Xinquan Co., Ltd. (603179) Company Study： New Upholstery of Interior Decoration Takes Efficiency as Spear and Cost Control as Shield
Xinquan Co., Ltd. (603179) Company Study: New Upholstery of Interior Decoration Takes Efficiency as Spear and Cost Control as Shield
Both volume and price are rising, and the market share is rapidly rising.
The company is a domestic leader in autonomous interior parts, and is a Tier 1 supplier to large vehicle manufacturers such as Geely, SAIC, and the five largest commercial vehicles. It has been awarded the title of National Top 100 Component Suppliers for 12 consecutive years.
In recent years, the company’s market share has increased rapidly. From 2016 to 2019H1, the company’s passenger car dashboard market 杭州夜网 share was 2 respectively.
7% / 5.
6% / 5.
Benefiting from technological upgrades, the company’s unit price is in the rising channel. From 2015 to 2018, the average price of the company’s commercial vehicle dashboard assembly was 3% CAGR, and the average price of the passenger car dashboard was CAGR 18.
High R & D transformation efficiency is the company’s core competitiveness.
The research and development projects of interior parts suppliers are mainly used to develop subsequent new models of auto companies. Therefore, there is a positive correlation between the R & D expansion of the year and the next year’s revenue, and the correlation coefficient can reflect the R & D transformation efficiency of each company.
We fit the 2012-2017 interior decoration companies’ R & D supplements and next year’s revenue, of which Xinquan has the highest linear correlation, with R ^ 2 reaching 0.
92, indicating that R & D can be quickly converted into revenue.
We use the company’s per capita salary of the company’s R & D personnel to measure the amount of projects that the interior decoration supplier’s R & D personnel can complete in a year. From 16 to 18, Xinquan’s per capita R & D capacity has always been the first in the industry, and high efficiency guarantees the company’s future growth.
Cost control constitutes the company’s moat advantage.
As a third-party independent interior decoration company, the company’s cost control ability far exceeds that of comparable companies in the industry.
We use material utilization rate (= main business income / direct material cost) to reduce the company’s ability to control costs. The company’s average material utilization rate in 2014 is 2%.
07, far surpassing other comparable companies (average material utilization rate is 14 in 14-17).
The interior decoration industry has a large market space, which is expected to nurture the giant parts and components enterprises.
The value of interior decoration bicycles is high and the market space is large. According to the statistics of the China Automotive Industry Yearbook, in 2017, China’s domestic and foreign decoration components and components industry achieved a total operating income of 56.83 million yuan, ranking first in subdivided industries, and the interior decoration industry is nurturing zero.Fertile soil for widget giants.
The company’s main products include dashboards, door panels, pillar guards and other bicycles with a total value of about 4,000 yuan. The value of bicycles in interior trim parts is second only to seats. It has a bright future and is expected to gradually develop into a giant in the parts industry.
Profit forecast: We expect the profit attributable to the parent company to be 2 in 19-21.
4.8 billion, corresponding to PE of 13.
We are optimistic about the core competitive advantages of the company’s internal decoration industry R & D and cost control. It is expected to gradually cut into the supply chain of new OEM customers and grow into a giant in the parts industry.
Risk reminder: the failure of the model change of the supporting model, the model sales are expected to be lower; the price of raw materials fluctuates; the overall plate sales volume of the car changes.