Main points of investment
Excellent manufacturer of charging pile core components: the company was founded in 2002, focusing on intelligent high-frequency switching power supplies and other related electronic and power products, the current products mainly include 1) electric vehicle charging power supply module and system, 2) power operation power supply module and system, 3) other power products. Electric vehicle charging power module and system became the company's largest main business in 2017, accounting for 89.95% of charging module revenue in the first three quarters of 2015. The company achieved revenue of 389 million yuan in 2016, an increase of 52% over the same period last year, and a net profit of 98 million, an increase of 61.3% over the same period last year. Due to the slowdown in the charging pile industry and the decline in product prices, the company expects to return home net profit of 1.01-105 million in 2017, an increase of 3% and 7% over the same period last year.
High-tech enterprises that pay attention to independent technological innovation: most of the company's teams have a professional background in electronics and power, and adhere to the road of independent research and development and technological innovation. after years of technology accumulation, the company has obtained a total of 17 patents that are still valid. 22 computer software copyright registration certificates, R & D level is in the forefront of the industry.
The charging pile market still has potential, and the development of power operating power supply is stable: at present, the sustainable development trend of new energy vehicles in China remains unchanged. From January to October 2017, the production and sales of new energy vehicles completed 517000 and 490000 respectively, an increase of 45.7% and 45.4% respectively over the same period last year. However, the growth rate of charging pile, as an important supporting facility, is relatively slow. according to the calculation of evcipa data, the current "vehicle-to-pile ratio" is close to 4:1, which is obviously different from the goal that the vehicle-pile ratio is close to 1:1 in 2020. The supporting development demand of charging pile is still urgent.
At the same time, based on the innovation of battery technology and the objective demand of realistic charging habits, we think that DC piles (fast charging) are expected to gradually become the mainstream type in the field of public charging piles. As a high-quality manufacturer of DC charging pile core components, the company has a close cooperation relationship with many major domestic customers (Huashang Sanyou, Nanjing Nengrui, Heshun Electric, etc.) in recent years. Hope to further benefit from the change of industry trend.
The industry of power operating power supply system has developed steadily. The sales scale of the core power module of China's power supply system is about 400 million yuan, and the company's operating income of electric power operating power supply is 50 million yuan in 2016. It is expected that the business income of power operating power supply will continue to maintain a steady and slow growth trend in the future.
The fund-raising is expected to solve the existing capacity constraints, and the charging module will be greatly expanded: the company will raise 385 million yuan on the stock market and will give priority to the "intelligent high-frequency switching power supply industrialization project". It is estimated that the net profit will be increased by about 65 million yuan after reaching production (among which the charging module is expected to increase 140000 sets of production capacity after reaching production in 2020). The fund-raising project will effectively increase the company's production capacity, accelerate the production speed of products, break through the bottleneck of the company's existing production capacity, promote the upgrading of the company's products, the release of production capacity will bring the company's revenue growth, and the project construction will expand the depth of the company's product line. enhance the company's ability to resist risks.
Investment suggestion: since its inception, the company has focused on the manufacture of intelligent high-frequency switching power supplies and other related electronic and power products, and has become a high-quality charging pile module manufacturer with leading sales scale and stable major customer relationship. We believe that under the condition that the development trend of new energy vehicles remains unchanged, the pile-to-vehicle ratio of only "4:1" in China will be gradually improved, and under the background of the decline in the price of charging pile products, the overall charging pile market still has great potential for development. As a high-quality DC charging pile core components manufacturer, the company has a close cooperation relationship with many major domestic customers (Huashang Sanyou, Nanjing Nengrui, Heshun Electric, etc.) in recent years, hoping to further benefit from the change of the industry trend. We estimate that the net profit for 2017-2019 will be RMB 1.06 billion, with a corresponding growth rate of 9.77%, 17.08% and 17.59%, respectively. Compared with the valuation of companies in the same industry, the valuation is about 44.1.
Risk hints: industrial policy risk and downstream market risk, intensified market competition, product price and gross profit margin decline risk, R & D risk, outsourcing processing risk