"sawing + power supply" two-wheel drive, sawing bibcock effect is significant

The company was founded in 2003 and has a long history. The company's first main business is metal processing sawing tool research and development, production, sales and metal sawing technical services, the main products are bimetal band saw blades. At present, the sales volume of bimetal band saw blades ranks first in China and in the top three in the world. Bimetal band saw blade is actually the "hand of craftsmen" in modern manufacturing industry, which has a wide range of applications, is less affected by the fluctuation of a single industry, and has a significant advantage of leading effect, which provides stable performance support for the company. The company completed the major asset reorganization of Platinum Electronics at the end of September 2022, realizing the double main business layout of "sawing + power supply".

Power business opens the second pole of the company's growth curve

At the end of September 2022, the company completed a major asset restructuring of Platinum Electronics, thus obtaining the controlling interests of Luoding Yada and Shenzhen Yada, quickly cutting into the consumer electronics power supply business, and relying on its advantages in technology, quality control and manufacturing process, rapid development and layout of new energy photovoltaic / energy storage power business, we judge that the cooperation between Yada Electronics (Luoding) and Huawei is progressing smoothly. The recovery of consumer electronics is imminent, and the production line of domestic brands has broken through. We judge that the power supply business of consumer electronics is expected to recover gradually in the second half of the year as the industry recovers, major customers launch new products and end inventory clearance. At the same time, with the improvement of concentration and brand development of the domestic smartphone industry, production capacity is gradually concentrated to several large leading manufacturers in the industry. We judge that the domestic mobile phone brand taking Huawei MATE60 as an example presents a breakthrough mode, and the domestic power contract factory is expected to benefit. In addition, the fast charge iterative upgrade is expected to increase the market sales of mobile phone chargers, while the unit price of mobile phone chargers increases rapidly.

Photovoltaic / energy storage power from zero to one, data center power ready to go

The company's photovoltaic / energy storage power products are mainly photovoltaic inverter, photovoltaic optimizer and energy storage converter, all of which are the core components of the photovoltaic system. Benefiting from the rapid increase of photovoltaic installed capacity, the demand for photovoltaic inverters increases. On the other hand, distributed photovoltaic supporting distributed energy storage has become a necessary move, which is expected to promote the improvement of energy storage converters. In addition, the company's data center power supply is ready to start, and the company is actively expanding its data center power business. Thanks to AIGC thin hair and the acceleration of the construction of China Intelligent Computing Center, the power supply of high-end servers in data centers is expected to grow rapidly. Huawei has become the second pole of global AI computing power, and domestic data center power is expected to benefit deeply. in addition, AI server power supply is expected to rise in volume and price in the future.

Investment suggestion

The company has a leading advantage in sawing and power supply, and will benefit from logic such as the leading effect of sawing business and the increase in the proportion of overseas business, consumer electronics rapid volume and energy storage, photovoltaic, data center power and other related factors. Give the company the 2023-2025 revenue forecast of 22.493,3634,4770 million yuan, give the company 2023-2025 return net profit forecast 1.58 million 2.83 hundred and seventy-one million yuan, give the company 2023-2025 EPS forecast 0.63 pound 1.12 billion 1.47 yuan. On October 25, 2023, the total market capitalization was 6.1 billion yuan, corresponding to the stock price of 24.05 yuan, corresponding to the PE of 38.3, 21.4, and 16.3 times, covering for the first time and given a buy rating.

Risk hint

The risk of international trade friction, the risk of fluctuation of raw material prices, the risk of relative concentration of customers, and the risk that the process is lower than expected.