Wolong Electric Drive (600580): Strong entry into German ZF supply chain advancement strategy

On June 11th, the company issued an announcement: Wolong Electric Drive Group Co., Ltd. recently sent a fixed-point letter to ZF, and the company will provide ZF with new energy vehicle motors and their parts.

The model corresponding to this fixed-point letter has a sales forecast amount of 22 in its life cycle.

5.9 billion won the TR1 luxury car order, escorting the new energy vehicle motor business. The fixed-point motor supply is the core component of the new energy vehicle drive system. ZF is one of the world’s largest automotive suppliers.The country has 230 production bases and achieved operating income of 369 in 2018.

 2.9 billion, net profit 9.

6.5 billion euros, customers include Mercedes-Benz, BMW, Audi, etc.

ZF Company has extremely high requirements on the supplier’s technology, quality and guarantee system.

The expected implementation period of the contract is from 2020 to 2026. The signing of the contract is of great significance to the company’s global strategy for the new energy vehicle motor business, and further promotes the company’s relationship with the global reputation business.

The long-term demand for new energy vehicle motors continues to improve and is expected to create new growth poles. Although affected by external disturbances such as the national new energy vehicle’s supplementary decline, the company’s new energy vehicle drive motor sales have achieved approximately 20% growth in 2018.The output is close to 80,000 units.

In the first quarter of 2019, it also achieved operating income for two years.

87% growth, net profit is growing 210 per year.

85%.

The company has become an important supplier for some major new energy vehicle manufacturers in China. Passenger car customers include BAIC, Dongfeng Xiaokang, SAIC-GM-Wuling, Zotac, etc. Commercial vehicle products cover most of the domestic first-line customers such as Yutong and Foton.Zhongtong, Xiamen Golden Dragon, Nanjing Golden Dragon, etc.

With the completion of the company’s new energy vehicle motor production capacity construction project, the company’s production support capabilities have also been greatly improved.

At the same time, the company’s own multinational companies’ competitive advantages, technology and production capacity have been recognized by overseas high-end automobile manufacturers, providing core power components for a luxury pure electric SUV, and preparing for mass production.

Gradually advance the strategy and realize that the Asian and European production and distribution companies will promote the introduction of more international customer resources by acquiring GE’s small industrial motor business in 2018.

Because SIM is backed by General Electric, it has a history of more than 130 years 上海夜网论坛 in motor professional technology. It has first-class horizontal motors, vertical motors, special motors and other manufacturing technologies and advanced management levels, modern process equipment, and a sound North American sales network.As a result, the integration of GE’s small motor business will increase the company’s sales capabilities in North America.

And the Air Force has acquired ATB, SIR, OLI internationally, opening the European market portal.

In the end, the company successfully achieved production layout across Asia, Europe and the Americas.

Profit forecast we expect the company 2019?
2021 revenues will be 129.

07 billion, 149.

0.6 million yuan, 169.

7.6 billion, net profit attributable to mothers was 8.

0.6 billion, 10.

2.7 billion, 12.

51 ppm, currently the corresponding PE is 14 respectively.

39, 11.

30, 9.

27.

Maintain “Buy” rating.