[matters]

Recently, the company announced that the holding subsidiary signed an equipment purchase intention agreement, and the holding subsidiary "Guanhua New Energy" and "Big Family Lithium Power" signed the "equipment purchase intention Agreement", confirming that Dazhong Lithium Power is one of the strategic cooperation suppliers of the lithium ion square shell battery module PACK production line to be invested by Guanhua New Energy. The total purchase amount is estimated to be 67 million yuan, and the specific amount is subject to the final purchase contract.

[comments]

Focus on smart electricity and new energy. At present, the company's main business is divided into three parts: smart grid equipment business, new energy vehicle charging facilities business, energy storage business. Smart grid equipment business: smart electrical switchgear, intelligent meter power information collection system; recharging facilities business: recharging equipment R & D and sales, recharging station operation; energy storage business: covering all products except the cell, for the generation side, grid side, user side and other scenarios, launch the corresponding energy storage products and programs.

Smart grid equipment customer recognition is high, benefit from the grid bidding volume. The company's smart grid equipment customers include State Grid, South Grid and Rail Transit Group, etc. Nanjing Nengrui, a subsidiary, is one of the mainstream manufacturers of smart meters and power consumption information collection systems in China, and has been continuously evaluated as Class A products in the performance ranking of State Grid in recent years. The grid investment of the State Grid in 2023 will exceed 520 billion yuan, another record high. It is expected that this year will be the year of bidding for power grid equipment. With the improvement of the bidding quantity and value of smart meters, the company is expected to fully benefit.

Rechargeable product system is mature, heavy truck power replacement landing, has started the European standard certification. The company is one of the few domestic enterprises that master high-power fast charging technology, V2X recharging technology, flexible intelligent charging technology, Internet + intelligent charging technology, orderly charging technology and so on. The charging products of the subsidiary "Nanjing Nengrui" cover electric steam / electric bicycles / marine charging equipment, etc., covering all kinds of power AC / DC charging piles. In 2022, the company cooperated with two car companies on three heavy truck exchange power station projects, while actively expanding overseas business and carrying out European standard certification, which may accelerate the company's overseas expansion.

The energy storage business brings new increments and there are plenty of orders on hand. The company's energy storage business is mainly for industrial and commercial energy storage on the user side, optical storage / wind storage projects on the grid side and independent energy storage projects. Sufficient wind / light storage orders: the company and its subsidiary "Guanhua New Energy" have signed a series of contracts for energy storage systems, optical storage systems and optical storage and charging systems with Zhejiang Jin Ruiguan and Suqian Ronghui, with a total amount of 692.338 billion yuan. Strategic cooperation agreements have been signed with China Science and Technology Tangxin and Jiangsu Baolong, among which three wind and storage integration projects with a total capacity of 80MWh are mentioned in the strategic agreement with Jiangsu Baolong, with an estimated total price of 680 million yuan.

We are optimistic about the company's two-wheel drive strategy of "Smart Power + New Energy". Both traditional business and new energy business are marginal. From 2022 to 2024, we expect to achieve revenue of 12.11 shock 21.70 / 3.027 billion yuan and net profit of 0.54 shock 1.37 / 247 million yuan, corresponding to 0.07 EPS 0.17 shock 0.30 yuan and PE 36.40 pound 20.21 times, giving "overweight" rating.

[risk Tip]

Market competition intensifies

Raw material price fluctuation

The progress of the project is not as expected.