Dexin Technology: acquire Zhihong Precision and expand Lithium Power Business Dexin Technology used to be mainly engaged in road passenger transport and passenger bus stations. in 2021, the company successfully acquired a 100% stake in Zhihong Precision and successfully cut into the lithium power racetrack. New businesses such as lithium battery automatic cutting moulds have been added. Zhifeng Technology was established in 2022, and Zhifeng Technology is engaged in the related business of extrusion coating die. In the future, the company may further expand the mold business and is expected to achieve sustained growth.
Moving towards the "stacking era", cutting moulds surpass the growth of the industry
With the progress of technology and the trend of industry, the permeability of laminated film is expected to increase. With the product iteration of lithium battery in product shape, monomer capacity and cycle life, and the technical progress of lamination process itself, the improvement of lamination process permeability is worth looking forward to. In the field of power batteries, the lamination permeability of battery enterprises that adopt the "blade battery" route will increase rapidly, while other battery factories will gradually introduce the lamination scheme before 2024-2025 with the maturity of lamination technology and the reduction of cost. With the increase of the cell capacity of the energy storage battery, the laminated permeability will continue to increase. It is estimated that the global demand for power and energy storage batteries using laminated solutions in 2025 is close to 1000GWh, corresponding to a compound growth rate of about 60 per cent in 2023-2025, which is higher than the growth rate of the industry, reflecting considerable alpha. The lithium electric cutting die is the blade and its tool holder used to cut off the pole in the stacking machine or laminating all-in-one machine. it is the core component of the equipment and has the property of consumable materials. with the linear growth of the output of laminated battery, it is estimated that the market scale of lithium cutting die will reach 5.5 billion yuan by 2025.
Core team + technical process + customer service, form a strong competition Zhi Hongjing is the leader of lithium electric cutting mold, which has a strong competitiveness in the field of precision mold manufacturing. First of all, the stability of the core technical team is the core of the company's business development, the lithium battery pole cutting mold industry requires employees to have sufficient practical experience and understanding of the industry, the company's core technical staff have many years of mold manufacturing experience, formed a leading level of research and development in the industry, while the company implements equity incentives and excess performance cash incentives, deeply binds core employees. Secondly, the production and processing JG coordinate grinder and the actual combat team combine to ensure the company's processing and manufacturing, and the company buys second-hand imported equipment from the market, which not only reduces the delivery cycle to meet the company's production needs, but also solves the high cost problem caused by equipment depreciation. Third, the company to enhance product design and processing capacity, continue to increase the added value of products and technical content. Through years of experience, the company has a number of production technologies, and mass production, technical indicators and service life reached the industry-leading level. Fourth, after-sales maintenance is an important part of the service provided by battery mold suppliers. Maintenance personnel sent from the original factory are carried out at the battery factory site or local service points to quickly respond to the maintenance and after-sales needs of major customers. Reduce customer downtime and downtime loss, the company supporting after-sales maintenance, enhance customer stickiness. At present, the company has set up more than ten after-sales service points, basically achieving full customer coverage of the battery factory. Compared with overseas competitors such as Japanese and Korean enterprises, the after-sales service system which can respond quickly and close to customers can better meet the production and application needs of domestic battery manufacturers.
The downstream of the mold is widely used to expand the industry space.
Not only lithium electric cutting mold, continue to develop coating head and other new products and new business. Zhifeng Technology, a subsidiary of Zhihong Precision, has successfully developed a number of high-precision extrusion coating dies, which are superior to the same domestic products in technical index and quality, and have successfully served the lithium electricity industry and OCR glass plate coating. Among them, the slit extrusion die has achieved batch supply, the company is expected to continue to break through new customers. The downstream field of the mold industry is broad, the company actively develops the high-profit mold business, continues to expand the product category, is expected to contribute important achievements.
To sum up, we expect the company's 2022-2023 net profit to be 1.96 yuan and 503 million yuan respectively, corresponding to 71 and 28 times PE respectively, covering for the first time and giving a "buy" rating.
Risk hint
1. The market penetration rate of lamination is not as good as expected.
2. The company's new products and new business development are not as expected.