Asahi shares (603305): Asahi Dongsheng forging brilliant

Asahi shares (603305): Asahi Dongsheng forging brilliant

Supplier of core components for new energy vehicles.

The company’s main bearing die-casting precision aluminum alloy auto parts, began cooperation with Tesla in June 2013, entered the field of new energy vehicles, and transformed into a Tesla first-tier supplier. In 2018, Tesla’s sales revenue is expected to account for60% or more.

In addition, the company has not cooperated with Polaris, Weilai, Ningde Times, Great Wall Motors, Jianghuai Automobile, Zhejiang Zero Running and other manufacturers.

In the field of traditional automobiles, the company has started to communicate with auto brands such as Porsche, Mercedes-Benz and BMW, and actively develop traditional automobile customers.

Tesla Outstanding Partner.

In June 2013, Tesla looked for battery parts with the highest cost and higher yield in the world. Xusheng Co., Ltd. 15 plans to develop and develop qualified samples, and passed Tesla supplier certification in July of the same year.

In 2014, he participated in the research and development of Model S accessories, and upgraded from a single supplier to a first-tier supplier of cooperative R & D design and processing.

In 2015, we assisted in the development of ModelS and Model X transmission gearboxes, and achieved mass production within two months and achieved sales revenue.

In 2016, we successfully 深圳丝袜会所 assisted in the development of the Model 3 transmission case and realized small-scale supply.

In October 2014, Musk presented the “Top Ten Outstanding Partners in the World” award to Asahi at Tesla’s California headquarters.

Overseas comparison-NEMAK missed Tesla.

In the first half of 2016, Tesla and the global automotive lightweight leader Nimak talked about Model 3’s aluminum alloy component supply business. Due to concerns about Tesla’s mass production, Nimak became the minority to abandon Tesla to establish cooperationOne of the suppliers.

Comparison abroad-the giant road of CONSTELLIUM.

Ken Lian Aluminum is the world’s leading supplier of aluminum products. Its customers include Boeing, Air Pet, Ford, and Volkswagen.

The new generation of high-strength aluminum alloy HSA6TM series supplied to Tesla for the excellent 2017 AltairEnlighten award.

Xusheng is also well-known in research and development, and has a pool of experts and technical personnel. The product line is constantly enriched and there is huge room for growth.

From die-casting to forging, creating a new global lightweight force for automobiles.

Aluminum forgings have high specific strength, large specific stiffness, large specific elastic modulus, high fatigue strength, and a high proportion of applications in high-end models.

The company has sold aluminum alloy forging products to customers such as Tesla and Magna. The company intends to issue convertible bonds to raise funds not exceeding 4.

US $ 200 million for the new energy vehicle precision casting and forging project, becoming the world’s leading manufacturer of new energy vehicle parts and a first-class automotive lightweight parts system integration supplier.

Investment Advice.

We estimate that Tesla’s production in 2019-2020 will be: 400 / 500,000, and the company’s net profit attributable to its mother in 2018-2020 will be: 3.

4/4.

8/6.

USD 300 million, corresponding to PE of 40/28 / 22X.

Risk warning: Tesla’s production and sales are lower than expected; aluminum ingot prices are rising rapidly.