Incidents:
On January 19, 2024, the company released the 2023 performance forecast. In 2023, the company achieved net profit of 168-191 million yuan, an increase of 31.44-49.43% over the same period of the previous year; realized net profit of 155-178 million yuan without return to mother, an increase of 47.02-68.84% over the same period of the previous year.
The energy storage temperature control business has grown dramatically, and performance continues to improve rapidly:
Throughout 2023, the company closely focuses on established development strategies and business goals, and is committed to providing customers with system solutions in the field of industrial temperature control, proactively implementing cost reduction and efficiency, optimizing internal management measures, continuously increasing investment in R&D, promoting capacity building, deepening and improving market services, seizing market opportunities, and further enhancing the company's overall competitiveness and product market share. The company's business continued to grow, especially the sharp increase in the energy storage temperature control business, leading to rapid growth in the company's operating income and net profit. In 2023, the company achieved net profit of 168-191 million yuan, a year-on-year increase of 31.44-49.43%. The impact of the company's non-recurring profit and loss on net profit in 2023 was approximately 13 million yuan, mainly due to government subsidies and cash management income from idle funds. In 2023, the company achieved net profit of 155-178 million yuan after deduction, an increase of 47.02-68.84% over the same period last year.
Deeply involved in the energy storage temperature control industry and won the “2023 Excellent Supplier” award from the Ningde Era:
According to the company's announcement, with the development of the “double carbon” target, the energy storage industry has ushered in rapid and continuous growth. With years of technology accumulation, the company already has strong R&D strength and large production capacity to match customers in the energy storage field with relevant liquid cooling and air cooling products. In the future, it will further expand the energy storage temperature control product market through comprehensive advantages such as precise temperature control, high reliability, high safety, and temperature uniformity. At the same time, as liquid cooling temperature control products gradually became a trend and the proportion gradually increased, the company's products benefit from liquid cooling temperature control advantages accumulated in the CNC equipment and power electronics industries and are used in various energy storage temperature control scenarios. According to the company's official account, on December 29, Ningde Times New Energy Technology Co., Ltd. held the 2023 Supplier Conference with the theme of “Zero Carbon New Era, Ningjuxin Power” in Ningde, Fujian, to commend partners who have made outstanding contributions to the high-quality development of the Ningde Era in 2023. At the conference, the company won the “2023 Excellent Supplier” award.
Strong technical strength and high quality customer resources:
As a comprehensive service provider for overall solutions in the field of industrial temperature control, the company technically has the characteristics of high reliability, high-precision temperature control, and high energy efficiency in harsh environments. At the same time, the company has large-scale advantages in production and supply chain; based on mature experience in various customized solutions and self-made R&D capabilities for key components and software, it has formed the advantage of rapid response in product iteration and product delivery. After years of hard work, the company has become an industrial temperature control solution service provider across industries, with temperature control of CNC equipment and power electronic devices as its core business, and has accumulated stable and excellent domestic industrial customers such as Neway CNC (688697), Haitian Precision (601882), German EMAG Group (EMAG), Zhejiang Heideman (688577), Nidec (Nidec), Siyuan Electric (002028), Sifang Co., Ltd. (601126), TBEA (600089), Henan Xuji Power Electronics Co., Ltd. In the field of temperature control, it has One of the major players in terms of business scale and product coverage.
Investment advice:
The company is a leading domestic supplier of industrial temperature control equipment, and business sectors such as energy storage and semiconductors are rapidly expanding. We expect the company's revenue for 2023-2025 to be 1,569/22.98/3.186 billion yuan, up 55.7%/46.4%/38.7% year on year; net profit to mother will be 1.88/2.80/ 392 million yuan, respectively, up 46.9%/49.0%/40.1% year on year; corresponding EPS of 1.11/1.66/2.33 yuan, respectively. We gave the company a target price of 40.00 yuan for 6 months, which is equivalent to 24 times PE in 2024, maintaining a “buy-A” investment rating.
Risk warning: macroeconomic and downstream industry fluctuations; increased market competition; fluctuating raw material prices; product substitution; risk of new business development falling short of expectations.