Relying on its own core technical capabilities, the company comprehensively distributes the two major fields of industrial automation and energy and electricity. The company independently developed the first generation of frequency converter products in 2002. After nearly 20 years of development, its business has been gradually expanded to industrial automation, network energy, new energy vehicles and other fields.
Since its inception, the company has adhered to the R & D-driven business strategy, the R & D expenditure rate has been maintained at more than 10% for a long time, and the size and development capability of the R & D technical team are in the leading level in China. Since 2021, the company has enjoyed a good momentum of business growth, with 2021/2022Q1-Q3 revenue reaching 30.1 billion yuan, an increase of 31.6%, 36.0%, and 31.6% respectively over the same period last year. On January 17, 2023, the company issued an annual performance forecast for 2022, which is expected to achieve a net profit of RMB2.6-300 million, an increase of 43% over the same period last year.
The development of domestic industrial automation is improving, and the related business of the company is growing steadily. Under the background of the transformation and upgrading of the manufacturing industry and the acceleration of domestic substitution, the overall domestic industrial automation market has maintained rapid growth in recent years. The company is one of the earliest manufacturers to enter the field of low-voltage frequency converter in China, and has formed a long-term technical layout and profound channel accumulation in servo systems, motors, controllers and other products, and the domestic market share is in the forefront. At the same time, the company is one of the few domestic enterprises that carry out industrial control business layout overseas. Low-voltage frequency converter is widely used in more than 100 countries and various application fields, and is in a leading position in domestic brands. in recent years, the market share in India, Southeast Asia, America, Europe and other overseas regions has maintained rapid growth.
Downstream demand continues to break out, and the company's optical storage and new energy car business are expanding rapidly. 1) Photovoltaic and energy storage: the global energy transformation accelerates the superimposition of high overseas electricity prices, the household optical storage market demand continues to exceed expectations, the company's inverter product system is complete, the channel layout has achieved initial results, and the optical storage business is expanding rapidly. 2022H1 achieved revenue of 90.7 million yuan, an increase of 167% over the same period last year. 2) New energy vehicles: affected by the decline of domestic subsidies from 2018 to 2019, the company's new energy vehicle business suffered a large loss. With the expansion of C-end demand since 2021, the domestic new energy vehicle market has entered a stage of self-driven high-speed growth. The company focuses on the electric control field of new energy vehicles, and has established long-term cooperative relations with leading car companies such as Dongfeng, Geely and Great Wall. The revenue of 2022H1 new energy vehicle business is 224 million yuan, a year-on-year growth rate of 137%.
Investment advice: the company is a difficult and anti-transformation enterprise, the industrial control business is sound, the domestic and overseas markets are expanding steadily, and the follow-up business development is expected to accelerate with the warming economy. In addition, the company's new energy business has crossed the operating trough from 2018 to 2020, the introduction of a large number of talents has brought rapid expansion of channels and products, and the new energy business has doubled its growth. It is expected to turn losses into profits in 2023, which has become an important driver of the company's performance growth. It is estimated that the company's operating income from 2022 to 2024 will be 41.71xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx PE.
Risk hints: the change of industrial policy, the intensification of market competition, the risk of technological iteration, model assumptions and measurement results have errors with the actual situation and so on.