Soochow **shares*** Zeng Duohong, Xie Zhedong and Xu Junhe recently conducted research on Rujing Technology and released a research report "Acquisition of Minority Shares to Increase Profitability, Heat Pump Controller Faucet Accelerates Development", this report gives a ** rating to Rujing Technology, believing that its target price is 12000 yuan, the current stock price is 9087 yuan, the expected range of ** is 3206%。
Rujing Technology (301525).
Investment Essentials. Event: The company intends to acquire Rujing Electronic Control 26. held by Mr. Zhang Wei at a price of 50 million yuan67% equity, after the completion of the transaction, the company will hold 100% equity of Rujing Electronic Control.
The thermal management of new energy vehicles is in a period of rapid growth, and the acquisition of equity increases the profit attributable to the parent company. Founded in 2016, Rujing Electronic Control is mainly engaged in the thermal management business (compressor controller) of new energy vehicles, with customers covering Tier1 of head compressors such as Huayu Sanden and Shanghai Guangyu, and end customers covering mainstream car companies such as Tesla, Celis, SAIC, Geely, Volkswagen, and NIO. In 21-22 years, the new energy vehicle customers will be fixed-point and large, and the company's revenue will be 087/1.700 million, +295% +97% year-on-year, and is expected to further reach 300 million in 23 years. Looking forward to the follow-up space, the company's market share in 22 years is less than 6% (compressor controller sales and new energy vehicle sales), with the increase in the penetration rate of heat pumps in new energy vehicles + the increase in the share of new models, we expect the revenue CAGR in 24-26 years to be nearly 60%. Under the scale effect of 23H1, the gross profit margin has been raised to 24%, and the volume and profit are expected to rise in 24-26 years, and the company's acquisition of minority interests is expected to increase the net profit of the car business.
The HVAC R heat pump business is expected to enter the recovery track from Q2 onwards. The company's heat pump business is dominated by large customers in the European market, and the current core customer inventory is still being digested, resulting in Q3 order growth less than expected. We expect the destocking process to continue until 24Q1. Heat pump policies and subsidies in Europe and the United States stimulus + downstream leading customers to increase the medium and long-term production capacity layout of heat pumps, the track has medium and long-term certainty, the company's customers are in a good position, and the short-term pressure does not change the long-term upward trend.
Earnings** & Investment Rating: The equity acquisition will increase the company's net profit attributable to the parent company, and we will raise the company's net profit attributable to the parent company in 23-25 years to 26/3.8/5.300 million yuan (original value of 2.)6/3.5/4.900 million yuan), +20% +48% +41% year-on-year, corresponding to 34 23 16 times PE. Give 24 years 30 times PE with a target price of 1200 yuan, maintain the "** rating."
Risk warning: the macroeconomic downturn, the sales of new energy vehicles are less than expected, and the heat pump depot is less than expected.
A total of 3 institutions have rated the stock in the last 90 days, ** 3 have rated it;The average institutional price target over the last 90 days is 1203。
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