DOCSLIB.ORG

CMBIS Research

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
CMBIS Research 16 Apr 2021 CMB International Securities | Equity Research | Sector Initiation China NEV Sector NEV New Forces: leading the wave of vehicle OUTPERFORM (Initiation) electrification China NEV Sector We see enormous growth potential in China’s NEV market in the next 5-10 years, highlighted by a 34% NEV sales CAGR during 2021-25E and a penetration rate Jack Bai nearly quadrupling from 5.4% in 2020E to 20% in 2025E. We think NIO, XPENG (852) 3900 0835 (“XPEV”) and Li Auto (“LI”) are leading the vehicle electrification wave for their [email protected] proven successful NEV models, first-mover advantages, and sound financing Robin Xiao capabilities. Looking ahead, we expect those three NEV New Forces to (852) 3900 0849 outperform peers in vehicle intelligence and new model development. We initiate [email protected] China NEV sector with OUTPERFORM rating. Our sector top pick is LI. Our pecking order in the sector is LI >XPEV>NIO. 2021E shipment projection NEV sales volume to surge at 34.2% CAGR during 2021-25E. We forecast NIO 87,175 NEV sales volume will achieve 1.92mn units in 2021E, up 40.1% YoY, XPEV 48,499 LI 57,092 supported by favorable policies such as the extension of subsidies and the Source: CMBIS estimates implementation of double credit policy. As the Chinese government is dedicated to develop the NEV market for leapfrogging, we project NEV sales 2021E Revenue – RMB mn volume in China to reach a CAGR of 34.2% during 2021E-25E, on the back NIO 33,069 of Chinese government’s ambitious 20% NEV penetration target by 2025E. XPEV 9,093 LI 16,564 New Forces are leading the race. NIO, XPEV and LI (The three “New Source: CMBIS estimates Forces”) have survived a competitive market and realized eye-catching NEV sales performance in 2020. We think the three companies had passed key 2021-2025E Sales projection milestones and are heading to sustainable development. We believe (k units) launching successful products at good timing, strong financing capability, and 350 differentiating positioning are critical factors that make them stand out. 300 250 Differentiated growth path. The New Forces adopt very different 200 development strategies. NIO is good at luxury branding, providing premium 150 services and operating excellent user communities; XPEV is taking the lead 100 in autonomous driving; LI runs great in precise product positioning and costs 50 control. Holding cash reserves of RMB 30-42bn by end-2020, we expect the - New Forces are in good positions to spend more efforts and resources to enhance their leading advantages, in our view. LI NIO XPEV LI is our top pick. We initiate China NEV sector with OUTPERFORM rating Source: CMBIS estimates given its enormous growth potential for the next 5-10 years. We apply different P/S multiples to different segment revenues in 2025E and discount them back 2021-2025E NEV market share to 2021E as fair value. We think NIO deserves some premium in multiples for 6.0% its leading product delivery and service monetization. Our TP for NIO/XPEV/LI 5.0% is US$ 46.32/43.12/37.73, respectively. Based on the current valuation and 4.0% upside potential, we take LI as our top pick. Our pecking order in the sector is 3.0% LI>XPEV>NIO. 2.0% 1.0% Sector risks: 1) semiconductor supply shortage; 2) vehicle defects; 3) 0.0% increasing competition. Peers’ valuation EV 2021E Sales LI NIO XPEV Major EV Model Share price Market Cap P/S multiple Company Ticker shipment revenue in China 2020 （US$) (US$, mn) (US$, mn) FY21E Source: CMBIS estimates Tesla TSLA US Model 3, Model Y 499,550 738.85 709,188 49,475 14.3 NIO NIO US ES6, EC6, ES8 43,728 35.66 58,430 7,173 8.1 Xpeng XPEV US G3, P7 27,041 31.40 24,803 2,925 8.5 Li Auto LI US ONE 32,624 19.68 17,803 3,354 5.3 Source: Company data, Bloomberg, CMBIS estimates PLEASE READ THE ANALYST CERTIFICATION AND IMPORTANT DISCLOSURES ON LAST PAGE 1 MORE REPORTS FROM BLOOMBERG: RESP CMBR <GO> OR http://www.cmbi.com.hk 16 Apr 2021 Contents China NEV market outlook ...................................................................... 3 Luxury cars are gaining market share ................................................... 4 NEV market has enormous growth potential ......................................... 6 NIO, XPEV and LI are leaders in auto electrification development .... 10 Differentiated development path .......................................................... 12 Competition with Tesla .......................................................................... 27 MCU supply shortage may be a short term risk .................................. 28 Sales and breakeven outlook ................................................................ 29 Valuation & Sector pick ......................................................................... 32 Risk factors ............................................................................................ 35 NIO (NIO US, BUY, TP US$: 46.32) ........................................................ 