Focus on industrial and commercial energy storage to provide customers with overall solutions. The early layout of the company's energy storage business is perfect, except for the battery cell can be self-produced at present. At present, the company already has a certain shipping capacity, including photovoltaic distribution and storage, substation power grid to participate in peak regulation and frequency regulation, industrial and commercial energy storage have a considerable number of demonstration projects. In 2023, relying on the advantages of local channels in Henan, the company strives to create Baidu, Inc.-level leading products, focusing on industrial and commercial energy storage and distributed storage market, grasping the growth of sub-areas, while having more advantages in profitability.
The charging pile is based in Henan and gradually expands outward. The company's charging pile business is expected to contribute effectively to the performance since 2022. At present, the company has signed a number of projects, which has significant advantages in Henan province, especially in Nanyang local market, and the annual income is expected to maintain a high growth rate. At present, the charging pile of the company can realize self-supply of charging module, and the gross profit margin is at a high level in the industry. Benefiting from the advantages of policy promotion and market channels, business is expected to continue to grow at a high speed.
Lightning arrester know-how is obvious in traditional business, and the benefit from UHV has doubled this year. In the lightning arrester industry, the raw material formula know-how is significant, especially in the UHV market, there are only 4 manufacturers with supply qualifications, the average gross profit of lightning arrester reaches 40%, of which the UHV-related gross profit margin can reach 60%. At present, the market pattern is stable, which is a typical high barrier market segment. UHV arrester accounts for 30-40% of the total lightning arrester, and we expect the company's lightning arrester business to grow rapidly in 2023 against the background of accelerated UHV investment.
Investment suggestion: the company's 2022-2024 profit is expected to be 1.81 billion yuan, corresponding to the February 9, 2023 PE of 30.6, 18.4, 15.1 times, giving the company a "buy" rating for the first time.
Risk tips: policy effect is not as expected; downstream demand is not as expected; raw material prices continue to rise; macroeconomic fluctuations; industry policy changes.