Sign a major sales contract to accelerate the development of lithium-ion equipment

The company announced the signing of a major sales contract to sell lithium battery production equipment to Mianyang High-tech Exxon New Energy, with a contract amount of 394 million RMB (including tax), and plans to complete delivery and acceptance in 2023.

Mianyang Exxon, a subsidiary of Exxon New Energy in Shenzhen, focuses on new energy lithium-ion batteries and sodium-ion batteries, focusing on centralized energy storage, distributed energy storage and construction machinery and special vehicles. The company signed the Strategic Cooperation Agreement with Shenzhen Exxon in November 2022. The implementation of this contract will further promote the landing of the strategic cooperation framework between the two sides and lay a solid foundation for follow-up cooperation. We maintain the company's 2022-2024 performance forecast, the company is expected to return to the net profit of 1.27max 2.66 / 442 million yuan in 2022-2024, the corresponding EPS is 1.17max 2.45max 4.07 yuan per share, the current share price corresponding to the 2022-2024 PE is 56.2pm 26.9x16.2 times, the company's three major business segments have good development prospects and maintain the "buy" rating.

The penetration speed of intelligent trams increases, driving the demand for automotive electronic equipment.

Under the background of electrification, intelligence and networking, global auto parts suppliers are increasing the research and development of key products such as electrical connections, sensors, controllers and actuators. In the future, automotive electronics will be deeply integrated with technologies in the fields of self-driving, automotive communications and intelligent cockpit, resulting in a significant increase in system complexity and difficulty of development, and the application of intelligent flexible technology will become the key support for the transformation and upgrading of the automotive industry. While consolidating and optimizing the competitive advantages of automotive electrical connections and sensors, the company promotes the market share of automotive controllers and actuators, actively grasps the industrial opportunities of new energy power control systems, body electronic control systems, chassis electronic control systems, ADAS and other market segments, and the growth is highly determined.

The competitive advantage of power exchange equipment is remarkable, and the smooth introduction of Jiereng Zhidian (SAIC) supply chain company has always been in the leading level in the field of power exchange by virtue of the advantages of market, product, R & D, production capacity and so on. has a wealth of whole station delivery, fast landing experience. The customer expansion of the company's power exchange business is smooth. While having customers from operators such as Ningde Times, Xiexin Nengke, Sunshine Mingdao (Geely) and Langu Wisdom, the company captures market opportunities in time and has successfully introduced into the supply chain of Jiereng Intelligent Power (SAIC). SAIC plans to build 300 power stations in China in 2023 and 3000 by 2025, which will benefit the company significantly. Hanchuan intelligent first-mover advantage is obvious, is expected to take advantage of the power exchange industry, the performance continues to grow at a high speed.

Risk tips: the sales of power-changing models are not as expected; the competition in the equipment market is intensified; and the downstream demand is lower than expected.