The point of the investment:
Taken as a global leading auto parts company key step since selected as the second main business in auto parts, strategy implementation is steadfast, asimco's delivery is completed by march. The acquisition of Bosch motor and generator global business is another major breakthrough in the company's strategic transformation. Asimco merger makes the company a foothold in the domestic auto parts market, if Bosch motors and generators business success of mergers and acquisitions will make company shinning in the global automotive market. The EV/EBITDA is 6.7 times, and PB is 1.67 times, compared to other domestic companies' cross-border m&a valuations.
Auto market space is broad, integration of Bosch business potential after Bosch is a global leader in the motor vehicle business, in the future of energy conservation and emissions reduction technologies such as start-stop motor, 48 v system is also far leading domestic enterprises, on the European market share first. The Chinese market is also one of Bosch, the world's largest market, and most of the automobile enterprise has a very good cooperation, at the same time the company mergers and acquisitions of asimco electromechanical on motor business also has strong strength, the integrated space is huge in the future. For Bosch, spinning off less profitable motor manufacturing businesses and switching to new energy vehicles and smart driving is in the future. For zheng coal (601717), the global dynamic is still in the Chinese market, and the transformation of the company requires a high starting mark and a win-win for both. In the medium term, the domestic car market is still stable growth space, after completion of mergers and acquisitions, zheng coal will become the domestic motor vehicle market share first, will benefit from the continued growth of the domestic market. In the long term, advanced energy-saving technologies such as rev motor and 48V system will also accelerate the introduction of domestic and become a new bright spot. The net profit margin of Bosch's motor and starting motor business is expected to increase significantly after the consolidation of the merger.