Domestic precision forming machine tools leading enterprises, the downstream field from household appliances to lithium battery expansion company has always focused on metal forming machine tools, the traditional business is heat exchanger equipment and precision presses, mainly used in home appliances, automobiles and other fields. The scale of the air conditioning and automobile market is stable, ensuring the demand for equipment, and the company's revenue has maintained positive growth since 2015. Since 2020, the company has focused on developing products in the field of new energy vehicles, including precision presses for the production of lithium battery structures and motor cores. The company has strong profitability, and its gross profit margin has remained at about 40% in the past three years, which is much higher than that of comparable companies in the same industry.
Provide square shell, cylindrical battery structure production equipment, production efficiency leading in the world, the company has put on the market batch of equipment including square battery shell equipment, cover plate equipment and explosion-proof piece equipment, cylindrical 4680 steel battery shell manufacturing equipment has completed the prototype production. At present, the production efficiency of square battery shell production equipment can reach 40 times per minute, which can be raised to 60 times per minute after debugging, which is the same as that of equipment imported from Japan. Square battery cover plate production equipment has significant advantages, the production efficiency can reach 110 times per minute, which is better than Asahi Seiki products, and the price is only half of Asahi Seiki.
Explosion-proof disc production equipment has also been put on the market. The cylindrical 4680 steel shell stretching equipment has completed the prototype production, which is different from the stand-alone stamping equipment used in the traditional cylindrical battery shell production. The equipment is a continuous production line composed of cup punching machine and cam machine, with a production efficiency of 100h / min. A maximum of 15 pieces are produced at a time, that is, a production efficiency of up to 1500 hours per minute is achieved, while the material utilization rate is improved by 50.6%.
Supporting lithium battery structure leader, benefit from the rapid expansion of downstream customers lithium structure equipment business customers for Zhenyu science and technology, Kodali and other structural parts head enterprises, benefit from its substantial expansion. Zhenyu Technology has set up five major production bases throughout the country. In order to meet the strong demand of downstream power battery factories, Zhenyu Technology has greatly expanded its production capacity, and its output value is expected to double continuously in the next two years. 2021H1 Zhenyu technology capital expenditure increased by 440% year-on-year, capital expenditure in the first half of the year alone has exceeded the level of the whole of last year, and the amount of equipment purchased has increased significantly. Kodali has set up 9 power battery precision structure production bases in China and 3 in Europe. Kodali's capacity is also expanding rapidly, and output is expected to double in the next two years. 2021H1 Kodali capital expenditure rose 203 per cent year-on-year, with capital expenditure exceeding the level for the whole of last year in the first half of the year alone. From the equipment point of view, with the rapid increase of power battery installation demand, the demand for power battery structure will also increase in equal proportion. it is estimated that the market space of cylindrical battery structure equipment will be about 8.23 billion yuan in the next three years. the market space of square battery structure equipment is about 12.56 billion yuan.
Cover for the first time to give a "buy" rating
It is estimated that the company's net profit from 2021 to 2023 is 0.89,1.31 and 182 million yuan respectively, an increase of 32.8%, 46.0% and 39.4% respectively over the same period last year, and the corresponding EPS is 0.29,0.42,0.59 yuan per share respectively. According to the latest closing price of 9.16 yuan (2021.10.18 closing price), the corresponding PE is 31.5,21.6 and 15.5 times respectively. Taking into account the high sales growth of downstream new energy vehicles, driving the demand for supporting lithium batteries and structural parts, the company's related production equipment is expected to enter a period of rapid growth. According to PEG=1, Ningbo Jingda is given a valuation of 35 times in 2022, with a target price of 15.00 yuan, giving a "buy" rating for the first time.
Risk tips: 1, new product research and development, promotion is lower than expected; 2, new energy vehicle sales decline; 3, downstream expansion intensity is lower than expected; 4, air conditioning industry demand decline.