and extrusion, etc., stamping parts are the most widely used, an ordinary car needs about 1,500 stamping parts, and the value of a single car is more than 10,000 yuan.
In the domestic stamping parts market, foreign manufacturers such as Benteler, Magna, Leyobi and Gestamp have a large share of the domestic market due to their early start.
Domestic manufacturers mainly include Wuxi Zhenhua, SAIC Huizhong, Huada Technology, Duoli Technology, Bojun Technology, Lucky Technology and many other manufacturers, with different business and product types, and their market share is relatively scattered.
Compared with other domestic manufacturers, the revenue scale of Bojun Technology is still relatively small, but the auto parts industry mainly depends on customers and orders.
Because the revenue is directly linked to the accumulated number of customers and customer sales, Bojun Technology's customers include high-quality car companies such as Geely Group, BYD, Celis, Changan Automobile, Li Auto, Great Wall and first-tier suppliers such as ThyssenKrupp, Aptiv, and Nexteer.
Among them, Li Auto, Geely Group, BYD and Cialis are all major customers of the company, with revenue from Li Auto accounting for 31% in the first half of 2023, while Geely and BYD accounted for 20% and 5% respectively.
Since 2021, the sales of new energy vehicles have doubled, and BYD, Li and Cialis, which will rise in 2023, are all leaders in new energy vehicles, and the sales of stamping parts have risen with their increasing demand.
Secondly, the volume of body modular products is rapidly increasing.
Replacing hundreds or thousands of parts with a few body modular products can greatly reduce the welding steps and welding points, thereby reducing the weight of the body and increasing the range of the body, which is gradually developing into a mainstream automobile manufacturing method.
In 2018, Bojun Technology began to lay out the body structured product business, and began to form revenue in 2020, with revenue increasing from 45 million yuan to 540 million yuan in two years, with a compound annual growth rate of 246.4%, and sales increased from 1.98 million pieces to 34.76 million pieces, an increase of nearly 20 times.
In addition, the volume of body modular products is also improving the gross profit margin of the company's stamping business, and the gross profit margin of the liquid filling business has been dragged down to a certain extent before the body modular production capacity is not reached, and the gross profit margin of the stamping business has gradually increased after the scale effect has been reached.
Bojun Technology can continue to maintain performance growth
From the perspective of the new energy vehicle industry, new energy vehicles are better than fuel vehicles in terms of low carbon, environmental protection and intelligence, and replacing fuel vehicles will be an inevitable trend.
It is estimated that by 2026, China's new energy vehicle sales will reach 14.44 million units, with room for growth of several million units, so body modular products and stamping parts are still in a period of rapid growth.
From the perspective of specific customers, in 2023, the sales of major customers ideal, BYD and Cialis will all hit new highs, and sales are expected to achieve high year-on-year growth in 2024.
Li Auto will release new vehicles at the end of 2023, and deliveries are expected to start in February 2024, and four more models will be released in 2024 to continue to maintain growth momentum, with a target sales volume of 800,000 units in 2024, a growth rate of more than 100%.
Not to mention Cialis, M7 and M9 are both popular models, backed by Huawei, and new models may continue to be launched in 2024 to further improve the product matrix.
Bojun Technology is a supplier of modular body products for the whole car series and the Celis Wenjie series, and will enter the new car supply system in the future, and the performance growth is guaranteed.
From the perspective of orders, from 2023 to 2025, Bojun Technology's orders in hand are as high as 7.001 billion, in order to cooperate with customers and orders, the company will expand production capacity in Chengdu, Chongqing, Hebei, Changzhou and other places, and will reach production in 2024 and 2025 to help long-term growth.
Overall, Bojun Technology is a rapidly rising auto parts manufacturer in mainland China, integrated die-casting products have been large, benefiting from the expansion of the new energy automotive industry and the accumulation of customer resources, with sufficient orders in hand, and the future performance will continue to maintain rapid growth.
Finally, attached is the current valuation of Bojun Technology and the predictions that the brokerage has been predicting (for reference only):
On January 10, 2024, the price-earnings ratio TTM of Bojun Technology was about 32 times, which was in the historical undervaluation range, and according to the forecast of brokers, the net profit attributable to the parent company of Bojun Technology from 2023 to 2025 will be 289 million yuan, 434 million yuan and 589 million yuan respectively.
Special statement: The content only represents personal views and does not constitute any investment guidance, according to which you buy and sell, profit and loss at your own risk, the stock market is risky, and investment needs to be cautious!