Core views:
To supply ABF, Pioneer Intelligence won the largest US lithium battery equipment order so far from a Chinese company.
According to Pioneer Smart's official WeChat account article, on March 18, Pioneer Smart and American battery manufacturer American Battery Factory (ABF) formally signed a global strategic cooperation agreement. According to the agreement, Pilot Intelligence will provide ABF with smart lithium battery production line services with a total target of 20 GWh. According to reports, this is the largest order for lithium battery equipment received by a Chinese company in the US so far. Wang Yanqing, Chairman of Pioneer Intelligence, and JimmyGE, CEO of ABF attended the signing ceremony.
Exclusive equipment supplier, providing complete line solutions for ABF. According to the official account article, Pilot Intelligence will become the only equipment supplier for ABF's first production line of the Gigafactory network project, providing ABF with a complete set of customized intelligent fully automated line solutions. Through the integration of key steps in the manufacturing process, Pilot Intelligence can design and verify customized battery product processes for ABF, achieve full product life cycle traceability, help ABF achieve the important goal of building a 20 GWh lithium battery gigafactory, and lay a solid foundation for building the first LFP gigafactory network in the US.
Leading technical strength to accelerate globalization. According to the official account article, at present, Pilot Intelligence has provided customers around the world with more than 120 complete lines, providing solutions for more than 2 TWh of smart battery factories around the world. At the same time, Pilot Intelligence continues to strengthen the local supply chain and immediate services of overseas subsidiaries.
Profit forecast and investment advice: The company's net profit for 2023-2025 is estimated to be RMB 32.16/ 40.40/ 5016 billion yuan, respectively. Referring to comparable companies, considering the company's leading position, we gave the company a PE valuation of 20 times the net profit due to mother in 2024, corresponding to a reasonable value of 51.59 yuan/share, maintaining a “buy” rating.
Risk warning: the risk of macroeconomic and downstream demand fluctuations; risk of bad debts in current accounts receivable; management risks caused by scale expansion.