Events:
Recently, the company disclosed a major asset purchase report, which intends to purchase 51% of Ningde Dongheng Machinery in cash, with a transaction amount of 816 million yuan. Dongheng Machinery promised a net profit of not less than 1.5,1.6 and 170 million yuan in 22-24.
Main points of investment:
Dongheng Machinery, which specializes in power battery module components, is an excellent supplier in Ningde era. Dongheng Machinery, founded in 2014, has been providing battery structure services around Ningde Times, a major customer, including side plates, end plates and special structural parts.
In recent years, with the rapid expansion of production capacity demand in the Ningde era, the company achieved revenue of 904 million yuan in 2021, an increase of 118% over the same period last year, and a net profit of 142 million yuan, an increase of 129% over the same period last year. From 2020 to 2021, Ningde era accounted for 87.63% and 92.99% of the company's operating income, respectively, making it an excellent supplier in Ningde era.
The barrier of module structure is high, and it is in the period of technical iteration, and Dongheng machinery industry is in the lead. Compared with the traditional automobile structure, the power battery shell structure not only ensures the structural strength, such as compression resistance and corrosion resistance, but also needs to consider the special requirements of thermal runaway protection of power battery, such as electrical conductivity, insulation, flame retardant and so on. Through the accumulation of technology, Dongheng Machinery has flexibly mastered the mass production processes such as metal cutting, Calendering, film pasting, spraying and welding to provide customers with personalized battery shell solutions and mass production solutions. At the same time, the company closely follows the changes of product demand in Ningde era, attaches importance to the research and development of new products and new technologies, and lays out the research and development of related technologies, processes and materials in advance in possible technology fields, and is expected to benefit from new technological changes such as CTP and CTC in the future.
Xianhui technology and Dongheng machinery are combined and coordinated. Xianhui cooperates with a number of power battery manufacturers, including CATL, to help customers establish and transform intelligent power battery production lines. Dongheng Machinery provides matching for the main products of CATL. After cooperation, the two sides will jointly serve battery manufacturers such as CATL. As the production line naturally needs to match with parts in the later stage, including the replacement of fixtures and the deployment of production lines with the update of products, after cooperation between the two sides, we can communicate more effectively and provide customers with the best solution as a whole. The two sides can produce synergy in customer development, resource maintenance, internal production efficiency improvement and other aspects. Xianhui Technology can further expand the product range and obtain new profit growth points. Dongheng Machinery will also use the customer resources of Xianhui Technology to enhance market recognition, improve operational efficiency through the intelligent upgrading of the production line, and widen financing channels and enter the development fast lane with the help of the capital platform of listed companies.
Raise the 22-24 profit forecast and maintain the "buy" rating. Taking into account Dongheng Machinery and thickening profits, we raised our profit forecast, and estimated that the net profit for 22-24 years is 2.41,4.43 and 622 million yuan respectively (the original profit forecast for 22-24 years is 2.25x417,608 million yuan), while the current share price corresponds to 29X, 16X and 11x PE for 22-24 years respectively, maintaining the "buy" rating.
Risk hint: the risk that the sales of new energy vehicles are less than expected; the risk of intensified market competition. On June 8, the company received an inquiry letter from the Shanghai Stock Exchange on the draft asset reorganization, requiring explanation and additional disclosure: 1) evaluation, forecast and goodwill; 2) customer and business information of the underlying company; 3) financial information of the underlying company; 4) trading arrangements; 5) Science and Technology Innovation Board positioning and synergy. At present, it has not reached the 10-day trading period, and the company has not yet replied. Remind investors to pay attention to the company's follow-up response.
