"specialized and special new" small giant enterprise, deep ploughing nuclear power, thermal power condensate fine treatment: the company won the title of national "specialized special new" small giant enterprise in 2020. Long-term focus on nuclear energy, thermal power plants (supercritical, ultra-supercritical units) condensate treatment system equipment, desalination (including seawater desalination) system equipment and sewage treatment system equipment research and development, design and integration. The core product of the company, nuclear power condensate purification system equipment, has been used in a number of large-scale nuclear power projects at home and abroad, among which China's third-generation nuclear power "Hualong No.1" has independent intellectual property rights.
The condensate fine treatment system equipment of the first batch of projects in China and abroad are provided by Liyuan Technology.
In the context of energy supply, the thermal power and nuclear power industries are improving, helping to revive the main business of condensate fine treatment:
1) Industry level: thermal power is a better choice to ensure safe and stable power supply and enhance the flexibility of power system. In 2021, China's thermal power investment reached 67.2 billion yuan, an increase of 21.52 percent over the same period last year, changing from negative to positive compared with 2020. From January to May 2022, thermal power investment reached 23.1 billion, an increase of 54.9 percent over the same period last year, and the inflection point of thermal power investment has reached. On April 20, 2022, the standing Committee approved six nuclear power units at one time. Since the nuclear power examination and approval resumed in 2019, 4, 4 and 5 units have been approved respectively from 2019 to 2021, and nuclear power investment is expected to show a gradual acceleration trend.
2) at the company level: the company has been ploughing thermal power and nuclear power condensate for many years. In 2021, the total income from the thermal power and nuclear power industries was 250 million yuan, accounting for 60% of the total revenue of Prida. According to the prospectus, the company's market share in the field of nuclear power condensate refining system equipment is about 28.7%, and that of thermal power condensate refining system equipment is about 10.47%. As one of the few domestic suppliers of condensate refining equipment that can meet the requirements of nuclear power and large-scale thermal power production, the company has provided hundreds of sets of system design, equipment integration and other products and technical services for China Nuclear Power Group, Huaneng Group, Datang Group, Huadian Group, SPIC Group and other groups. By the end of 2021, there were 53 commercial nuclear power units in China. There are 16 nuclear power units under construction, and the number of nuclear power units supplied by the company for condensate refining system equipment is 14.
Second venture layout hydrogen fuel cell engine: since the company established the hydrogen fuel cell engine system team in 2021, the business has developed rapidly. The HYPSR-01 fuel cell system prototype manufactured by the company in the second half of 2021 has passed the test of the National New Energy vehicle quality Supervision and Inspection Center. According to the company announcement, in March 2022, the company won an order for four 100kW hydrogen fuel cell engines from Zhengzhou New generous heavy Industry, with a total contract amount of 4.2 million yuan (including tax). The company completed the delivery of one hydrogen fuel cell engine on March 30, achieving an income of 929200 yuan, and other orders are being delivered one after another. On May 28, 2022, the company issued a convertible bond issuance plan with a scale of 330 million yuan, which is mainly intended to be invested in the annual production of 5000 sets of hydrogen fuel cell engine system. There is a broad space for the development of hydrogen energy in the future. According to the White Paper of China hydrogen Energy and fuel Cell Industry issued by the Innovation Strategic Alliance of China's hydrogen Energy and fuel Cell Industry
It is predicted that the output of fuel cell vehicles is expected to reach 1.3 million units per year and 5 million units per year by 2035 and 2050 respectively. The company's second venture, the layout of hydrogen fuel cell engines, is expected to build a second growth curve.
Investment suggestion: the company ploughs deeply in the field of nuclear power and thermal power (supercritical and ultra-supercritical) water treatment, and under the favorable background of thermal power recovery and nuclear power approval, it is expected to help the main business of condensate fine treatment to recover and have sufficient power for short-term growth; at the same time, lay out the field of hydrogen fuel cell generators and open up the second growth curve. We estimate that the company's income from 2022 to 2024 will be 427 million yuan, 531 million yuan and 621 million yuan respectively, with a growth rate of 1.6%, 24.4% and 16.9% respectively, and a net profit of 38 million yuan, 60 million yuan and 85 million yuan respectively, with a growth rate of 2.7%, 59.9% and 40.5% respectively. Outstanding growth; for the first time given a Buy-An investment rating, the 6-month target price is 12.0 yuan.
Risk hints: project delay risk, policy promotion is not as expected, and new project research and development is not as expected.