Parts and components: Gradually differentiated, focusing on the emerging incremental market and Tesla industrial chain
1.1 Traditional auto parts are under pressure, with the auto parts sector at its lowest valuation in a decade. Dragged down by the traditional auto market downturn, traditional auto parts companies shipping pressure. Investment logic is to grasp the downstream customers + new energy/smart driving layout two investment lines. The binding of components to high-quality customers and the deepening of cooperation can mitigate the decline in performance caused by the industry downturn. In addition, technology leaders are expected to enhance bargaining power and reap medium – and long-term growth in the “three transformations”.
1.2 Increase the concentration of new energy auto parts, and focus on thermal management and high-voltage wire harness industries. The new sub-industry supply chain of new energy vehicles as the focus of investment. After the production and sales of downstream oems are further improved, due to cost control, there is a risk that the gross profit margin of component manufacturers will decline, but some enterprises can offset it with the scale advantage achieved by mass production and sales.
1.3 Investment priorities in 2019: Tesla industrial chain. Tesla will quickly push forward the Chinese market and build part of the Model 3 production line in Shanghai Lingang in 2019. It plans to use the local purchasing and sales mode, which can revitalize a large number of domestic parts suppliers. Also will fill the domestic 250 ~ 400 thousand yuan ev price range product line. At the same time, there are also risks of lower gross margin and tesla’s development of a second supply. For potential suppliers, new entrants in Tesla’s supply chain can achieve pure incremental performance; In addition, access to the Tesla supply chain means possible recognition from international and domestic new energy oems, resulting in incremental new orders.
Post time: Dec-10-2020