We predict that the demand for lithium batteries will continue to rise in the future, the company actively layout lithium battery structures, the acquisition of subsidiary Fujian Jiaxin cut into the Ningde era supply chain, the future can be expected.

Deep ploughing automotive mold for nearly 20 years, into the field of lithium battery structure. Ningbo founder is a national key high-tech enterprise, its main products include automotive injection moulds, plastic parts and accessories, lithium battery structural components, downstream covering front-line car enterprises and lithium battery manufacturers. In 2022, the operating income was 780 million yuan, an increase of 11.22% over the same period last year, of which the lithium battery structure business was opened in September, with an income of 30.46 million yuan. The company is changing from single mold manufacturing to "mold + new energy" dual-core mode.

The development of new energy vehicles is hot, and the channels of intelligent devices are gradually spread out. In 2022, there are 10.52 million new energy vehicles in the world, an increase of 66.7% over the same period last year. The demand of tram enterprises for automobile moulds is growing rapidly. The company's high value-added, high-quality smart equipment products were spun off from the traditional mold business in 2021, and its revenue reached 63.45 million in 2022, an increase of 399.61% over the same period last year. The channel deployment will be gradually improved in 2023, and the product is expected to be gradually expanded.

The acquisition of Fujian Jiaxin cuts into the supply chain of lithium battery structures in Ningde era, opening the second curve. Lithium battery components are known as the "fifth largest raw material" for lithium batteries. GGII expects global energy storage battery shipments to exceed 200GWh in 2023, while 17 major power battery manufacturers plan to expand production to 5868GWh in 2025. The company's accumulation of stamping technology can be applied to the production of structural parts to ensure the yield of products. The company enters Ningde supply chain through Fujian Jiaxin. Fujian Jiaxin is a supplier of Ningde era, with revenue of 101 million yuan in 2022, an increase of 68.56% over the same period last year. It is expected that the structural parts plate will bring considerable revenue for the company in the future.

Investment suggestion: Ningbo founder is a domestic high-quality automobile mold manufacturer with excellent production line and unique technical advantages. At the same time, we will actively develop battery structure technology and enter the supply chain of lithium battery manufacturers such as Ningde era. It is estimated that the 23-25 net profit of the company will be RMB 0.53 Universe 0.81 billion, yoy 201%, yoy 52%, 25%, net interest 6%, 7%, 7%, 0.39, 0.59, 0.73, respectively, and the current market value corresponding to PE is 55.9, 44.8 times. Coverage for the first time, giving "overweight" rating

Risk tips: the cost of raw materials is higher than expected, the product permeability is lower than expected, and the downstream installation speed and demand are lower than expected.