The development of new energy vehicles is in full swing.
After Huawei and Cialis successfully created the Wenjie brand, on August 6, Huawei and JAC Motors released the Xiangjie S9, as the first luxury flagship sedan of Hongmeng Zhixing, which pays more attention to the luxury experience and will further drive the sales of domestic high-end models.
With the continuous efforts of domestic car companies such as Huawei, BYD, NIO, and Ideal in new energy vehicles, it has also driven the performance growth of the domestic auto parts industry chain.
As an auto parts supplier, Shuanglin Co., Ltd. had a revenue of more than 2.1 billion yuan and a net profit of 248 million yuan in the first half of this year, a year-on-year increase of more than 280%, and its performance developed rapidly.
Shuanglin Co., Ltd.'s main automotive interior and exterior decoration and precision parts, intelligent control system components (automotive seat related products), new energy power system, wheel bearings and other four major auto parts business, is also entering the field of humanoid robot ball screw.
So, what about the performance of Shuanglin shares?
In 2023, the company will achieve revenue of 4.14 billion yuan, a year-on-year decrease of 1.1%; The net profit attributable to the parent company was 81 million yuan, a year-on-year increase of 7.6%.
In previous years, due to the drag of the gearbox business, the company's performance was not satisfactory, and this year will completely end this business, which is conducive to the recovery of performance.
Judging from the company's semi-annual report, the performance in the first half of this year was quite good, with an operating income of 2.103 billion yuan, a year-on-year increase of 15.73%, and a net profit attributable to the parent company of 248 million yuan, a year-on-year increase of 282.89%, which is very eye-catching.
In terms of quarters, the attributable net profit in the first quarter was 78 million yuan, a year-on-year increase of 83.7%; The attributable net profit in the second quarter was 171 million yuan, an increase of 119.91% quarter-on-quarter and a year-on-year increase of 655.48%, with very good sustainability.
In the first half of this year, the reason for the company's performance growth is that in addition to the investment income of more than 87 million yuan and the reduction of costs during the period, the main reason is that the domestic automobile market is developing very well, especially the growth rate of new energy vehicles, which has an obvious driving effect on auto parts enterprises.
We also know that the profitability of Shuanglin shares has declined in the past few years, and now the gross profit margin is gradually recovering.
Since 2022, the steady increase in the company's gross profit margin is mainly due to the increase in the gross profit margin of the wheel hub business. In the first half of 2024, the company's gross profit margin will reach 19.93%, which has exceeded the gross profit margin level in 2020 and has the potential to become the next Tuopu Group.
In the first half of this year, the net profit margin reached 11.83%, and after removing the impact of the investment income of the subsidiary, we concluded that the non-net profit margin also reached 7.53%, which is close to the highest level in the company's history in 2015, and it is clear that the company's profitability is gradually recovering.
Shuanglin Co., Ltd. was able to achieve such a good performance in the first half of this year, which is obviously closely related to the company's market competitiveness in the auto parts market.
First of all, we will continue to make technological breakthroughs to achieve domestic substitution.
The development of the automotive industry, especially in the field of new energy vehicles, is changing with each passing day, and Shuanglin Co., Ltd., as an auto parts manufacturer, must also keep pace with the times, continue to carry out research and development of new technologies, and has also achieved very good results.
For example, in the field of automotive seats, the seat horizontal driver (HDM) is an important component, and its market share has long been maintained in the hands of Japanese, European and American manufacturers, and there are very few domestic suppliers.
Through continuous technology research and development, Shuanglin Co., Ltd. has reached the world's advanced level in various indicators of the company's products, and the company's HDM products have a market share of 27.7% in China, ranking first, realizing domestic substitution.
Secondly, we will continue to expand customer resources, and the proportion of domestic independent automobile brands will gradually increase.
With the continuous mass production of Shuanglin Co., Ltd. in many projects such as seat intelligence and power system, the company has a very stable customer base.
