Deppon Securities issued a research report on August 10, giving Yongmaotai (605208.SH) an overweight rating. The main reasons for the rating include:
(1) The company has been focusing on the whole industry chain of casting aluminum alloy for nearly 20 years.When the company was established, it was mainly engaged in aluminum alloy business, and began to enter the downstream auto parts industry in 2003, gradually increasing investment in the automotive aluminum alloy parts business, forming a business pattern with "aluminum alloy + auto parts" as the main business and upstream and downstream integrated development. The existing aluminum alloy production capacity is 227,000 tons, and the expanded production capacity will be put into operation soon. In addition, the company actively develops heat-free materials for the promotion and application of integrated die casting, and cooperates with Shanghai Jiaotong University to develop cutting-edge technologies such as heat-free materials.The company has a first-mover advantage in the field of heat-free aluminum alloy materials.
Since 2012, the company has continued to promote cooperation with universities, downstream auto parts customers or independent research and development of high thermal conductivity aluminum alloy materials, heat-free high-strength and high-toughness aluminum alloy materials, heat-free treatment high-elongation aluminum alloy materials, high-strength integrated die-casting aluminum alloy materials, products have higher elongation, tensile strength, yield strength and other comprehensive properties are good, some materials are in the stage of sample delivery and trial production to auto parts customers.
(2) The trend of automobile lightweight has driven the use of aluminum alloy for automobiles.The "dual carbon" policy has driven the upgrading of energy conservation and emission reduction, the fuel consumption standards of fuel vehicles have been tightened, and automobile lightweight has become the main solution. Automotive lightweight is an important way to achieve automobile energy saving and emission reduction, aluminum alloy because of its low density and excellent performance characteristics, can greatly reduce the weight of the body while having outstanding safety performance, so that the global automotive aluminum rate continues to show an increasing trend. Under the background of lightweight automobiles, integrated die casting has become the mainstream, which is expected to replace the traditional stamping and welding process. The market for heat-free aluminum alloy materials spawned by the new process is broad.
The company has excellent performance of heat-free alloys and has the ability of the whole industry chain. In recent years, the company has increased investment in research and development, grasped the industrial foundation, and accelerated the establishment of an industry moat. The core barriers of integrated die casting are reflected in three aspects: equipment, materials, processes and molds. The company and Shanghai Jiaotong University Light Alloy Precision Forming National Engineering Research Center, Shenyang University of Aeronautics and Astronautics and other units have the first-mover advantage of the material end, focusing on the research and development and production of heat-free aluminum alloy materials for integrated ultra-large die castings, is expected to invest another 570 million to develop high-performance aluminum alloy material projects; the company has many years of experience in auto parts die casting technology and technology, focusing on customer needs, self-developed molds in the integrated casting business, mastering materials and processes, and laying out the entire industry chain.
(3) Traditional business aluminum alloy + integrated die-casting heat-free material two-wheel drive.The company's traditional business and downstream customers long-term and stable cooperation, and the company adopts the "sales to determine production" + "cost plus" sales model, which can effectively smooth customer orders and raw material cost fluctuations, is a more advanced casting industry aluminum alloy raw materials sales mode. In addition, the company's production capacity and recycled aluminum market share are at a high level. The company plans to expand its short-term production capacity by 360,000 tons and plan about 600,000 tons in five years to welcome the release of lightweight prosperity in the automotive industry, and the related business of new energy vehicles is also continuing to expand.
There are risks of repeated epidemics, large fluctuations in the prices of bulk metal commodities, slower than expected progress in expansion projects, and subjective forecasts of the integrated die casting market.