The penetration rate of automobile lightweight and integrated die casting will increase rapidly. Lightweight and integrated die-casting of automobiles is an important way to reduce fuel consumption and improve battery life. It is expected that its penetration rate will continue to increase driven by the demand for electric vehicles. On the premise of ensuring the strength and safety performance of the vehicle, reducing the curb weight of the vehicle and improving the battery life of the vehicle have become an important technical direction for major vehicle and parts companies. On the basis of lightweight, Tesla uses integrated die-casting technology in the Model Y rear underbody, leading innovation in the manufacturing process and materials.
The main products and incremental products of automotive lightweight and integrated die casting. Automotive lightweight products are mainly: chassis and body lightweight. The chassis accounts for 27% of the weight of the whole vehicle and carries 70% of the body weight. The lightweight chassis helps to reduce the unsprung weight and improve the acceleration performance, handling performance and comfort of the car. It is expected that aluminum alloy components will be used in the chassis field. Accelerate penetration. Auto body is the field with the greatest potential for lightweighting. Hot-formed steel and lightweight technology are the mainstream approaches. Domestic parts companies already have mature hot-forming technology capabilities. The lightweight of the three-electric system of new energy vehicles is one of the keys to improving battery life. The main products in the three-electric system include battery box housing, motor, electronic control system housing and hybrid vehicle gearbox housing, etc. Cherfeng Automobile, Wencan Co., Ltd., Rongtai Co., Ltd. and other related products are deployed. With the development of new energy vehicles The penetration rate has increased, and the integrated die-casting of the three-electrical system is expected to open up new growth space for component manufacturers.
Industry market space and characteristics. According to the output of passenger cars in China, the amount of aluminum used in a single vehicle for passenger cars, the proportion of aluminum alloy die castings in the amount of aluminum used in automobiles, and the sales price of aluminum alloy parts for automobiles, it is expected that the market space of aluminum alloy die castings for passenger cars in China will reach 20% in 2025. It is about 163.714 billion yuan, and the compound growth rate of the market space from 2020 to 2025 is about 11.2%. The die casting industry is an asset-heavy industry, and its profitability has certain cyclical characteristics. In the early stage of project development, it is necessary to invest in land, equipment, workshops, etc., capital expenditures increase, and factors such as increased depreciation of fixed assets during the project construction process drag down profitability. Increased capacity utilization and improved profitability. The same is true for Aikedi and Chervon Auto over the years. After the completion of the expansion project, new customers and new orders were acquired, the capacity utilization rate was increased, and the gross profit margin was greatly improved.
Industry barriers and competitive landscape analysis. In the automotive precision die casting industry, there are barriers to entry such as qualification and customer certification barriers, technical barriers, and capital and scale barriers, and new entrants will face greater obstacles. Die casting parts suppliers of foreign or joint venture brands are large in scale and have advantages in capital, technology and production scale. Lightweight die-casting suppliers of domestic independent brands can be divided into two categories, one is subordinate to the downstream vehicle group, and the other is an independent lightweight die-casting supplier. The top die-casting companies with higher operating income are George Fischer and NEMAK. The revenue in 2019 exceeded 25 billion yuan, and the revenue of most domestic independent die-casting companies is less than 3 billion yuan. With the expansion of the production capacity of independent suppliers, through the cost-effective advantage, more orders from traditional car companies and new car manufacturers are obtained, which is expected to gradually narrow the gap with foreign die-casting companies and increase market share.
From the perspective of investment strategy, as the penetration rate of new energy vehicles continues to increase, the scale of lightweight and integrated die castings for automobiles will continue to expand, and companies that deploy lightweight and integrated die castings will benefit. The higher utilization rate will lead to a substantial improvement in profitability, and its earnings will also grow rapidly. Suggested attention: Wencan Co., Ltd., Chervon Automobile, Top Group, Aikedi, Bojun Technology, etc.
The main products and incremental products of automotive lightweight and integrated die casting. Automotive lightweight products are mainly: chassis and body lightweight. The chassis accounts for 27% of the weight of the whole vehicle and carries 70% of the body weight. The lightweight chassis helps to reduce the unsprung weight and improve the acceleration performance, handling performance and comfort of the car. It is expected that aluminum alloy components will be used in the chassis field. Accelerate penetration. Auto body is the field with the greatest potential for lightweighting. Hot-formed steel and lightweight technology are the mainstream approaches. Domestic parts companies already have mature hot-forming technology capabilities. The lightweight of the three-electric system of new energy vehicles is one of the keys to improving battery life. The main products in the three-electric system include battery box housing, motor, electronic control system housing and hybrid vehicle gearbox housing, etc. Cherfeng Automobile, Wencan Co., Ltd., Rongtai Co., Ltd. and other related products are deployed. With the development of new energy vehicles The penetration rate has increased, and the integrated die-casting of the three-electrical system is expected to open up new growth space for component manufacturers.
Industry market space and characteristics. According to the output of passenger cars in China, the amount of aluminum used in a single vehicle for passenger cars, the proportion of aluminum alloy die castings in the amount of aluminum used in automobiles, and the sales price of aluminum alloy parts for automobiles, it is expected that the market space of aluminum alloy die castings for passenger cars in China will reach 20% in 2025. It is about 163.714 billion yuan, and the compound growth rate of the market space from 2020 to 2025 is about 11.2%. The die casting industry is an asset-heavy industry, and its profitability has certain cyclical characteristics. In the early stage of project development, it is necessary to invest in land, equipment, workshops, etc., capital expenditures increase, and factors such as increased depreciation of fixed assets during the project construction process drag down profitability. Increased capacity utilization and improved profitability. The same is true for Aikedi and Chervon Auto over the years. After the completion of the expansion project, new customers and new orders were acquired, the capacity utilization rate was increased, and the gross profit margin was greatly improved.
Industry barriers and competitive landscape analysis. In the automotive precision die casting industry, there are barriers to entry such as qualification and customer certification barriers, technical barriers, and capital and scale barriers, and new entrants will face greater obstacles. Die casting parts suppliers of foreign or joint venture brands are large in scale and have advantages in capital, technology and production scale. Lightweight die-casting suppliers of domestic independent brands can be divided into two categories, one is subordinate to the downstream vehicle group, and the other is an independent lightweight die-casting supplier. The top die-casting companies with higher operating income are George Fischer and NEMAK. The revenue in 2019 exceeded 25 billion yuan, and the revenue of most domestic independent die-casting companies is less than 3 billion yuan. With the expansion of the production capacity of independent suppliers, through the cost-effective advantage, more orders from traditional car companies and new car manufacturers are obtained, which is expected to gradually narrow the gap with foreign die-casting companies and increase market share.
From the perspective of investment strategy, as the penetration rate of new energy vehicles continues to increase, the scale of lightweight and integrated die castings for automobiles will continue to expand, and companies that deploy lightweight and integrated die castings will benefit. The higher utilization rate will lead to a substantial improvement in profitability, and its earnings will also grow rapidly. Suggested attention: Wencan Co., Ltd., Chervon Automobile, Top Group, Aikedi, Bojun Technology, etc.