On October 10, the company announced that the wholly-owned subsidiary won the bid "National Grid Electric vehicle Service Co., Ltd. 2020 low-speed car replacement cabinet frame procurement project". The demand for equipment such as smart flushing cabinets in the new energy industry has become an important driving force for the company's emerging business, maintaining its buy rating.
Support the main points of rating
The project of changing electric cabinets for national grid electric vehicles may lead to a revenue of nearly 70 million yuan in the first phase. According to the company announcement and bid winning announcement, Weihai New Beiyang Digital Technology Co., Ltd. ("Digital Technology"), a wholly-owned subsidiary, won the bid No. 1 (security threat analysis capability enhancement software for vehicle networking platform) and Section 3 (procurement of low-speed car change cabinet framework) of the 2020 procurement project of Nanrui Group State Grid Electric vehicle Service Co., Ltd. The latter framework project is expected to purchase 3600 exchange cabinets, which is calculated according to the winning bid price of 19000 yuan, which can drive the income value of about 68.4 million yuan during the project cycle.
There is a strong demand in the field of new energy and vehicle networking, and follow-up business opportunities are expected to continue. New energy has entered the construction cycle, vehicle networking is a comprehensive field of new energy and information technology, and intelligent equipment is an important part of the industry landing. Customer Guodian Nanrui is a leading enterprise in the industry, and plans to land low-speed cars to replace electric cabinets in various cities across the country, so it is possible to make additional investment in the follow-up, and there are similar business opportunities for upstream and downstream enterprises in the industry. The company's project has benchmarking effect and first-mover advantage. With reference to the demand volume of the announced project, new energy replacement cabinets are expected to grow into a billion-level market and become a supporting industry besides finance, logistics and retail.
The non-contact landing is long-term, which leads to the enhancement of business continuity. The company reported that the epidemic situation has given rise to new opportunity businesses such as intelligent food dispensing terminals, drug sales terminals, intelligent recharging facilities, power cabinets and so on. Due to the repeated epidemic situation abroad and the continuous intensity of domestic epidemic prevention measures, the persistence of the relevant business will also exceed the previous market expectations, and the contribution to the company may be normalized.
Valuation
The net profit for 2020-2022 is expected to be 3.7,4.9 and 610 million yuan, EPS is 0.55,0.74,0.92 yuan, and PE is 18,14,11 times. The company's emerging business is making good progress, the traditional business and logistics, retail business recover quickly, the valuation advantage is obvious, and the buy rating is maintained.
Main risks faced by rating
New energy projects are not progressing as expected; overseas markets are sluggish.
