Report guide
The increase in repurchase prices shows confidence that the new energy vehicle business is expected to grow faster than expected, and areas such as energy storage will open up new room for growth and maintain the "buy" rating.
Main points of investment
Raise the repurchase price to 14.0 yuan, demonstrating confidence in development
On August 30, the company's board of directors agreed to adjust the price ceiling of the repurchased shares from 8.50 yuan to 14.00 yuan per share. On February 17, the company's board of directors agreed to buy back the company's shares in the form of a centralized bidding transaction for the implementation of employee stock ownership plans or equity incentives, with a repurchase price of no more than 8.50 yuan and a buyback amount of no less than 25 million yuan and no more than 50 million yuan. Up to now, the company has bought back a total of 2.9984 million shares, with a cumulative amount of 25.0448 million yuan. the current closing price of the company is 12.11 yuan. the increase in the repurchase price reflects the company's confidence in the future development prospects. The early redemption right that does not exercise the "Gaolan convertible bond" has been met from August 9, 2021 to August 27, 2021, triggering the conditional redemption clause agreed in the Convertible Bond prospectus. On August 30, the company's board of directors agreed not to exercise the early redemption right of "Gaolan convertible bonds", which is good for market confidence.
The new energy field continues to be distributed, and its growth is expected to exceed expectations.
In the first half of the year, the company's revenue from new energy vehicle-related products increased by 223% compared with the same period last year, and profits increased by 140% compared with the same period last year. In particular, revenue from new energy vehicle electronic manufacturing products (mainly FPC) increased by 482%. The company's products cover Ningde era, AVIC Lithium, BYD, Guoxuan Hi-Tech and other mainstream customers, capacity expansion & product upgrading to achieve a jump in bicycle value, growth is expected to exceed expectations.
In the field of wind power generation and energy storage, based on the advantages of products and customers, it is expected to provide the driving force for follow-up development. The company has signed an order of 11 million yuan for energy storage and heat management, and has based on lithium battery single cabinet energy storage liquid cooling products, large energy storage power station liquid cooling system, prefabricated cabin type energy storage liquid cooling products, actively expand the market and open up new growth space. The company's earnings forecast and valuation estimate that the company's income will grow by 26% in 2021-23, by 28%, by 30%, and by 11% by 24%, by 24%, by 38%, by 30%, and by 24 times. The company's rapid growth in the field of new energy vehicles, energy storage and other areas with flexibility, maintain the "buy" rating.
Risk tips: the risk of a decline in gross profit margin of products; the risk that the permeability of new energy vehicles is not as high as expected.
