Core ideas:
Lithium power equipment leading enterprises, strong demand and high income. Yinghe Technology, founded in 2006, has always been committed to the independent research and development of intelligent automation equipment for power batteries, and is also the first full-line solution provider in China. In 2019, Shanghai Electric became a strategic shareholder, adding to the background of state-owned assets. From 2016 to 2021, the company's operating income grew at an average annual compound growth rate of 43.65%. In 2021, revenue reached 5.202 billion yuan and net profit reached 311 million yuan, an increase of 118.12% and 63.30% respectively over the same period last year. The scale of revenue continued to grow rapidly, and profitability gradually rebounded.
The global penetration of new energy vehicles has accelerated, and lithium-ion equipment has grown into hundreds of billions of races. In 2021, the sales penetration of domestic and overseas new energy vehicles showed an accelerated trend, and the terminal demand was strong, which promoted the mid-stream battery manufacturers to accelerate production expansion, and new capacity planning continued to emerge. According to the current published production expansion plan, we estimate that from 2022 to 2025, the equipment procurement scale of the planned landing capacity will be about 1354 billion yuan, and the lithium power equipment track will continue to expand.
Three dimensions build the core competitiveness of the company. (1) in terms of products, the company has a rich and comprehensive product layout, including 13 of the 15 process links in the front, middle and back. And the company focuses on the manufacturing of lithium electrodes, leading the industry in the performance of the front and middle equipment, and is deeply recognized by downstream leading enterprises. The company also continues to strengthen the iterative extension of equipment, 21 years launched a small gap coating machine, high-speed large cylindrical winding machine and other innovative equipment. (2) on the orders, the company's newly signed lithium electricity orders increased rapidly, with a new order of 10.6 billion yuan in 21 years, an increase of 221.21% over the same period last year. At the same time, the company has sufficient production capacity, the existing five major production bases, 22-year output value is expected to exceed 13 billion yuan, helping to increase income. (3) in terms of profit, the company's profit margin has gradually bottomed out, and the profit recovery is more flexible.
Profit forecast and investment suggestion: it is estimated that the return net profit of the company in 22-24 years is 694 / 11.32 million yuan respectively. Considering the growth of the company and referring to the comparable company, the company is given a 22-year return net profit of 35x PE, corresponding to a reasonable value of 37.38yuan per share, with a "buy" rating.
Risk tips: downstream power battery industry competition intensifies and raw material price rise transmission risk, accounts receivable bad debt risk, company management risk.