Tesla and Volkswagen are the company's major customers
GDWC Precision Machinery Technology Group's main products are precision aluminum alloy die castings, which are mainly used in the automotive field, such as automotive engines, gearboxes, transmission systems, steering systems, electronic control systems, etc. Has already supplied aluminum alloy body structure parts for Tesla (TESLA), Shanghai Weilai, and Mercedes-Benz.
The cavity vacuum degree of the company's high vacuum die-casting process can reach up to 97%, reaching a world-class level. The company's current bulk supply of car door frames and other body structure parts for Tesla (TESLA) is die-casted with high-vacuum die-casting technology.
It first established a cooperative relationship with Tesla in 2014 and has now entered a solid cooperation stage. Mainly include products such as front and rear shock towers, air conditioning brackets, battery box brackets and body door frames.
The company has entered the supply chain of Volkswagen's MEB platform, which may drive the company's revenue to further increase. Several projects of subsidiaries TJXB and NTXB mainly supply products around the framework agreement signed with Volkswagen, and are currently in the stage of capacity ramping.
M&A the global aluminum alloy casting leader
The acquired holding subsidiary French BL Group is a global leader in the field of aluminum alloy castings for auto parts. In the European market, BL has a market share of more than 50% in the field of brake master cylinders and calipers; in the North American market, the market share of brake master cylinders is close to 50%, and in the Asian market, the market share of brake master cylinders is about 20%. Caliper products occupies a leading position with a share of
above 50. Based on the three major markets, BL Group's comprehensive market share is about 30% or more.
The GDWC product line does not involve turbocharger housings, intake manifolds and other intake system components, which happens to be the second largest business of BL Group.
The acquisition of BL Group is cost-effective. The price of 100% equity of BL Group is about 18.7 billion yuan, corresponding to about 88 times of its 2018 net profit PE, corresponding to about 19.3 times of 2019 PE, and corresponding to its 2019 PB of 143 times. In the future, it is expected to take advantage of its leading advantages in gravity die casting process and global production layout to advance to the global aluminum casting leader.