Domestic cans / capping equipment leading enterprises to transform the structure of new energy batteries. In 2021, the company achieved revenue of 1.003 billion yuan, + 14% year-on-year, net profit of 107 million yuan, revenue of 659 million yuan, + 69%, and net profit of 78 million yuan, + 115%, respectively. As of April 25, 2022, the company's traditional can / cover equipment business had an order of 952 million yuan, a year-on-year order of + 27%, and the capacity utilization rate was as high as 130%. As the only domestic can / cover equipment enterprise with DWI technology, the company has achieved the industry leader by virtue of its unique metal precision forming technology, with a market share of 60%, has no domestic competitors and is in the forefront of the world. As the cylindrical battery shell is homologous with the can technology, the company has successfully developed the production equipment of high-speed battery shell, and the battery shell business has contributed 78 million yuan in revenue in 2021.
Subvert the existing battery shell production technology, with high efficiency and low-cost moat advantage. The company transplants the unique DWI and automation technology of the can production line, as well as related patents to the new energy battery shell production line, subverts the existing structural parts technology, greatly improves the material utilization and efficiency, and significantly reduces the cost of the battery shell. The speed of small cylindrical battery shell is up to 1200 / min (10 times that of Asahi Seiki), the design speed of large cylindrical battery shell is 200,500 / min (traditional technology is 25-30 / min), and the speed of square shell is 50,100 / min (about 5 times that of traditional single machine).
The downstream power battery industry continues to be booming, and the omni-directional layout of the "cylindrical + square" battery shell opens the company's second growth curve. We expect China's power battery structure market to reach 41.1 billion yuan in 2025, with a CAGR of 33% in 2022-2025. The advantage of the company's DWI technology on the 4680 cylinder is more obvious, with the rapid increase of 4680 permeability, the company's increment is considerable. The company deeply binds the Ningde era through Dongguan A Li. In the future, with the expansion of production in Ningde, the company's market share in the square shell business will further increase. In addition, in August 2022, the company's fourth private placement will accelerate the promotion of each business.
Profit forecast: the company's net profit from 2022 to 2024 is expected to be 190 million, 310 million and 470 million respectively, and the PE is 63 times, 39 times and 25 times respectively. Give a "buy" rating.
Risk hint: the prosperity of can-making equipment is declining; the business of lithium battery structure is not up to expectations.
