Yinlun shares (002126): Acquisition of Swedish thermal management company is beneficial to improve product technology and expand mid-to-high-end car enterprise customers

Yinlun shares (002126): Acquisition of Swedish thermal management company is beneficial to improve product technology and expand mid-to-high-end car enterprise customers
Event: The company acquires 100% equity of Setrab AB in Sweden. Core Opinion The company acquires a Swedish high-end sports car intercooler and oil cooler design and manufacturing company.The company plans to start with SEK 70 million (approximately RMB 5067).30,000 yuan) to acquire 100% equity 深圳桑拿网 of Setrab AB in Sweden.The target company is headquartered in Malmo, Sweden, and is mainly engaged in the design and manufacture of high-end sports car intercooler and oil cooler products. Its downstream customers are Ferrari, Lamborghini, Mercedes-Benz, Bentley and other super sports car companies.The target company’s operating income in 2017 and 2018 was approximately 65.09 million and 71.72 million yuan, with net profits of -1.82 million and 750,000 yuan. The acquisition promotes the company’s new energy vehicle thermal management technology and expands the mid-to-high-end automotive enterprise customers.The target company has an advantage in the design of small-scale high-end sports car cooling modules. This technology can be applied to domestic high-end electric sports cars in the future, which will help improve the company’s new energy vehicle thermal management technology and help the company to further develop joint ventures or wholly-owned new energy.Car enterprise customers, improving the profit contribution of new energy vehicle thermal management. The acquisition assisted the company in expanding its business in the European market.The company’s scale continues to expand in the overseas market for passenger cars. In February 2019, the company won an order for water and air cooler products from MANN + HUMMEL. Its Renault model was the first time the company has won a water and air cooler project for passenger cars in the European market.The target company can provide a technical service platform for the company to expand its business in the European passenger car market. At the same time, its factory in Poland can provide a product manufacturing platform for European business and facilitate the appointment of European talents.The acquisition is an important expansion of the company’s continued expansion of overseas customers. It is expected that more thermal management products will receive orders from the European market in the future, becoming an important profit growth point for the company. Financial forecast and investment advice forecast EPS0 for 2018-2020.45, 0.55, 0.69 yuan. The comparable company is a car conduit and parts related company. The 19-year average PE valuation of the comparable company is 22 times, and the target price is 12.1 yuan, maintain BUY rating. Risks suggest that after-treatment of exhaust gas, the amount of new energy vehicle thermal management system matching is lower than expected, and the amount of replacement matching is lower than expected.