Event

According to the announcement issued by the company on February 13, 2023, Xiongtao Lithium Power and Sodium Power Industrial Park project landed in Jingzhou. The company plans to invest about 10.5 billion yuan to build a new energy battery industrial park with a planned land area of about 600mu. According to the rolling development plan, the company will supply land in batches with a total construction area of about 500000 square meters to produce 15GWH lithium batteries and 10GWH sodium batteries, mainly used in new energy storage market and 5G communications, IDC data center market. The first phase of the 5GWH lithium battery production project was launched in 2023, and the overall construction of the project was completed within 3 years (2023-2025). On February 8, 2023, Shenzhen Xiongtao Power Technology Co., Ltd. signed the Investment Framework Agreement with the people's Government of Jingshan City. The company plans to gradually build three major production bases in Jingshan City: lead-acid battery, lithium iron phosphate battery, hydrogen energy stack and engine system, so as to realize the overall relocation and return of the company. The overall relocation of lead-acid battery production base has been completed in 2018, and 1 billion yuan has been invested in the construction of Hubei Xiongtao lithium battery production base since 2018. it mainly produces energy storage lithium battery, industrial lithium battery, low-speed vehicle / motorized lithium battery, vehicle fuel cell system and so on.

Comment

Layout of sodium power brings new business growth pole

The company actively distributes the field of sodium electricity, with 14 patents and strong technical reserves, and participates in Bai Sige, a leading enterprise of sodium negative electrode. This time, we signed a framework agreement with Jingshan Municipal Government to build a 10GWH sodium ion battery production line. In the future, sodium ion business is expected to form coordination with the company's existing lithium-ion battery business, which will help the company's industrial layout and development in energy storage, 5G, data center and other fields.

Profit forecast

We estimate that from 2022 to 2024, the company will achieve an operating income of 3.907 million yuan, with a net profit of 1.64 billion yuan and a net profit of 250 million yuan, which belongs to the parent company. The EPS of the company is 0.43, 0.65 and 0.87, respectively, and the current share price corresponds to 44.25, 29.12, 21.82 of PE. To sum up, we give "overweight" rating.

Risk hints: the risk of the new capacity being put into production is not as expected, the promotion of the hydrogen industry is not as good as expected, and the reduction of fuel cell costs is not as expected.