36 XPeng (XPEV US, BUY, TP US$: 43.12) ................................................ 51 Li Auto (LI US, BUY, TP: US$ 37.73) ..................................................... 64 PLEASE READ THE ANALYST CERTIFICATION AND IMPORTANT DISCLOSURES ON LAST PAGE 2 16 Apr 2021 China NEV market outlook We see enormous growth potential of the NEV market in China. In 2021-25E, we project NEV sales volume to increase from 1.37mn units in 2020 to 6.21mn units in 2025E at a CAGR of 34.2%. We also expect NEV sales penetration rate to expand from 5.4% in 2020 to 20% in 2025E. We think there are solid fundamentals to support NEV’s extraordinary growth path in China. At the micro level, we observe significantly increasing consumer recognition of NEV, with evidences of NEV consumption upgrade towards mainstream B/C class vehicle models. Evolving NEV technologies, such as improving mile range as well as increasing smartness has boosted consumer demand for better user experiences. At the macro level, we also see strong government policy supports to sustain NEV market’s long-term growth. Chinese government had laid out NEV development plans for 2021-2035, and non-monetary policy tools will replace subsidy-driven stimulus from 2023E. With respect to China’s passenger vehicle sales market overall, we expect sales to resume growth track after consecutive declines in 2018-20 due to various reasons. We expect passenger vehicles to achieve a high growth rate of 12-14% in 2021E on back of stimulus policies, such as “boosting rural auto sales (汽车下乡)”. We also believe luxury cars will gain larger market shares as Chinese consumers have increasing consumption power. We think a new round of automobile demand growth is coming, and NEV is in a perfect position to catch the surging wave. Passenger vehicle (PV) sales to resume growth track China's PV sales declined 4%/9% in 2018/19 respectively. In 2020, due to impacts of COVID-19, PV sales in China read a third year consecutive decline by another 6% to 20.18mn units. Sales decline had squeezed auto manufacturers’ margins, and caused continuous market consolidation. To boost PV sales, China State Council re-initiated “boosting rural auto sales” in Dec 2020. We think the stimulus policy will encourage demand from first time buyers in rural areas, which will likely support PV models targeting mass market. We expect leading auto manufacturers’ operating leverage will improve steadily as sales volume increases. Thanks to stable sales and policy support, we expect China PV sales to resume growth track with a double digit growth rate of 12-14% in 2021E. We believe 2021 is a milestone year for a new PV growth cycle. Figure 1: China’s PV sales forecast in 2021E base Figure 2: China’s PV sales forecast in 2021E bull case case Source: CAAM, CMBI estimates Source: CAAM, CMBI estimates PLEASE READ THE ANALYST CERTIFICATION AND IMPORTANT DISCLOSURES ON LAST PAGE 3 16 Apr 2021 Considerable room for long-term auto sales growth We are optimistic on medium-to-long term auto sales outlook in China. The number of cars per 1,000 people in China was estimated to be about 190 by 2020E, which is still significantly behind the level of 400-600 cars in Japan and South Korea according to the World Bank’s statistics. We expect China resident’s disposable income will expand with continuous economic growth, and that will drive up automobile consumption for personal transportation demand in medium-long term. Luxury cars are gaining market share In contrast to overall PV sales trend, the sales volume of luxury vehicle (priced above RMB 300k) in China was 3.24mn units in 2020, a growth of 6.5% YoY, according to CADA. The broad sense of luxury vehicle (including Tesla, NIO and LI) recorded total sales volume of 3.46mn units, up 11.4% YoY. The market shares of luxury brands continued to rise from 10.7% in 2019 to 13.1% in 2020. We expect the share gain of luxury brands will continue as Chinese consumers have increasing purchasing power with steady economy growth at mid-to-high speed. Within the luxury segment, BBA (BMW, Mercedes Benz, and Audi) has occupied about 70% market shares. Tier 1 and tier 2 cities accounted for the majority of luxury car sales with YoY growth pace of 12%/9% respectively, while tier 3 and tier 4 cities also read considerable sales growth at 9%/8% respectively in 2020. Figure 3: Segments mix in China Figure 4: Premium segment share of total market Source: CADA, CMBIS Source: Global Insight 01/2019, CMBIS PLEASE READ THE ANALYST CERTIFICATION AND IMPORTANT DISCLOSURES ON LAST PAGE 4 16 Apr 2021 Figure 5: Sales volume of major luxury brands in Figure 6: Sales volume of luxury brands by city tier China in 2020 level in 2020 Source: CADA, CMBIS Source: CADA, CMBIS PLEASE READ THE ANALYST CERTIFICATION AND IMPORTANT DISCLOSURES ON LAST PAGE 5 16 Apr 2021 NEV market has enormous growth potential We see enormous growth potential of the NEV market in China under the background of energy structure transformation.
