Main points of investment:
The double main business of "sawing + power supply" will be formed in 2022. Taijia shares was founded in 2003, initially engaged in sawing materials; in 2006, the company's first bimetal band saw blade production line was officially put into production, realizing the extension of the industrial chain; in 2015, the company implemented an annual output of 200000 meters of cemented carbide band saw blade project. fill the gap of high-end products in the domestic band saw blade industry; listed on the Shenzhen Stock Exchange in 2017 In 2022, in the year of strategic breakthrough, the basic pattern of the development of "sawing + power supply" was established through a series of capital operations through asset restructuring and the acquisition of Matterson. 1H23, the revenue of the company's power supply and sawing business is 623 million yuan and 322 million yuan respectively, accounting for 66% and 34% respectively.
608 million fund-raising projects expand the production capacity of sawing business and accelerate the business of energized power supply. The company plans to expand the scale of sawing capacity, give full play to the advantages of platinum Thai electronic technology and brand, and optimize the structure of power products. According to the company announcement, from 2021 to 2022, the capacity utilization rate of the company's sawing business is more than 90%, and the production capacity is tight. In 2023, the investment project plans to add 10 million meters of high-speed steel bimetal band saw blade production capacity, an increase of 36.5% over the current production capacity; cemented carbide band saw blade production capacity of 1 million meters, double the new production capacity; 7.2 million new photovoltaic optimizers, 1.26 million photovoltaic inverters, and 1.2 million energy storage converters.
New energy power business to achieve a 0-1 breakthrough, to create a full range of power business. 1H23's consumer electronics power, new energy power and other revenue accounted for 49.95% and 15.95%, respectively. The company cuts into the field of consumer electronics power through Luoding Yada, binds major customers Apple Inc, Huawei, etc., and actively develops high-power power industry opportunities to create a full-category power supply business. 1H23's sales revenue from new energy power and other power sources reached 151 million yuan, including 119 million yuan from new energy power sources and 42 million yuan from other power sources. As of 1H23, the company has an annual production capacity of 5.44 million photovoltaic optimizers and 1.03 million photovoltaic inverters; after the fund-raising project has reached full production, the company has a total capacity of 1264 million photovoltaic optimizers, 2.29 million photovoltaic inverters and 1.2 million energy storage converters per year.
Sawing business to "bimetal band saw blade domestic market share of 50%, foreign sales account for 50% of the company's sawing business sales"
For the development goal. 1) there is still room for improvement in domestic market share. At present, the sales volume of bimetal band saw blades in the company's saw blade business ranks first in China and the top three in the world, but the market share of the leading companies in the band saw blade industry in Europe, the United States, Japan and other mature markets are all more than 50%, and the company's domestic market share still has room to improve. 2) the global sales network has initially taken shape, and exports are expected to maintain a high growth rate.
The company began to export bimetal band saw blades in 2007, and was the first enterprise to achieve export. In 2022, the export sales of band saw blades were 189 million yuan, an increase of 66% over the same period last year, accounting for about 39% of domestic exports. As of 1H23, the company has an annual production capacity of 27.4 million meters for high-speed steel bimetal band saw blades and 880000 meters for cemented carbide band saw blades. After the fund-raising project reached full production, the company's total production capacity of high-speed steel bimetal band saw blades reached 3740 million meters per year, and cemented carbide band saw blades reached 1.88 million meters per year.
Investment analysis opinion: cover for the first time, give a "buy" rating. The projected operating income from 2023 to 2025 is 21,28,3.3 billion yuan, and the net profit is 1.6,2.8,340 million yuan. With reference to the company's average PE valuation of 19X in 2024, Taijia shares were given 19X PE, giving the company a "buy" rating compared to the current 22% increase.
Risk tips: 1, major customer business strategy change risk; 2, the future production capacity caused by insufficient orders can not digest the risk; 3, exchange rate fluctuation risk.