Event: the company issued a notice on the signing of a major sales contract, Mianyang High-tech Exxon New Energy Technology Co., Ltd. intends to purchase lithium battery production equipment from the company, the purchase amount is 394 million yuan (including tax).

Lithium power equipment landed on a large order, and cooperation with customers has been continuously deepened. In November last year, the company signed a "strategic cooperation agreement" with Shenzhen Exxon New Energy Company. Shenzhen Exxon New Energy Company will place no less than 3GWh's first lithium equipment purchase order to the company, and at the same time, give priority to purchasing company equipment under the same conditions in the follow-up 50GWh investment. The landing of the order of about 400 million yuan marks the deepening cooperation between the company and Shenzhen Exxon New Energy Company, and the order is expected to be completed for delivery and acceptance this year.

The order is full on hand. By the end of the third quarter of 22, the company's total hand-on orders reached 2.764 billion yuan (including tax). In terms of production capacity, the company currently has a capacity of about 680 sets of power stations, and plans to raise 2000 sets / annual production capacity, which is expected to be greatly increased in the future.

The giants have entered the power station operation market one after another, and the equipment leaders have fully benefited. At present, complete vehicle factories (SAIC, Geely, etc.), energy enterprises (Petrochina Company Limited, State Power Investment, etc.) and Ningde era and other power battery enterprises have made detailed business plans. According to iResearch Consulting and company announcement, only six enterprises, namely, Olympic New Energy, NIO Inc., China Petroleum & Chemical Corp, Geely Automobile, Xiexin Nengke and SPIC, have planned to change power stations in the past 25 years. Cooperation has been established with Xiexin Nengke, Ningde era, Sunshine Ming Island (Geely) and so on, which is expected to fully benefit the development of the exchange power station market.

Profit forecast and investment suggestions: from 2022 to 2024, the company's operating income is estimated to be 13.23,25.74 and 3.797 billion yuan respectively, and the return net profit is 1.27,2.60 and 389 million yuan respectively, corresponding to PE 56-27-18 times.

Risk hints: the promotion of power exchange is not as expected, the pattern of inter-industry competition deteriorates, and the development of new energy industry.