Load more

Recommended publications
  • NEV Users to Get Better Customer Protection
    16 | Monday, August 2, 2021 HONG KONG EDITION | CHINA DAILY 10 | Wednesday, March 6, 2019 CHINA DAILY Firms to help European EV ambitions By LI FUSHENG end of the decade. It said the [email protected] investment will make its battery plant the first gigafactory in Chinese electric car battery China’s dominance France. makers are expanding their pres- of the industry is to “The battery plant is the begin- ence in Europe to support the ning of our cooperation. We will ambitions of native governments be expected given its have comprehensive strategic and carmakers in electrification. huge investments cooperation with Renault, includ- Last year, 1.39 million electric ing green factories, zero-carbon cars and plug-in hybrids were sold and the policies the technology, and the deployment of in the European Union; more than country has smart-charging infrastructure in those sold in China, the world’s Europe. This is just a starting largest single market for such implemented over point,” said Envision Group CEO vehicles. the past decade.” Zhang Lei. This momentum is expected to Earlier this month, Envision continue in the coming years as James Frith, BloombergNEF’s said it would make another invest- car giants, including Volkswagen head of energy storage ment of 423 million pounds ($576 and Daimler, have revealed a mas- million) to build a gigafactory in sive shift toward electrification the United Kingdom. and EU governments are imposing cell factory layout, machinery and This would be part of a flagship stricter rules on gasoline vehicles. production processes,” said the EV hub project with Japanese car- However, as Europe’s battery group that owns brands including maker Nissan.
    [Show full text]
  • Le 17H00 26/11/2020
    LE 17H00 26/11/2020 ATHLON FRANCE TRAVAILLE AU DÉPLOIEMENT D’UNE OFFRE DE MOBILITÉ Opérationnelle aux Pays-Bas, l’offre Athlon Flex, anciennement ChangeMyCar, sera testée en France en 2021 auprès d’un client pilote. « Athlon International avait conclu après une longue étude que les conducteurs avaient besoin de beaucoup plus de flexibilité, de pouvoir changer de voiture beaucoup plus souvent, alors que les contrats de LLD courent généralement sur trois ou quatre ans et bloquent tout changement sur cette période. Or il se trouve que la vie des conducteurs peut changer, ils peuvent par exemple avoir des enfants et avoir donc avoir besoin d’un véhicule plus grand », explique Gérard de Chalonge, directeur commercial et marketing d’Athlon France. L’idée centrale d’Athlon Flex est que les employés choisissent et modifient les solutions qui correspondent à leurs besoins de mobilité changeants. Un jeune diplômé qui commence tout juste son premier emploi peut combiner une voiture, un vélo et les transports en commun. Les employés peuvent conduire à une voiture électrique au quotidien tout en conservant la flexibilité nécessaire pour revenir à une voiture thermique pour les vacances. Les jeunes familles peuvent quant à elle passer à une voiture familiale pour s’adapter à leurs enfants. Il s’agit en quelque sorte d’un budget mobilité dernière génération qui repose sur une application mobile. La prochaine étape sera un déploiement sur le marché français. Gérard de Chalonge précise que l’offre sera testée en 2021 auprès d’un client pilote, l’objectif étant « d’adapter le dispositif à notre culture, au contexte et aux besoins locaux car la maturité des Pays-Bas sur les questions de mobilité est plus avancée que la nôtre ».
