桑拿

Rimage (603730) Investment Value Analysis Report: Expansion of Global Interior Segment Leadership Category Expected

Rimage (603730) Investment Value Analysis Report: Expansion of Global Interior 杭州桑拿 Segment Leadership Category Expected

The company is the world’s largest supplier of automotive sun visors. After the acquisition of Motus, the leader further increased and consolidated, and began global deep integration.

The company has grown into a sunshade faucet through in-depth matching. The same model is expected to be replicated in new products such as seat headrests and ceiling central controllers.

We forecast the company’s EPS for 2019/20/21 to be 1.

47/1.

77/2.

16 yuan, a reasonable estimate of 20 times PE in 2020, with a target price of 35.

4 yuan, the first coverage given a “buy” rating.

The company is the world’s largest automotive sun visor leader.

The company achieved revenue of 4.3 billion in 2018, an increase of 32%; net profit attributable to mothers5.

US $ 600 million, a year-on-year 北京夜生活网 decrease of 4%, is mainly due to the decline in gross profit margin and increase in management expenses due to the acquisition of Motus.

The company’s business is divided into three major segments, namely sun visor, headrest and ceiling central controller, which accounted for 62%, 20% and 14% of the company’s revenue in 2018, respectively.

The company’s revenue mainly comes from overseas, accounting for 80%, and its customers cover global mainstream brands such as GM, Ford and Volkswagen.

In 2018, the company completed the acquisition of multi-national company Motus’ merged sun visor related assets and business, becoming the world’s largest sun visor supplier with a market share of about 37%.

The size of the interior industry is stable, and the market share of Chinese companies is expected to continue to increase.

According to our calculations, the global automotive interior parts market size was 382.5 billion in 2018, of which the sun visor market size was 12.6 billion. It is estimated that by 2025, the sun visor market size will be 14.3 billion and the market will remain stable.

Due to the wide variety of interior trim parts and the low level of technical biology, the industry concentration has been reduced, and the industry CR3 is only 24%. Global leading trim parts suppliers have reduced the cost pressure, and their gross profit margins and net profit margins are generally not high.

Under the pressure of OEMs to reduce costs, the industry is expected to start integration, and domestic leaders with excellent operations have the opportunity to gain more market share.

The acquisition of Motus strengthens the leadership level and promotes global deep integration.

In 2018, the company became the world’s largest supplier of automotive sun visors by acquiring Motus, the second largest sun visor company in North America.

The company vigorously promotes the deep integration of the Motus business: 1) Optimizing the global production layout, adopting the local production of Motus Mexico’s factory floor sun visors, and the local production of the central controller of the ceiling to resist the risks of the empire trade war; 2) Optimizing the procurement channels to give play to scale advantages and reduceCost of outsourced accessories such as light bulbs; 3) Complementary advantages of equipment and molds, increase the automation rate of production lines, increase the self-production rate of molds and equipment, optimize production efficiency and equipment mold costs; 4) achieve cross-penetration of different businesses and customers, the companyIt is expected that Motus will penetrate the supply chains of European customers (Benz, Volkswagen, Peugeot, etc.) and North American customers (Toyota, Lexus, Subaru, etc.) to expand its supporting product categories.

Copying the “Amami” model, the category expansion is worth looking forward to.

The company’s sun visor business is excellent in operation and management, and has established a mature global supporting and synchronous research and development capability. Its penetration rate in the North American universal supply chain system has increased from about 60% in 2011 to about 70% in 2018.

Through in-depth support for GM, the company has established a good product reputation in the North American market, accelerating penetration of Ford and Chrysler; and began to enter the European market through the acquisition of Motus.

At the same time, the company’s products have also expanded from sun visors to head restraints and ceiling central controllers.

The company is expected to continue to replicate the “Rami” model of sun visor on new products. Among them, the headrest business has been fully supported by North America, and the revenue of the ceiling central controller business has continued to rise.

Risk factors: The global automotive industry is weaker than expected; Motus business integration is weaker than expected; new customer expansion is weaker than expected.

Investment suggestion: The company is the world’s largest automotive sun visor company. After the acquisition of Motus in 2018, the industry merger has further consolidated, and the global market share is about 37%.

The company continues to promote the deep integration of Motus visor business and optimize operating efficiency; it tries to further expand new customers and new products through its reputation in the North American market and Motus’ channels.

We forecast the company’s EPS for 2019/20/21 to be 1.

47/1.

77/2.

16 yuan, the current price corresponding to PE is 17/14/12 times.

The combined company’s performance growth rate and the industry’s average estimated level, we believe that the company’s reasonable estimate is 20 times PE in 2020, corresponding to a target price of 35.

4 yuan, the first coverage given a “buy” rating.