Hetai (002402): 20191225 Hetai Event Review-Successful bid of approximately 1.5 billion BSH effectively validates the steady growth of the company’s traditional business
Event: On December 19, 2019, the company received a bid notification from BSH (Boxi Home Appliances Co., Ltd.) and determined 杭州桑拿网 that the company was BSH “PUMU Light 1.”
5 “winning unit, the total amount of this project is about 1.
9.3 billion euros, equivalent to about 1.5 billion US dollars, is expected to be completed in the fourth quarter since the mass production of the product.
This time the proportion of winning bids was increased by 13.
8%, expected to bring in nearly 40 million net profits per year: Assuming that the order is delivered on average every four years, the average annual delivery is about 3.
7.5 billion, accounting for 14 of the company’s total revenue in 2018.
04%, accounting for 21% of the revenue of household appliances intelligent controllers in 2018.
55%, which is expected to bring in nearly 40 million net profit contributions.
The four-year cooperation between the ranking company and the BSH company for the same project in 2015, the amount of winning bids (in RMB) increased by 13.
Earlier company in-depth reports mentioned that we believe that the company’s core customer market is stable, and some of them still have room to be doubled, and the increased cooperation between the establishment of the company and BSH is strong evidence.
The traditional business has grown steadily, and the improvement of the chip business is estimated: 1.
Leaders in the intelligent controller industry are concentrated, and it is expected to maintain a growth rate of nearly 30% in the next three years.
The sales price of home appliances intelligent controllers has gradually increased, and the share of smart controllers in home appliance costs has steadily increased.
As the leader of intelligent controllers, the company will expand to the industry scale growth in this field in the future, continue to expand the city share of core customers, continue to expand new customers in home appliances and automotive electronics and other new fields. The growth rate is expected to be much higher than the industry growth rate.We estimate that the company’s intelligent controller business will grow at a compound growth rate of nearly 30% in the next three years.
Chip business forecasting system.
The upgrade of military radar drives the rapid growth of phased array radar. As one of the three major domestic suppliers, Kunchang Technology is expected to follow the rapid growth of the military business. At the same time, Kunchang uses its existing experience to actively develop 5G millimeter wave chips and strive toEntering the main equipment supply chain, military and civilian use are expected to take turns.
The profit of the chip business accounts for about 1/3 of the company’s total profit, which is expected to restructure the company’s estimation system.
Investment rating: According to our calculations, the company’s net profit for 2019-2021 is 3 respectively.
300 million, of which the profit of traditional business in 2020 is 3.
600 million, chip business profit is 1.
200 million, given a “strong recommendation” rating.
Risk reminder: The company’s intelligent controller business share growth is less than expected, and upstream component prices have risen; automotive electronics controller R & D progress has fallen short of expectations; Kunchang Technology military business orders have fallen short of expectations, 5G chip R & D progress and 5G millimeter wave wavelength application progress have fallen short of expectations.