    [Show full text]
  • Development & Policy Forecast for Global and Chinese NEV Markets
    Development & Policy Forecast for Global and Chinese NEV Markets in 2021 Invited by China EV 100, officials and experts from domestic and foreign government agencies, industry associations, research institutions and businesses attended the 7th China EV 100 Forum in January 15-17, 2021. The summary below captures the observations and insight of the speakers at the forum on the industry trend and policy forecast in the world and China in 2021. Ⅰ. 2021 Global & China Auto Market Trend 1. In 2021, the global auto market may resume growth, and the NEV boom is set to continue. 2020 saw a prevalent downturn of the auto sector in major countries due to the onslaught of COVID-19, yet the sales of NEVs witnessed a spike despite the odds, with much greater penetration in various countries. The monthly penetration of electric vehicles in Germany jumped from 7% to 20% in half a year and is expected to hit 12% in 2020, up 220% year on year; Norway reported an 80% market share of EVs in November, which is projected to exceed 70% for the whole year, topping the global ranking. Multiple consultancy firms foresee a comeback of global sales growth and a continuance of NEV boom in 2021 as coronavirus eases. 2. China's auto market as a whole is expected to remain stable in 2021, 1 with a strong boost in NEV sales. In 2020, China spearheaded global NEV market growth with record sales of 1.367 million units. The Development Research Center of the State Council expects overall auto sales to grow slightly in 2021, which ranges 0-2%.
    [Show full text]
  • Pwc China Automobile Industry M&A Review and Outlook
    Epidemic Prevention and Response to COVID-19 in the Automobile Industry Series Issue 2 — PwC China Automobile industry M&A Review and Outlook The epidemic has prompted many practitioners and managers in the industry to re-examine and plan for the medium-and long-term development of auto industry, accelerating industry transformation and upgrade. PwC auto team emphasizes on the following aspect of tax & legal, M&A and telematics system to analyze the related solutions. In this article, we mainly focus on the M&A aspect, hoping to give some inspirational idea to the practitioners in the industry. China’s automobile industry has developed rapidly in the opportunities. Moreover, an increasing number of companies past decade. Benefiting from “bringing in” and “going out” with advanced technology and capital will continue entering policy, both domestic and foreign OEMs have successfully into the market which fuels more M&A activities in the realized high growth through a series of mergers and automobile industry. acquisitions (M&A). Since 2018, the development of China In this article, we will analyze the automobile industry from automobile market has been slowing down, and the “CASE” four aspects: review of China’s auto industry M&A deals, trend has been having impact on OEMs. As new businesses main deal drivers and changes of auto industry, the future models are emerging, it has also led to blurring of M&A trend, and key initiatives in response to market boundaries between industries. Auto companies have been changes. actively using M&A deals to transform the automobile industry. At the beginning of 2020, the coronavirus outbreak severely impacted the supply chain of automobile industry, thus resulted in demands for business restructuring and transformation.
    [Show full text]
  • 2333 a Share Stock Code: 601633
    (a joint stock company incorporated in the People's Republic of China with limited liability) H Share Stock Code: 2333 A Share Stock Code: 601633 * For identification purpose only IMPORTANT NOTICE I. The Board, the Supervisory Committee and the directors, supervisors and senior management of the Company warrant that the contents of this annual report are true, accurate and complete and do not contain any false representations, misleading statements or material omissions, and jointly and severally take legal liability for its contents. II. All the directors of the Company attended the Board meeting. III. Deloitte Touche Tohmatsu Certified Public Accountants LLP has issued the standard audited report for the Company without qualified opinion. The financial information in the annual report was prepared in accordance with China Accounting Standards for Business Enterprises and the relevant laws and regulations. IV. Wei Jian Jun, person-in-charge of the Company, Li Hong Shuan, person-in-charge of the accounting affairs and Lu Cai Juan, person-in-charge of the accounting department (head of the accounting department), declare that they warrant the truthfulness, accuracy and completeness of the financial report in this annual report. V. Proposal of profit distribution or capitalization of capital reserve during the Reporting Period reviewed by the Board As audited by Deloitte Touche Tohmatsu Certified Public Accountants LLP, the net profit of the Group and net profit attributable to shareholders of the Company in 2020 amounted to RMB5,362,490,194.32 and RMB5,362,490,194.32 respectively. The Company has implemented the profit plan for the first three quarters of 2020, pursuant to which it distributed a cash dividend of RMB0.28 (tax inclusive) per share to all shareholders, with a total cash dividend of RMB2,569,266,924.00 (tax inclusive) distributed.
