Event description:
Dongjie Intelligence announced on the evening of May 9 that the company and Ningde Shidai signed a “Framework Procurement Contract” on cooperation between the two parties, and Dongjie Intelligence became the official supplier of Ningde Shidai.
Incident reviews:
The new energy business continues to gain strength, entering the Ningde era supply chain. The company issued an announcement to become the official supplier of Ningde Era and establish a long-term stable cooperative relationship with Ningde Era, indicating that the Ningde Era's further recognition of the company's intelligent logistics and warehousing solutions will also promote the company to continuously improve its technical level, ensure its superior position in cost control, product quality, technological innovation, etc., and enhance the company's market competitiveness in the field of new energy batteries. This cooperation is an effective result of the company's establishment of a new energy division to implement the new energy business development strategy. It is conducive to the growth of the company's future business performance and continuous improvement of profitability. We expect that the approval of the Ningde Era Verification will provide an effective endorsement for the company's entry into the new energy sector, which is conducive to speeding up business development.
The market for intelligent logistics warehousing systems is broad. With years of technical reserves, the future is worth looking forward to.
The company has long been deeply involved in the intelligent logistics equipment industry and is a leading enterprise in the field of intelligent warehousing and logistics in China. It has benchmark projects in key fields such as automobiles, construction machinery, medicine, food and beverages. Customers include Daimler AG, WM Motors, Volkswagen, Shanxi Fenjiu, Anhui Kouzi Liquor, Hengshui Laobaigan Liquor, and other well-known companies in the industry. In recent years, the company's intelligent logistics and warehousing business has maintained an overall growth trend. Combining its own advantages, it has developed industries with potential for rapid explosion, such as power lithium batteries, photovoltaics, iron and steel metallurgy, and cold chain logistics, and expanded new business fields. Furthermore, the company is one of the few domestic suppliers that also has the ability to provide three major automobile production system solutions for assembly, welding, and painting. It has now established business cooperation with well-known NEV companies in the industry such as Geely New Energy, BAIC New Energy, BYD, Xiaopeng Motor, and Jiangling New Energy. With the gradual increase in the penetration rate of new energy vehicles and the in-depth cooperation between the company and the Ningde era, the company will have broad space for intelligent logistics and warehousing systems for new energy vehicles and power lithium batteries in the future.
Profit forecasts, valuation analysis and investment suggestions: The company's EPS for 2022-2024 is expected to be 0.27\ 0.42\ 0.58, respectively, and the corresponding PE is 28.2\ 18.4\ 13.2 respectively; considering factors such as the impact of the domestic epidemic on economic recovery and delays in downstream demand, intelligent logistics and warehousing systems will continue to grow as downstream new energy vehicles and the e-commerce industry gradually recovers. The first coverage gave an “increase in holdings - A” investment rating.
Risk warning: The impact of the spread of the epidemic; downstream demand fell short of expectations; accounts receivable grew too fast; industry competition intensified.