In terms of auto parts supplier customers, the company's cooperative customers include Freia, United Electronics, Autoliv, Mahle, ZF, Lear, BorgWarner, Adient, Magna, Valeo and many other world-renowned first-tier suppliers of parts, and entered the supply chain of well-known brands such as Tesla and Wenjie.
In terms of automobile OEMs, the company's customers include SAIC-GM-Wuling, Volkswagen, Changan, FAW, Great Wall, Beijing Hyundai, Geely, NIO and other mainstream domestic and foreign OEMs.
Third, the company has a forward-looking layout of the Thailand factory and actively responds to overseas markets.
Shuanglin Co., Ltd. is also expanding its business in overseas markets, and the monthly output of the company's Thailand factory is expected to reach 45,000 sets after mass production, and has obtained the export certification qualification of United States Customs, which is enough to cope with potential market changes.
At the same time, the company plans to build a new automotive seat horizontal drive plant in Thailand, which will mainly supply parts required by Tesla, which will help maintain the stability of overseas business.
Shuanglin shares in the first half of this year's performance is so good, what are the next performance growth points?
First of all, the company's interior and exterior trim parts have risen steadily.
As the most direct appearance of automobiles, interior and exterior trim parts are one of the important factors that consumers value when buying a car, and the domestic market size is expected to reach 182.4 billion yuan in 2026, growing steadily.
Shuanglin Co., Ltd. has an annual production capacity of up to 20 million sets of interior and exterior decorations, and has independent research and development capabilities in technology, and its products are supplied to Wuling, Volkswagen, Geely, Changan and other leading automobile manufacturers, and its main business is very stable.
In the first half of this year, the company's interior and exterior decoration and mechanical and electrical components business revenue of 1.21 billion yuan, a year-on-year increase of 12.77%, gross profit margin reached 20.85%, profitability is also very good, exceeding the level of Tuopu Group, is conducive to ensuring the stability of the company's future performance.
Secondly, there is still room for improvement in the profitability of the company's bearing business and enter the field of lead screws.
As a very important safety part in the automobile, the wheel bearing products have a high technical content, and Shuanglin shares are one of the few manufacturers of energy production in China.
In the first half of this year, the company's hub bearing business revenue was 602 million yuan, which has obvious scale advantages compared with domestic counterparts such as Zhaofeng shares, Siling shares, and Reddick, and is in a leading position in the market.
At present, the gross profit margin of the company's bearing business is on the rise as a whole, but there is still room for growth compared with the 30% gross profit margin level of domestic counterparts, which is also the company's future net profit to further improve.
There are many parts of the ball screw and wheel hub bearings, the company established the ball screw bearing project in July 2023, and has now realized the manufacture of automotive ball screw prototypes, and is expected to achieve mass production capacity in December 2024, and the company is also promoting the research and development of robot roller screws.
Third, the new energy motor business has developed rapidly and has become a new performance growth point.
As the power source of electric vehicles, the new energy motor system is crucial. In 2015, Shuanglin Co., Ltd. acquired Deyang Electronics to have the R&D and manufacturing capabilities of new energy vehicle motors and electronic controls.
In September 2023, the company's 180 flat wire motor three-in-one axle platform will achieve mass production, mainly supporting Wuling Binguo series models; The 210 platform motor is in the development stage and is expected to be mass-produced in 2025.
Benefiting from the mass production of the 180 flat wire motor three-in-one platform, the company's new energy motor business has been profitable in the fourth quarter of 2023, and the revenue of the new energy motor business in the first half of this year was 227 million yuan, a year-on-year increase of 266%, becoming the company's best growing business, and the future space is worth looking forward to.
On the whole, Shuanglin shares actively follow up the trend of new energy and intelligence in the automobile market, and the profitability has gradually recovered, while benefiting from the development of the domestic new energy vehicle market, the humanoid robot market has also become an area that the company is about to make efforts.
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Source: Flying Whale Investment Research