Company highlights: Sanhui Electric main business for watt-hour meter verification product R & D and production, strategic layout of energy storage business since March, the introduction of Kelu Electronics former senior energy storage team, recent large storage cooperation agreements and orders have been signed one after another, and in July industrial and commercial storage track, customer resources are of high quality, the company's performance may have high flexibility.
Watt-hour meter verification device head enterprise. Sanhui Electric was founded in 1996, focusing on the R & D and production of watt-hour meter verification equipment. 2012 company watt-hour meter standards and calibration equipment market share first. Since then, relying on the core technology of watt-hour meter verification, the company extended the product line, entered the field of transformer in 2003 and entered the field of power consumption information collection system in 2009. The actual controller of the company is Mr. Hu Kun, through Shanghai Changpeng and Shanghai Changgeng holding company about 5.30%. In 2022, the company's revenue and performance were 1.950.13 billion yuan.
Industry: the renewal demand drives the steady growth of domestic electricity meters and the rapid growth of global energy storage scale.
1) Meter testing: the domestic demand for watt-hour meters is mainly updated and replaced, and the company's main business income is expected to be stable. We estimate that the domestic market space for smart meters will exceed 35 billion in 2025, and it is estimated that the number of domestic meter bids will be about 3.05% CAGR from 2023 to 2025. The company's main business is expected to be sound. 2) Energy storage industry: the permeability of scenery is increasing, and the scale of global energy storage is growing rapidly. Domestic: CNESA predicts that in conservative scenarios, the domestic energy storage scale will reach 53.3% in 2022-26, and the cumulative scale in 2026 will reach 79.5GW in ideal scenarios. Us: the world's largest energy storage market, accounting for 34% of the world's new energy storage in 2021. The IRA bill further increases energy storage subsidies and extends the duration of subsidies, which is expected to accelerate the growth of energy storage scale in the United States.
Investment highlights: strategic layout of energy storage business, intensive landing of orders is expected to bring performance flexibility.
Highlight one: strategic layout of energy storage business, the introduction of Kelu Electronics senior energy storage team. In March, the company set up a joint venture Sanhui Energy, with a 56% stake, and introduced the former senior energy storage team of Kelu Electronics in April to achieve full self-research and self-supply of core components such as BMS, PCS, EMS and so on.
Highlight 2: energy storage cooperation agreements have been signed, orders are expected to grow rapidly. In June, Sanhui Energy signed an energy storage equipment supply contract with Xu Ji Electric at a price of 21.2409 million yuan; signed a strategic cooperation agreement on cell supply with Penghui Energy; and signed a "Strategic Cooperation Framework Agreement" with China Electric Power Construction East China Institute. It is expected that the subsequent landing of the company's energy storage orders will contribute to the company's performance flexibility.
Highlight 3: the layout of industrial and commercial storage, the outbreak of demand can be expected. In July, Sanhui Energy launched an all-in-one industrial and commercial storage machine and signed an 20MWh industrial and commercial storage order with Zhejiang Hongxi. Since the beginning of the year, the economy of industrial and commercial storage projects has been greatly improved after the price reduction of lithium carbonate, and the outbreak of demand is expected. Relying on the superior customer resources in Zhejiang Province, the scale of industrial and commercial storage orders is expected to grow rapidly.
Profit forecast and investment advice: the company's 2023-2025 net return profit is expected to be 0.25pm, up 92.2% and 262.2%, with an increase of 35.1%. Coverage for the first time, giving a "overweight" rating.
Risk tips: domestic and foreign electricity meter demand is lower than expected, raw material prices rise, energy storage product demand is lower than expected, forecast deviation and valuation risk.