    [Show full text]
  • Chinese Carmakers Slash Sales Targets
    16 | MOTORING Monday, March 23, 2020 HONG KONG EDITION | CHINA DAILY Nio bullish about its Short Torque BYD transforms lines business performance to support masks Many companies in China have transformed their businesses to despite coronavirus cater to the rising demand for masks amid the coronavirus epi- demic, and leading new energy By LI FUSHENG vehicle manufacturer BYD has [email protected] joined them. On Feb 17, BYD pro- duced its first batch of masks. Chinese electric car startup We are pleased to Each of its production lines can Nio is confident about its see encouraging make 50,000 masks a day, and in prospects this year despite the total five million masks and coronavirus outbreak, expecting results to date, and 300,000 bottles of disinfectant its gross profit margin to become expect around 35 can be made on a daily basis, positive in the second quarter. making the company one of the “Based on the current trend, percent expense biggest mask manufacturers in we would hope the daily new reduction compared the world. The company plans to order rate to return to the level of expand its production lines to a last December in April,” said to the prior quarter daily capacity of up to 10 million William Li, founder and chair- even under the masks. The masks will also be man of Nio, on an earnings call pressure of the provided to other countries hit last week. hard by the virus, after meeting He expected production, outbreak.” GAC showcases its Aion LX model in Shenzhen, Guangdong province last July.
    [Show full text]
  • Stanphyl Capital Management LLC Stanphyl Capital GP, LLC Stanphyl Capital Partners LP
    Stanphyl Capital Management LLC Stanphyl Capital GP, LLC Stanphyl Capital Partners LP Friends and Fellow Investors: For June 2018 the fund was down approximately 13.8% (no that is not a misprint- please see the paragraph below) net of all fees and expenses. By way of comparison, the S&P 500 was up approximately 0.6% while the Russell 2000 was up approximately 0.7%. Year-to-date the fund is down approximately 16.2% while the S&P 500 is up approximately 2.6% and the Russell 2000 is up approximately 7.7%. Since inception on June 1, 2011 the fund is up approximately 67.4% net while the S&P 500 is up approximately 134.7% and the Russell 2000 is up approximately 113.7%. Since inception the fund has compounded at approximately 7.6% net annually vs 12.8% for the S&P 500 and 11.3% for the Russell 2000. (The S&P and Russell performances are based on their “Total Returns” indices which include reinvested dividends.) As always, investors will receive the fund’s exact performance figures from its outside administrator within a week or two; meanwhile I continue to waive the annual management fee until the entire fund regains its high- water mark. The fund was absolutely massacred this month, and it was primarily due to our large short position in Tesla, to which I added on each new piece of negative news, much of which was indicative of the kind of outright fraud (see below) that would immediately send a “normal stock” into a death spiral, and yet for most of the month Tesla’s stock kept levitating.
    [Show full text]
  • MX-Sensor V5.5X 国内版功能列表（仅供参考）
    MX-Sensor_V5.5X 国内版功能列表（仅供参考） 标注说明： ● 支持该功能。 ○ 不支持该功能。 颜色标注说明：红色：新增功能支持；黄色：功能有更新。 特别申明： 1）如果学习类型仅仅支持OBD学习，且OBD功能尚未发布的情况下，您仅仅能使用克隆的方式学习道通传感器； 2）所有自学习的操作步骤，开车时速建议控制在25km/h到100km/h。 