Xiongtao Co., Ltd. is a key battery manufacturer in China, with products covering lead-acid batteries, lithium-ion batteries and fuel cells. From the perspective of revenue and product structure, lead-acid batteries contribute the main revenue to the company, lithium battery business is gradually increasing, and fuel cells have not yet started. In 2021, the company's total revenue was 3.11 billion yuan, of which lead-acid battery revenue reached 2.051 billion yuan, accounting for 65.94%, with a gross profit margin of 10.99%; lithium battery business revenue reached 1.013 billion yuan, accounting for 32.58%, with a gross profit margin of 13.40%; fuel cell business revenue accounted for relatively small, 2021 revenue of 46 million yuan. From 2017 to 2019, the company's performance grew rapidly, but it declined in the past two years due to the epidemic and rising prices of raw materials. But in the long run, if the price of raw materials falls later, the profit margin of the company's traditional business is expected to improve. At the same time, the company has a deep layout in the fuel cell field. As the hydrogen energy industry continues to mature, the fuel cell business may open a new growth curve for the company.
The development of traditional business is sound, and the company has a deep accumulation in the field of data center and base station construction, which is expected to fully benefit. The company's lead-acid battery and lithium-ion battery mainly focus on the data center and base station power backup market. in recent years, with the increase of data flow demand, the downstream data center and base station power backup market shows a high-speed development trend. In the field of lead-acid battery, the company's main products are valve-controlled lead-acid battery and colloid battery. Relying on the earlier market layout and R & D technology accumulation, the company has a stable market share. There are certain advantages in battery types, product quality, customer resources, sales channels and production costs. In the field of lithium-ion batteries, the company competes misplaced with mainstream battery manufacturers, and most of the major enterprises in the industry are concentrated in the fields of power batteries and energy storage batteries with larger market space but more fierce competition. The company is mainly oriented to the field of power backup for data centers and base stations, and most of them are the same kind of customers as lead-acid batteries. With the advantages of solid customer resources and sales channels, the company is expected to occupy a larger market share in this field.
Fuel cell has a broad prospect, the company has a wide layout in the field and has a high status in the industry, which is an important guarantee for its long-term development. Hydrogen energy has been incorporated into China's "carbon neutral" energy strategy, which is a strategic choice for our country to optimize energy consumption structure and ensure the security of national energy supply. The company began to lay out the hydrogen energy industry in 2019, and took hydrogen energy as the company's strategic development direction, jointly with Tongji University, South China University of Technology, Taiyuan University of Technology and Wuhan University of Technology to form an integrated line of industry-university-research to develop hydrogen energy stack. Hydrogen engine and other technologies.
At present, with a wide range of products and excellent performance, the company is the only company in China with a complete industrial chain of localized hydrogen fuel cells, with partners covering many mainframe plants, iron and steel, energy and chemical enterprises. With the continuous maturity of the hydrogen energy industry, the company is expected to usher in rapid development.
Investment suggestion: we expect the company's 2022-2024 net profit to be 141 million yuan, 262 million yuan and 371 million yuan, corresponding to PE 58, 31 and 22 times, respectively. Reference to comparable company valuation, while considering the company's business structure, give the company a certain discount, give the company 23-year performance 40 times PE, corresponding to the target price of 27.3 yuan, the first coverage, given a "recommended" rating.
Risk hint: the risk of raw material price fluctuation, the construction of data center and base station is not as expected, and the development of fuel cell industry is not as expected.
