The auto parts business has become an important revenue growth engine for Sanhua Intelligent Control.
On December 21st, Sanhua Zhikong (002050.SZ) opened higher by more than 3%, and the daily limit was 5 minutes after the opening in the afternoon, leading the new energy sector. .
On the evening of December 18th, Sanhua Intelligent Control issued an announcement, a wholly-owned subsidiary Sanhua Automobile Co., Ltd. has been identified as the exclusive supplier of multiple thermal management valve products on the E platform of BYD’s Fordi Technology New Energy Vehicle, with cumulative sales in the five-year life cycle Nearly 500 million yuan, and related models are expected to be mass-produced in 2021.
Sanhua Zhikong stated that the company’s products were once again recognized by BYD Auto and will not have an impact on this year’s performance, but it will help increase operating income and benefits in the future and further expand the company. The automotive market has a positive impact.
According to public information, the main business of Sanhua Intelligent Control is the production and research and development of refrigeration and air-conditioning control components and parts, including air-conditioning appliances and automobiles.
Since the acquisition of Sanhua Auto in 2017, the auto parts business has become an important revenue growth engine. Take 2019 as an example, Sanhua Intelligent Control’s revenue from refrigeration and air-conditioning electrical components business increased by 2.48% year-on-year, while its auto parts business revenue rose by 15.27% year-on-year.
In the field of new energy vehicles, Sanhua Intelligent Control has cooperated with many car companies around the world. According to reports, Sanhua Intelligent Control recently stated that the company’s main customers for its new energy vehicle business include Volkswagen, Mercedes-Benz, BMW, Volvo, Toyota, Geely, BYD, SAIC, and NIO. In addition, Sanhua Intelligent Control also exclusively supplies thermal management components for Tesla Model 3.
At present, Sanhua Intelligent Control will still benefit from the development of new energy vehicles in the future.
CICCIn the research report, the company stated that in the medium and long term, Sanhua Intelligent Control is expected to fully benefit from the high-quality products, technology and supporting services in the face of the quadruple thermal management market space for new energy vehicles in five years. Specifically, the global layout of Tesla, a major customer of Sanhua Intelligent Control, is rapidly taking shape, and Lingang Phase II, Germany, and Texas plants are expected to be put into operation in the next one to two years. At the same time, Sanhua Intelligent Control is also in-depth deployment of the carbon dioxide refrigerant circuit, and has obtained Volkswagen MEB orders.