学习类型（A=自学习， 道通传感器 道通设备支 车系 车型 年款范围 特征 模式号 OBD功能 编程支持情况 胎压类型选择 S=静态学习，O=OBD学 频率 传感器制造商 编程支持情 持情况 习,C=只克隆） 况 Abarth 124 Spider 2016/10-2019/06 ○ ● ○ A 433Mhz Continental ● ● Abarth 124 Spider 2016/01-2019/06 Indirect ○ ○ ○ A N/A N/A Indirect ● Abarth 4A Grande Punto 2007/01-2010/12 199 ○ ● ○ C 433Mhz TRW ● ● Abarth 4B Punto EVO 2010/01-2013/12 199 ○ ● ○ A 433Mhz TRW ● ● Abarth 500 2008/03-2017/12 Indirect ○ ○ ○ A N/A N/A Indirect ● Abarth 500 2008/03-2019/06 ● ● ● O/A 433Mhz Schrader ● ● Abarth 500C 2010/01-2019/06 Indirect ○ ○ ○ A N/A N/A Indirect ● Abarth 500C 2011/08-2019/06 ○ ● ○ A 433Mhz Schrader ● ● Abarth 595 2014/01-2019/06 Indirect ○ ○ ○ A N/A N/A Indirect ● Abarth 695 Biposto 2015/01-2019/06 Indirect ○ ○ ○ A N/A N/A Indirect ● Abarth 81 Nuova Punto 2012/01-2013/12 199 ○ ● ○ C 433Mhz TRW ● ● Abarth Punto Evo 2013/01-2014/12 Indirect ○ ○ ○ A N/A N/A Indirect ● Acura CSX 2008/01-2012/12 315MHz ● ● ○ O 315Mhz TRW ● ● Acura ILX 2016/01-2019/06 315MHz ● ● ○ O 315Mhz Continental ● ● Acura ILX 2013/01-2015/12 315MHz ● ● ○ O 315Mhz Continental ● ● Acura MDX 2018/01-2019/06 433Mhz ● ● ○ O 433Mhz Continental ● ● Acura MDX 2016/01-2019/06 315MHz ● ● ○ O 315Mhz Continental ● ● Acura MDX 2013/06-2015/12 315MHz ● ● ○ O 315Mhz Continental ● ● Acura MDX 2007/01-2013/05 315MHz ● ● ○ O/A 315Mhz Pacific ● ● Acura MDX 2004/01-2006/12 315MHz ● ● ○ O 315Mhz TRW ● ● Acura NSX
    [Show full text]
  • 2020 Annual Results Announcement
    Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. GUANGZHOU AUTOMOBILE GROUP CO., LTD. 廣 州 汽 車 集 團 股 份 有 限 公 司 (a joint stock company incorporated in the People’s Republic of China with limited liability) (Stock Code: 2238) 2020 ANNUAL RESULTS ANNOUNCEMENT The Board is pleased to announce the audited consolidated results of the Group for the year ended 31 December 2020 together with the comparative figures of the corresponding period ended 31 December 2019. The result has been reviewed by the Audit Committee and the Board of the Company. - 1 - CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Year ended 31 December Note 2020 2019 RMB’000 RMB’000 Revenue 3 63,156,985 59,704,322 Cost of sales (60,860,992) (57,181,363) Gross profit 2,295,993 2,522,959 Selling and distribution costs (3,641,480) (4,553,402) Administrative expenses (3,850,327) (3,589,516) Net impairment losses on financial assets (55,110) (53,831) Interest income 304,233 290,694 Other gains – net 4 1,379,690 2,620,340 Operating loss (3,567,001) (2,762,756) Interest income 127,551 171,565 Finance costs 5 (439,567) (516,481) Share of profit of joint ventures and associates 6 9,570,978 9,399,343 Profit before income tax 5,691,961 6,291,671 Income tax credit 7 355,990
    [Show full text]
  • The 4Th Shanghai International New Energy Vehicle Thermal Management System Technology Conference and Exhibition
    Global product and technology innovation exchange platform for new energy vehicle thermal management The 4th Shanghai International New Energy Vehicle Thermal Management System Technology Conference and Exhibition Exhibition time: June 10-12, 2020 Forum time: June 10-11, 2020 Conference address: Shanghai New International Expo Center (Pudong New Area) Conference website: www.evtms.cn Exhibition background: With the continuous growth of China's new energy vehicle market, the market space for thermal management systems has expanded dramatically. According to the vehicle production and sales data, thermal management system parts supply price and industry research, it is estimated that the domestic thermal management system market will reach more than 74 billion yuan in 2017. Driven by energy issues, new energy vehicle policies, automotive electrification, and intelligent development, the domestic thermal management system market will exceed 100 billion yuan by 2023. Under the trend of high growth of new energy vehicles, more and more enterprises are rushing to find opportunities in the field of new energy vehicle thermal management systems to seize the commanding heights of the new energy vehicle thermal management system market in advance. EVTMS is a comprehensive communication platform for products and technologies in the global new energy vehicle thermal management industry. The exhibition and forum will be held in Shanghai New International Expo Center from June 10th to 12th, 2020, and will hold the 14th Shanghai International Exhibition of EVTECH EXPO. The New Energy Automotive Technology Expo will have a total exhibition area of 36,000 square meters. It will bring together 200 exhibitors from around the world to showcase advanced new energy vehicle thermal management products.
