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On February 28, Camel announced that it planned to invest 6.8 billion yuan to build two lithium battery production bases in Xiangyang High-tech Zone. In order to better meet the differentiated market demand and improve the company's industrial layout, the company plans to invest 6.8 billion yuan in Xiangyang High-tech Zone to build 12 million sets of low-voltage lithium battery production base and 10GWh energy storage lithium battery production base project. The first phase of the project has a rolling investment of 3.3 billion yuan and a land requisition of 280mu, with an annual output of 4 million sets of low-voltage lithium power and 2GWH energy storage lithium power. The second phase of the project decides the investment amount according to the market demand and production capacity plan, and plans to invest 3.5 billion yuan, expropriate 250mu of land, and build an annual output of 8 million sets of low-voltage lithium power and 8GWH energy storage lithium power.
Guoxin Automobile's point of view: camel shares are the leading enterprises of starting batteries (49% of OEM and 29% of AM in 2022), with the layout of lead-acid battery recycling industry chain (production-sales-recycling-remanufacturing) and new energy battery recycling industry chain, focusing on the three major markets of front, rear and overseas. The company is committed to becoming a global leader in all-round solutions for automotive low-voltage batteries, with clear development goals from the four dimensions of lead-acid batteries, new energy batteries, overseas markets and innovation incubation. Strive to "re-create a camel" on the revenue scale by 2025, and achieve the strategic goal of business income exceeding 20 billion yuan.
The company plans to invest in the construction of 12 million sets of low-voltage lithium battery production base and 10GWh energy storage lithium battery production base in Xiangyang High-tech Zone, which will help to better meet the differentiated market demand and improve the company's industrial layout. According to the company announcement, in the first half of 2022, the company's 12V auxiliary lithium system received the designated project of BMW in Germany; the company's 12V lithium products were designated by BAIC Foton, Guangzhou Huitian, Dongfeng, Geely and some new car-building projects; and 24V lithium products were designated by BAIC Foton, Valin, Sany Group, Xugong Automobile and other projects.
Due to the strict control of the epidemic in many places in the country in 2022, the delivery cycle and delivery cost of the company were affected. We downgrade our profit forecast and estimate that the net profit of 2022 and 2023 in 2024 will be $4.94 million, respectively, and the corresponding EPS will be 1.97 billion yuan, and the corresponding PE will be 1.07 times that of 21-12-9, maintaining the "Buy" rating.