Event: the company released the 2021 Annual report and the 2022 first Quarterly report.
Lithium detection equipment as the core, the scale of shipments continued to grow steadily. Since its establishment, the company has gradually realized import substitution in the field of lithium testing equipment. With the expansion of the downstream lithium industry, the shipping scale of the company's testing equipment business has grown rapidly. In 2021, the company's testing system sold 21100 channels, an increase of 148.08% over the same period last year, and the capacity utilization rate reached 110.07%. In 2021, the company achieved operating income of 811 million yuan, an increase of 41.02% over the same period last year, and a net profit of 76 million yuan, an increase of 33.42% over the same period last year. In addition, the company continued to increase R & D innovation, with annual R & D investment reaching 138 million yuan, an increase of 68.86% over the same period last year and accounting for 17% of revenue.
The superposition of multiple adverse effects causes 2022Q1 to fall short of expectations, and the delivery of Q2 formation and capacitive equipment is expected to start, which is expected to lead to a significant increase in revenue scale. Apart from the impact of rising prices of raw materials such as metals and chips, the domestic outbreak of the 2022Q1 also had a temporary impact on the company's supply chain and delivery. Some orders had not yet recognized revenue in the first quarter, resulting in revenue failure to achieve the expected growth. The company's production line, process development investment, and talent reserve for new businesses such as component capacity were all reflected in the expenses of the first quarter, resulting in profitability significantly lower than expected. Looking forward to the second quarter, the company will further plan to enhance the production capacity of the production line of sub-capacity equipment, and it is expected that orders will gradually begin to be delivered to Ningde, and the superimposed company will strengthen the management and control of the supply chain. it is expected that the production and delivery of testing equipment and other main industries will gradually return to normalization, and the company's performance is expected to improve significantly compared with the previous month.
Energy storage accompanied by policy and market resonance, the industry has entered a period of rapid development, the company and Ningde era joint venture to establish time Nebula, deep ploughing energy storage, is around the Ningde battery industry layout of the user side and the grid side of the high growth of scarce and high quality targets. Since the beginning of 2021, the state has issued a number of energy storage support policies to further clarify the commercial status of energy storage, improve the economy of energy storage, and promote the development of new types of energy storage such as electrochemical energy storage to commercialization and large-scale development. According to GGII data, domestic energy storage battery shipments 48GWh (+ 260%) in 2021, of which electric energy storage battery shipments 29GWh (+ 439%). Global energy storage battery shipments are expected to reach 416GWh by 2025, with an annual compound growth rate of about 72.8%. The energy storage industry will enter a period of rapid development. The company continues to work deeply in the field of energy storage, and has successively launched products such as nebula energy storage converter (PCS) and nebula charging pile, which are mainly used in power generation side energy storage, grid side energy storage, integrated light storage and charging power station, household energy storage and other fields. In 2019, the company set up the Times Nebula in the Ningde era, entered the field of energy storage, and actively distributed energy storage on the grid side and user side. Under the resonance of policy and market, the company's energy storage business is expected to enter a high-speed development channel.
Profit forecast: the company is expected to achieve a net profit of 1.53 million yuan from 2022 to 2024, corresponding to a 9.5 times PE of 13.8 pounds, maintaining a "buy" rating.
Risk hint: the development of the new energy vehicle industry is not as expected; the competition in the industry is intensified.