Camel Co., Ltd. is a leading automotive low voltage battery company. The company is currently the only enterprise with a national layout in the automotive low-voltage battery manufacturing and recycling business. The production capacity, sales volume and market share of the automotive low-voltage lead-acid battery industry have steadily ranked first in China. By the end of 2022, the company's domestic lead-acid battery production capacity was about 33 million KVAH/year, foreign lead-acid battery production capacity 2 million KVAH/year, and waste lead battery recycling capacity at home and abroad, and plans to continue optimizing the production capacity layout at home and abroad to enhance its leading edge.
According to the company's financial report, in 2022, the company achieved revenue of 13.4 billion yuan, +8% year on year, net profit of 470 million yuan, -43% year on year; 2023Q1 company achieved revenue of 3.3 billion yuan, +6% year on year, and net profit of 160 million yuan, +17% year on year.
12V lithium batteries will take the lead in a small number of applications in high-end new energy models. According to the company's annual report, European and American high-end NEV companies have potential demand for 12V lithium batteries in order to cope with the electronic, intelligent, and lightweight vehicles; leading domestic NEV companies have put forward higher performance requirements for low-voltage power supplies in order to enhance the intelligence of new energy vehicles and enhance the driving experience level.
Camel Co., Ltd. has also set up a low-voltage lithium battery business. According to the company's annual report, the company's products include 12V auxiliary batteries for new energy vehicles, 24V parking air conditioning batteries, 48V start/stop batteries, backup power supplies, etc. In 2022, the company mainly promoted the 12V/24V/48V low voltage platform business and completed 26 project targets for 16 companies.
In addition, the company has also deployed energy storage. The company's products include container industrial energy storage, household energy storage and portable energy storage products. They can be widely used on the power generation side, power grid side and electricity consumption side, and are used in scenarios such as peak adjustment, frequency modulation, peak cutting and filling valleys. The company's layout in the energy storage industry chain has covered energy storage cell manufacturing, BMS (battery management system) product development, EMS (energy management system) product development, integrated energy storage products, etc.
The company has the advantage of a multi-category product matrix. According to the company's annual report, Camel Co., Ltd. is a leading enterprise in the automotive low-voltage battery industry. The company has won a good reputation in the market for its low-voltage battery product quality, and has created a diverse and differentiated product matrix to meet the various product requirements of internal combustion engine models, pure electric models and other models.
Profit forecast and investment advice: We expect Camel Co., Ltd. to achieve revenue of 150/164/175 billion yuan in 2023/24/25, net profit of 86/13/16.1 billion yuan, EPS of 0.74/1.11/1.37 yuan, and the closing price on May 5, 2023 corresponding to 12.8/8.5/6.9x PE. Referring to comparable companies, the company was given 15-19x PE in 2023. The corresponding reasonable value range was 11.05-13.99 yuan. First coverage, giving it a “better than the market” rating.
Risk warning: Automobile sales fell short of expectations, and raw material prices have risen sharply.