Deep ploughing busbar product business, steady growth in performance
Witeng Electric's main business is bus products, including high and low voltage buses, photovoltaic welding strips, medium and low voltage complete sets of equipment and copper and aluminum products. It can be used in power grid, new energy, data communications, rail transit, industrial manufacturing, commercial real estate and other fields.
In the first three quarters of 2022, the company achieved a total operating income of 1.123 billion yuan, an increase of 22.03% over the same period last year, and a net profit of 50 million yuan, an increase of 13.02% over the same period last year. The gross profit margin was 18.28%, and the net profit rate was 4.74%. Among them, Q3 achieved operating income of 387 million yuan in a single quarter, up 6.64% from the same period last year, and realized a net profit of 18 million yuan, up 25.21% from the same period last year. Gross profit margin was 19.75%, up 2.12pcts from the previous month, net interest rate was 4.84%, and 0.23pcts was up from the previous month.
Benefiting from the growth in downstream demand, the photovoltaic welding strip business has grown significantly.
The company ploughs photovoltaic welding tape business, and its main customers include Jingao, Jingke, Trina and other well-known enterprises in the industry. 2022H1, the company's photovoltaic welding strip products achieved business income of 263 million yuan, an increase of 151.09% over the same period last year, accounting for 35.75% of the total revenue. The substantial increase in performance is mainly due to the high prosperity of the photovoltaic industry and the increase in the sales unit price of the company's products. We expect that with the gradual landing of the company's new production capacity, the company's photovoltaic tape business will benefit from the high downstream demand and continue to grow at a high speed.
Increase production capacity by a large margin and actively lay out the optical storage business
Since 2022, the company has actively arranged the energy storage related business, and the company's energy storage system products have the characteristics of customization and non-standardization. at present, the relevant production line has been gradually completed, and the delivery and application of the energy storage system has been realized.
In December 2022, the company announced that it intends to raise no more than 1.002 billion yuan for the construction project of annual 5GWh energy storage system and the intelligent production project of 25000 tons of photovoltaic welding strip. Among them, the construction period of the energy storage system project is 2 years, and the construction period of the photovoltaic welding strip project is 1 year. After the fund-raising project is completed, it is expected to open up new growth space for the company.
Profit forecast
The forecast company's income from 2022 to 2024 is 14.9,26.5 and 4.1 billion yuan respectively, and the EPS is 0.58,0.96,1.43 yuan respectively (without considering the impact of PE). The current stock price corresponds to 45,27,18 times of IPO respectively, covering for the first time and giving a "buy" investment rating.
Risk hint
The fund-raising project is less than the expected risk, the market competition aggravates the risk, and the downstream demand decline risk.