Joyson Electronics (600699): The controlling shareholder’s premium increased; showing the company’s development confidence

Joyson Electronics (600699): The controlling shareholder’s premium increased; showing the company’s development confidence

The company’s recent situation, Joyson Electronics, announced that Joyson Electronics, the controlling shareholder of Joyson Group, will block 17 through block transactions.

The price of 68 yuan was increased to 9 million shares (0% of the total equity).

69%), after winning the shareholding, the winning group and its concerted parties, Wang Jianfeng, accounted for 39% of the company’s total share capital.


  Comment on premium increase; highlight confidence in integration.

The increase in holding price is 17.

68 yuan, an earlier closing price premium of 6%, showing the controlling shareholder’s confidence in the company’s future development.

The integration of the company is actively progressing, and positive changes are reflected in all aspects.

According to the announcement on December 5, the company will introduce equity incentives in the functional parts company. We believe that if the Passive Safety and Automotive Electronics Division also introduces similar incentive measures, it will strengthen business integration and reduce costs and increase efficiency.
  Long-term optimistic about the company’s two major tracks of passive safety and automotive electronics.

We believe that the passive safety and automotive electronics sub-segments have a large value of supporting bicycles and there is a trend of product upgrades (such as more stringent collision regulations and automotive intelligence trends to promote human-machine interaction product upgrades), and the industry space is expected to further expand in the future.

From the perspective of the pattern, the two sub-sectors have high barriers to entry and the industry pattern is stable.

  At present, it is estimated that there is 成都桑拿网 sufficient upward space; the spin-off of the car-connected business may provide advance catalyst.

From the perspective of profit margins: 1) In 2018, the passive safety business (long-term caliber) revenue was 7 billion U.S. dollars. After deducting the impact of 1 billion U.S. dollars on the profitability of the benchmark Autoliv (5% net margin), we expect to winAnguimu’s net profit is expected to gradually reach 1.5 billion yuan.

2) Automotive electronics business (human-computer interaction + car audio and video entertainment system) 2018 revenue of $ 9.2 billion, strong product competitiveness, high-quality customers (BMW, Mercedes-Benz, Porsche).

  We expect that with the North-South Volkswagen MQB platform car audio and video entertainment system orders, Volkswagen MEB platform and Beijing Benz battery thermal management system new orders put into operation, revenue and net 深圳spa会所 profit will maintain rapid growth.

3) Functional parts business, 18 years of revenue of 3.6 billion US dollars, gross profit margin of 23.

3%, we expect to maintain solid growth.

On the whole, we believe that the company’s net profit will co-exist in the upward improvement space. The subsequent spin-off of the car-connected business and the recent overall upward adjustment of the automotive electronics sector will help provide a catalyst.

  Estimates suggest that we believe the company’s downward space is controllable, and the upward space is redundant, outperforming the industry rating again.

  The company’s net profit is expected to be 9 in 2019/2020.

500 million and 11.

5 trillion, the company currently corresponds to 22 in 2019 and 2020.

8x and 18.

8x P / E.

We maintain a target price of 20 yuan, corresponding to 27 in 2019 and 2020.

4x and 22.

5x P / E, 20% upside.

  The progress of risk passive security business integration exceeded expectations.