Bethel (603596): BBW: a new starting point for the next stop

Bethel (603596): BBW: a new starting point for the next stop

Investment Highlights: Raise target price to 32.

50 yuan to maintain the overweight level.

The company’s customers and products are continuously upgraded, and the company’s performance is expected to continue to grow at a high speed. The gradual landing of the wire-controlled business brake products, which is an important part of the intelligent drive execution end, will open up new space for the company’s expansion.

Maintain the company’s EPS forecast for 2019-2021 to 1.

03/1.

3/1.

62 yuan, with reference to comparable companies and considering the medium and long-term prospects of BBW, the company will be given a certain estimated premium and 25 times PE in 2020, with a target price of 26.

00 yuan increased to 32.

5 yuan.

  The customer structure was initially optimized and the product was continuously upgraded.

Relying on independent brands such as Chery Automobile and BAIC, the company gradually expanded to independent brands such as Geely, Changan, and Guangzhou Automobile, and then to mass-produced Jiangling Ford, Changan Ford and Dongfeng Nissan. The customer structure was gradually optimized; the company on the product side used disc brakeAt the beginning, it extended to electronic control products and lightweight products, and then to the officially released wire control products, the product’s profitability and technical content continued to increase.

  As an important execution transformation in the field of intelligent driving, the brake-by-wire system has been gradually promoted in this field to create new mid- and long-term growth points.

Intelligent driving includes sensor positioning, calculation planning, and control execution. At present, electronic throttle and steer-by-wire steering for control execution have begun to expand in scale, and the steer-by-wire industry is in its infancy.

The company’s Wire Control System (WCBS) has completed the research and development of prototypes, and officially released products in July 2019 to create new mid- and long-term growth points.

  Catalysts: new customer development, passenger car sales picking up, risk of landing of wire-controlled products 武汉夜生活网 prompted: customer impairment risk of bad debts, lightening downside risks of profitability caused by intensified competition