热管理行业老将，新能源业务发力

Zhejiang Yinlun Machinery Co., Ltd.（002126） Equity Research·Company Research·Auto Parts 1 / 9 东吴证券（香港） 请务必阅读正文之后的免责声明部分 [Table_Main] Veteran of the thermal management industry grows with development of renewables Buy (Initiation) Forecast & Valuation 2021A 2022E 2023E 2024E Revenue (RMB mn) 7,816 8,320 10,945 13,426 Growth (YoY %) 24% 6% 32% 23% Net profit (RMB mn) 220 364 548 793 Growth (YoY %) -31% 65% 50% 45% EPS (RMB) 0.28 0.46 0.69 1.00 P/E (X) 45.58 27.59 18.34 12.67 Key words: # new products, new technologies, new clients Investment Thesis ◼ Veteran in the thermal management industry for 40 years. Formerly known as “Tiantai Machinery Factory”, Zhejiang Yinlun (ZJYL) was established in 1958. ZJYL focuses on R&D, manufacture, and sales of heat exchangers among oil, water, gas and refrigerant, automotive air conditioning and other thermal management products, as well as exhaust aftertreatment related products. ZJYL covers a wide range of downstream clients: passenger vehicle clients (incl. renewables) include internationally renowned EV firms, CATL, NIO, XPEV and Li Auto; commercial vehicle non-road clients mainly include FAW Jiefang, Weichai, and Caterpillar; industrial and civil-used clients mainly include Gree and Midea. ◼ Electrification leads to significant increase of single car value, and domestic suppliers develop towards system assembly. Thermal management system is a collection of auto parts used to adjust the working temperature of parts and the environment temperature of the automobile cabin. Major auto parts include all kinds of pumps, valves, working fluid container, heat exchangers, compressors, pipelines, radiators, etc. Due to additional and upgrading components, the thermal management system of a single EV reaches Rmb7,000, three times as much as that of a traditional fossil fuel car. Thanks to the continuous growth of EV sales and high value of EV thermal management system, we expect the market size to reach Rmb100bn in 2025. Currently, Denso, Hanon, MAHLE and Valeo totally occupy more than 60% of the global market share, while domestic firms such as ZJYL, Sanhua, Tuopu and DunAn develop rapidly by catching industry opportunities to achieve business upgrade, business scope expansion, and the enhancement of systematically integrated products. ◼ Four core advantages of "technology, product, layout, client" help ZJYL to rapidly expand its EV thermal management business. In terms of R&D, ZJYL aims to build a global research system, focusing on EV thermal management. In terms of products, the company has a comprehensive product layout of "1+4+N" in the field of EV thermal management, and continuously makes efforts in the industrial and civil-used markets to achieve the advance layout of the third curve. In terms of global layout, adhering to the international development strategy, ZJYL continues to promote production and technical service platform in overseas markets, providing better localized services for