Auto zero stamping mold veterans are ready to enter the new energy circuit. The company was founded in 2004 and began laying out automobile molds and stamping parts in 2010. Since 2012, it has entered the new energy circuit. Its main products include automobile molds and stamping parts, power battery trays, optical storage structural parts, etc., to achieve rapid development.
Downstream customers cover industries such as new energy vehicles, power batteries, energy storage and photovoltaic inverters, and communications. According to the company's performance forecast, it is expected to achieve net profit of 398 to 420 million yuan in 2023, an increase of 55.12% to 63.69% over the previous year.
Electric vehicles and optical storage are booming, and demand in the structural parts market is strong. The company's battery tray technology is mature. According to questions and answers from the company's investors, it has now received CTC-related sample orders. By 2025, the Ningde era is expected to achieve a continuous increase in the unilateral share of overseas markets, or drive the CTX battery tray penetration rate to continue to increase. The optical storage circuit boom continues, and it is expected that the trend of high energy storage installed capacity will not change. With the installed volume of energy storage systems, the company's structural parts business orders are expected to continue to be fulfilled.
Customers are high quality, orders are abundant, and the company benefits from new technology to accelerate growth. Downstream customers include leading companies in the field of new energy vehicles and photovoltaic energy storage, and the core customer business is developing rapidly; the company is the core supplier of the Ningde Era and will continue to benefit from the application of new technologies such as Kirin batteries. Furthermore, the company has cooperated with Huawei for many years, and the company's related parts business is expected to continue to benefit as Huawei's smart models are released in the future. According to the disclosure announcement that the company has obtained a letter of intent for the customer project, since 2022, the total amount of the company's bids/intended orders has been around 30 billion yuan. As the capacity utilization rate continues to increase, the company's orders are expected to be fulfilled at an accelerated pace.
Profit forecasting and investment advice. The company focuses on laying out new energy tracks, and its performance is expected to continue to grow as targeted orders for the project continue to be implemented. The company's revenue for 2023-2025 is estimated to be 62.2, 88.5 billion yuan, and 11.58 billion yuan, respectively, and the net profit to mother for 2023-2025 will be 3.95, 589 million yuan, and 795 million yuan, respectively. The company was given 15 times PE in 2024, corresponding to a reasonable value of 49.55 yuan/share, covered for the first time, and given a “buy” rating.
Risk warning. New energy vehicle sales and power battery sales fell short of expectations; market competition increased risk; risk of fluctuating raw material prices; risk of insufficient technological innovation capacity.