Top Group (601689): Lightweight chassis and automotive electronics become new profit growth points

Top Group (601689): Lightweight chassis and automotive electronics become new profit growth points

Core point of view Lightweight chassis and automotive electronics are new points of profit growth.

The company is a leading company in NVH, and is one of the few domestic manufacturers of synchronous research and development and system integration capabilities of NVH components. With its technical accumulation and customer resources in the NVH field, the company has expanded its lightweight chassis and automotive electronics business.

It is expected that the scale of new energy 西安耍耍网 vehicles will increase and the penetration rate of smart cars will increase. The company’s lightweight chassis and automotive electronics business are expected to grow rapidly, and it will be a new growth point for the company’s profits.

  The lightweight chassis business is expected to grow rapidly.

Energy saving and emission reduction and the increase in the scale of new energy vehicles will promote the use of lightweight chassis products.

The company adopts a variety of core processes and related measures to improve the technical level and quality of products for different product projects, which has an expanded competitive advantage.

The company acquired Fedona, expanded the chassis product line, and achieved synergies.

The company is a Tesla supplier. Through the gradual landing of the Tesla Shanghai factory, Tesla’s 杭州桑拿网 sales volume has expanded, and the company’s supporting volume has promoted a rapid increase.

  Layout of electronic products for smart car execution systems, profit growth.

The automobile intelligent driving execution system includes three core systems of intelligent driving, intelligent braking and intelligent steering. The company has deployed two areas of intelligent braking and intelligent steering.

In the field of intelligent braking, electronic vacuum pump EVP products have been mass-produced, and the intelligent braking system IBS is under smooth development.

The electronic vacuum pump is an important component of the chassis braking system. The sales volume of the electronic vacuum pump from 2014 to 2017 was 7th.

06 thousand sets increased to 37.

30,000 sets, an average annual growth of 73.


The company’s automotive electronics business revenue grew rapidly from 2014 to 2016, and it is expected to grow by more than 30% in 18 years and 19 years.

  NVH: Global presence and steady growth.

NVH products generally include shock absorbers and interior functional parts. NVH customers range from domestic customers to global counterparts.

Shock-absorbing products: GM E2XX, GEM platform mass production promotes scale improvement; interior functional parts rely on Geely to achieve growth, and profitability is expected to remain stable.

  Financial forecasting and investment recommendations As the passenger car industry’s sales growth rate is lower than expected, revenue is lower than the original model forecast, and the EPS for 2018-2020 will be adjusted to 1.

06, 1.

18, 1.

40 yuan (previous forecast 1).



70 yuan), comparable companies are parts and automotive electronics related companies, comparable companies 19 years PE average rating 22 times, given the company 22 times 19 years valuation, the corresponding target price is 25.

96 yuan, maintain BUY rating.

  Risk warning: NVH orders exceed expectations, electronic vacuum pumps, lightweight chassis sales are gradually expected, and price cuts on components affect profitability.