    [Show full text]
  • China Autos Driving the EV Revolution
    Building on principles One-Asia Research | August 21, 2020 China Autos Driving the EV revolution Hyunwoo Jin [email protected] This publication was prepared by Mirae Asset Daewoo Co., Ltd. and/or its non-U.S. affiliates (“Mirae Asset Daewoo”). Information and opinions contained herein have been compiled in good faith from sources deemed to be reliable. However, the information has not been independently verified. Mirae Asset Daewoo makes no guarantee, representation, or warranty, express or implied, as to the fairness, accuracy, or completeness of the information and opinions contained in this document. Mirae Asset Daewoo accepts no responsibility or liability whatsoever for any loss arising from the use of this document or its contents or otherwise arising in connection therewith. Information and opin- ions contained herein are subject to change without notice. This document is for informational purposes only. It is not and should not be construed as an offer or solicitation of an offer to purchase or sell any securities or other financial instruments. This document may not be reproduced, further distributed, or published in whole or in part for any purpose. Please see important disclosures & disclaimers in Appendix 1 at the end of this report. August 21, 2020 China Autos CONTENTS Executive summary 3 I. Investment points 5 1. Geely: Strong in-house brands and rising competitiveness in EVs 5 2. BYD and NIO: EV focus 14 3. GAC: Strategic market positioning (mass EVs + premium imported cars) 26 Other industry issues 30 Global company analysis 31 Geely Automobile (175 HK/Buy) 32 BYD (1211 HK/Buy) 51 NIO (NIO US/Buy) 64 Guangzhou Automobile Group (2238 HK/Trading Buy) 76 Mirae Asset Daewoo Research 2 August 21, 2020 China Autos Executive summary The next decade will bring radical changes to the global automotive market.
    [Show full text]
  • NIO INC. (Ticker: NIO) LBIRLBIR Recommendation Recommendation
    STOCK: NIO | 4/21/21 FIRST FOCUS NIO INC. (Ticker: NIO) LBIRLBIR Recommendation Recommendation Stock Price: $36.93 (4/21/21) Company Size: $55.9B Author: Janice Quek Industry: Alternative Energy Car Company Rank: 931 Sector: Consumer Cyclicals Manufacturers Nio is a leading Chinese smart electric vehicle manufacturer. IN THIS FIRST FOCUS WE’LL COVER: u Summary of the Business Nio designs and produces smart electric vehicles and offers a range of complementary services to Grab-and-Goä drive electric vehicle adoption and other revenue streams. THESIS u Recent Developments The pandemic impacted Nio’s sales adversely in An investment in Nio is a play on Q1FY20, but the company recovered well, returning premium electric vehicle demand in to pre-Covid production levels by the next quarter. China. The company is a leading It reported strong FY20 performance. manufacturer of premium smart u Competitive Environment electric vehicles in the country. Nio Nio is one of the leading electric vehicle brands in has a good competitive position and China. It has a premium, high performing vehicle can sustain or grow market share fleet, attractive battery swap design, strong support through innovation and aggressive infrastructure and solid branding, which are market penetration into China’s competitive strengths. smaller cities. u Conclusions/Recommendations We assess that Nio will grow rapidly in the next few years and has significant upside potential. We assign a “GREEN LIGHT” rating to Nio. SEEKING STOCKS THAT CAN DOUBLE IN 2-3 YEARS 1 LEFTBRAINIR.COM . 630-517-9300 0.94 STOCK: NIO | 4/21/21 FIRST FOCUS Data as of 4/21/21 unless specified Revenue Fwd $5,298M Enterprise Value: $55.9B Market Cap: $60.5B (TTM): ($2,355M) Fwd (TTM) 19.14x YTD Return: -24.23% RSI: 38.3 Price/Sales: (8.97x) Gross Margin Revenue Growth 11.7% 110.8% ROIC (TTM): -26.4% (TTM): (FWD, YoY): 200-day Moving 52-Week High: $66.99 52-Week Low $2.91 $35.22 Avg.
    [Show full text]