Integrated die-casting rises by 4.75%, with a market of 30 billion yuan. Who can benefit from it

Today, as the market falls into differentiation, funds are flowing back in a strong direction in the early stage. As of the close, the integrated die-casting sector surged 4.75%, with Quanfeng Automobile (603982. SH), Guangdong Hongtu (002101. SZ), and Rongtai Shares (605133. SH) hitting the limit up, Heli Technology (603917. SH) rising over 8%, and Lizhong Group (300428. SZ) and Yinbao Shanxin (002786. SZ) rising over 6%.

From a game theory perspective, with the internal differentiation and consolidation of the hot semiconductor sector last week, some funds chose to cash in profits first and then flow back to the previous strong direction. Therefore, the automotive industry chain, robotics, photovoltaic new technologies and other directions have undergone certain repairs. Overall, the current market trends and styles still lean towards growth oriented new technology directions.

The traditional manufacturing process of automobiles mainly includes four stages: stamping, welding, painting, and final assembly. Integrated die casting technology is an innovation of traditional automobile manufacturing process, which can make the body lightweight, save costs, improve efficiency, shorten the supply chain, shorten the manufacturing and transportation time of the whole vehicle, reduce labor and robots, and improve manufacturing scale.
From the perspective of industry development, integrated die-casting technology is the general trend.
Firstly, under the dual carbon background, lightweighting is a major trend in the development of the automotive industry. The application of integrated die-casting contributes to the realization of lightweight, and the Tesla Model Y rear floor assembly has reduced its weight by 30% after adopting integrated die-casting.
Secondly, compared with existing production processes, integrated die-casting improves production efficiency by simplifying the production process and increasing the pace.
Thirdly, the application of integrated die-casting technology can reduce production, land, labor, and other costs. Tesla's integrated die-casting rear floor has reduced manufacturing costs by 40% compared to the original.
At present, Tesla has adopted integrated die-casting technology as a standard process for layout, and multiple OEMs are following up on the layout of integrated die-casting technology. In the future, except for the covering parts, the stamping and welding processes of other body structural components may be replaced by die-casting technology. The ASP of integrated die-casting components is expected to continue to improve.
According to calculations by Tianfeng Securities, it is expected that the market space for integrated die-casting will experience rapid growth starting from 2023. The domestic integrated die-casting market is expected to reach a scale of over 30 billion yuan by 2025, with a CAGR of 238% from 2022 to 2025.
From the perspective of industry competition, integrated die-casting technology has four major barriers, making it difficult for competitors to easily enter and take a share of the market.
In terms of materials, integrated die-casting technology relies on heat-treated aluminum alloy materials.
In terms of equipment, integrated die-casting has high requirements for the locking force of die-casting machines, and die-casting machines have technical barriers for customized design and development, as well as relatively high capital expenditures.
In terms of process, as integrated die-casting technology is still in its infancy, die-casting manufacturers need to have rich experience and technical accumulation in production processes to ensure the yield rate of mass production.
In terms of molds, integrated die-casting parts have complex structures, high manufacturing costs, and long preparation cycles, which pose higher requirements for the production of die-casting molds.
Tianfeng Securities believes that integrated die-casting technology is an innovation in traditional automotive manufacturing processes, which can improve efficiency, reduce costs, and reduce weight compared to existing production technologies. Suggested attention:
(1) A die-casting manufacturer that lays out an integrated die-casting track
(2) Upstream suppliers are expected to benefit from the increased penetration rate of integrated die-casting