I. Overview of events
On August 24, the company released its semi-annual report of 2021, with revenue of 351 million yuan in the first half of 2021, an increase of 57.51% over the same period last year, and net profit of 61 million yuan, up 84.40% over the same period last year.
II. Analysis and judgment
The company has high performance growth and improved profitability
The company Q2 achieved revenue of 230 million, an increase of 91.7% over Q1, and achieved a performance of more than 60 million yuan, achieving high growth.
The company's profitability has improved significantly, with a gross profit margin of 50.8% in the first half of the year, of which the gross profit margin of lithium power equipment reached 52.0%, and the company's net profit rate reached 18% in the first half of the year, which is basically close to the net profit rate level of the leading lithium equipment industry. Product structure and product prices have improved due to the prosperity of the industry, and the scale effect has been gradually reflected.
In terms of operating efficiency, the average capacity utilization rate of the company reached more than 100% in the first half of the year. It is expected that the per capita output value of the company will reach more than 600000 yuan in 2021, and the per capita net profit is expected to exceed 100000 yuan, which is significantly better than in 2020. the utilization rate of capacity driven by the increase in prosperity has increased significantly. In the first half of the year, the age of accounts receivable and bills accounted for 41.0% within six months, an increase of more than 10 percentage points over the whole year of 2020. With the continuation of the prosperity of the industry, the company's profitability is expected to rise steadily.
High medium-and short-term growth of Lithium equipment driver Co., Ltd.
Since the beginning of 2021, Ningde era, Yiwei Lithium Energy and other major domestic battery enterprises have announced that the cumulative investment in new construction and expansion is more than 300 billion yuan, and the new planned production capacity exceeds 845GWh. According to the value measurement of 200 million / GWh, it will generate more than 169 billion yuan demand for lithium power equipment, and the growth of the lithium power equipment industry has strong certainty. The company currently signed purchase orders with Ningde Times this year totaling 424 million yuan, accounting for 75.5% of the company's revenue in 2020, of which the purchase order for chemical sub-capacity equipment reached 142 million yuan. We believe that we will actively develop the chemical capacity equipment in the later stage, and begin to supply the Ningde era in bulk, further improving the layout of the equipment in the latter section. With the increase in the demand for lithium power equipment, the company's new orders are expected to continue to grow.
Active layout of energy storage is expected to become a medium-and long-term growth point.
Since the second half of 2020, the implementation of policies in the field of energy storage such as wind storage and light storage has been gradually strengthened at home and abroad, which continues to stimulate the demand of the energy storage market. In the first half of the year, global and domestic energy storage battery shipments reached 18GWh and 11GWh respectively, an increase of 80% and 100% respectively over the same period last year. There are broad prospects for the energy storage market.
The company's business around the whole latter section has cut into the core detection and formation of capacity equipment, while actively carrying out energy storage business. The company has actively developed businesses such as PCS, charging piles and intelligent power station control systems, and cooperated with downstream leading customers to promote products such as energy storage power stations with testing capabilities. We believe that in the medium and long term, the company is expected to benefit from the high growth of energy storage demand, and energy storage testing has become a new growth point of the company's revenue. The main drivers of high revenue growth in the medium to long term include:
1) the continuous release of orders for chemical capacity separation equipment and pack line equipment brought about by the high demand for lithium batteries; 2) the continuous expansion of orders for energy storage equipment brought about by the high demand for energy storage; and 3) the development of new customers at the head, further increasing the market share.
III. Investment suggestions
It is estimated that from 2021 to 2023, the company will achieve an operating income of 890,650,679 million yuan and a net profit of 1.22 billion yuan and 234,328 million yuan respectively. The current stock price corresponding to PE is 74-39-28 times. Taking into account the high growth downstream, the overlay company's customer structure is high-quality, the current order is full, the overall valuation level of the industry is more than 50 times, and the company's PEG is less than 1, the valuation is reasonable, it can continue to be bullish and maintain the "recommended" rating.
Fourth, risk tips:
Sales of new energy vehicles fell short of expectations, the expansion of the energy storage industry fell short of expectations, and competition in the lithium-ion equipment industry intensified.