Sodium and lithium together, embracing the era of energy storage

Since September 2022, the company's revenue and profits have grown rapidly. In the future, the company's heavy code energy storage track, the long-term planned energy storage capacity exceeds 30GWh, at the same time, the company has strong sodium power resource endowment, leading product performance, and is expected to overtake in the corner in the future. Considering the new equity incentive fees, we reduce the company's 2023-2024 return net profit forecast from 7.98,11.50 to 7.78, 1.131 billion yuan, and increase the 2025 return net profit forecast of 1.711 billion yuan. The corresponding share price PE is 18.2,12.5,8.3 times, and the 2023 valuation is lower than the average valuation of comparable companies. The company's modified plastics benefit from increased use of bicycles and domestic substitution, production and sales have increased steadily, and the subsidiary Haisida heavy code energy storage track has greatly expanded production. With sodium power, it is expected to achieve corner overtaking and maintain the "buy" rating.

The layout of the company's energy storage capacity is speeding up, and the batch of sodium electricity is progressing smoothly.

In 2023, the company successively announced a number of production expansion plans in Qidong, Liuyang and Zhuhai. In order to alleviate the capacity pressure, the company built a new Zhuhai factory 6GWh under the coordination of the State-owned assets Supervision and Administration Commission, which is expected to contribute output in 2024; long-term planning Liuyang plant 30GWh production capacity, product models focus on 280Ah high-capacity iron lithium and sodium ion batteries. The company has strong sodium power resource endowment and leading product performance, 80Ah square sodium star Ⅱ of Haishida Power supply has taken the lead in supporting household storage products, 70Ah square sodium star Ⅰ has been successfully applied in small power markets such as electric forklifts and golf carts, and is expected to be tested on a small scale in the second half of 2023 and mass production in 2024, which is expected to achieve corner overtaking.

The production and sales of modified plastics are growing steadily, and the downstream of power tools is expected to pick up.

Due to the lightweight demand for automobiles, the domestic consumption of bicycle modified plastics increased from 120kg in 2016 to 160kg in 2020, but there is still much room for improvement compared with the European and American average 230kg and German 330kg, and it is expected to continue to maintain a stable upward trend in the future. Benefiting from the increase in the amount of modified plastics in the industry and the domestic substitution trend brought about by the increase in the proportion of domestic car factory sales, the company's production and sales have maintained steady growth. Affected by consumer demand in 2022, global power tool shipments in 2022 were 470 million units, down 19.3% from the same period last year. Lithium batteries and other raw materials have been basically removed from storage in the first half of 2023, and the downstream boom is expected to pick up in the second half of the year.

Risk hint: increased competition leads to a decline in profitability risk, customer expansion is not as good as expected risk.