Deep ploughing bus link for many years, plus optical storage business to inject new vitality. The company was founded in 2004, mainly engaged in high and low voltage bus, photovoltaic welding belt, medium and low voltage complete equipment and copper and aluminum research and development, manufacturing and sales, after nearly 20 years of research and development, pilot, innovation and continuous accumulation, the company has developed into a well-known busbar enterprise in domestic transmission and distribution and control equipment manufacturing industry. At present, with the help of the production of power distribution system products and the technical advantages accumulated in photovoltaic welding tape products for more than a decade, the company has strongly cut into the field of optical storage to inject new vitality into the development of the company. In recent years, the company's performance has maintained a good growth trend, with revenue of 1.123 billion yuan in the first three quarters of 2022, an increase of 22.03% over the same period last year, and a net profit of 50 million yuan, an increase of 13.02% over the same period last year.
Photovoltaic welding strip: benefit from photovoltaic high prosperity, low temperature welding strip is expected to release. It is expected that with the continuous release of silicon production capacity, silicon production capacity is no longer a bottleneck restricting the development of the industry in 2023, the newly installed capacity is expected to reach 350GW, and the demand for photovoltaic modules will further increase. Welding strip, as an important auxiliary material for photovoltaic modules, has a broad market. We estimate that the demand for welding strip will reach 13.20, 17.74, 290, 25.69 million tons in 22-25, with 2021 as the base year, and the demand for CAGR will be 29% by 2025. Relying on the strength of advanced technology research and development to seize market share, and deeply bound with a number of downstream customers, the company is expected to benefit from the high prosperity of photovoltaic. In addition, in the context of the promotion of HJT industrialization, the company's low-temperature welding strip products are expected to achieve volume.
Energy storage: the east wind of policy has arrived and is expected to provide new increments. The energy storage market at home and abroad is highly prosperous, foreign geopolitical factors aggravate the energy crisis, electricity prices continue to rise, the distributed energy storage market continues to heat up; many domestic provinces and cities have introduced photovoltaic storage policies to constantly improve the market-oriented mechanism of energy storage. We predict that the global installed capacity of energy storage will reach 403G in 2025. CAGR in 22-25 will be 92%. The company has established the tuyere plus code energy storage business, with an additional 580 million yuan for the annual production 5GWh energy storage system project, which includes grid-side and new energy side energy storage power station system, mobile portable energy storage system, distributed industrial and commercial energy storage system, household energy storage system, and supporting energy storage battery modules PACK, BMS, EMS, etc., expanding the production scale of the company's energy storage products. Lay the capacity foundation for the overall enhancement of profitability and core competitiveness.
Bus: the basic market is sound, and it will continue to make efforts in the future. In the transmission and distribution system, the bus has the advantages of large transmission power, strong current carrying capacity, good heat dissipation, low loss, safety and reliability, and has gradually replaced the cable in the high current transmission scene or the application scene with space requirements. The company has a rich matrix of bus products, including low-voltage bus and high-voltage bus, achieving full coverage of application scenarios, and has been recognized by State Grid, China Mobile Limited, Huawei, ABB and other large enterprises for its superior and reliable product performance. National key projects such as the National Stadium, Hong Kong-Zhuhai-Macao Bridge and Beijing Daxing International Airport have demonstrated the company's outstanding brand influence.
Investment suggestion: we estimate that the company's revenue from 2022-2024 will be 1.697 Universe 3.212 billion Yuan, and the net profit from the parent company will be 0.71 Plus 178,308 million Yuan, corresponding to the closing price on January 6, and the PE will be 69x/27x/16x.
The company's basic busbar has developed steadily, and the production capacity of photovoltaic welding tape and energy storage business continues to expand, which is expected to benefit from the rapid development of renewable energy and maintain the "recommended" rating.
Risk tips: downstream demand is lower than expected, raw material prices fluctuate, fund-raising project progress is not as expected, and so on.