Sodium-Electric signed a batch purchase and sale contract, and the business layout continues to improve
The company announced that it has signed a purchase and sales framework contract with Shanghai Hirano for a total volume of not less than 1.5 GWh, which will be delivered in batches from May 2024 to December 2026, mainly in the fields of well-known electric forklifts, low-speed vehicles, and functional vehicles around the world. Due to increased competition in the energy storage business, we lowered the company's 2024-2025 net profit forecast to 6.2 and 780 million yuan (originally 11.3 billion yuan and 17.10 billion yuan), and added 2026 net profit forecast to 1.14 billion yuan. EPS for 2024-2026 is 0.6, 0.7, and 1.0 yuan respectively, corresponding PE is 18.9, 15.0, and 10.4 times. Considering that Haisida is expected to use sodium electricity to overtake the curve. At the same time, the company is expected to use sodium electricity to take over the curve. Fully benefit from 5.5G industry trends and maintain a “buy” rating.
The company's sodium electricity business is progressing smoothly, and it is expected that it will overtake cars in curves
The company has strong endowments in sodium electricity resources and leading product performance. The 80Ah square sodium electric Xingyao II of Haishida Power has taken the lead in supporting household storage products. The 70Ah square sodium electric Xingyao I has been successfully used in small power markets such as electric forklifts and golf carts. In 2024, it has signed a batch purchase and sale contract to enter batching, becoming the first large-scale sodium battery company in China, and is expected to overtake cars in the future.
Production and sales of modified plastics are growing steadily, and the basic market business is stable
Due to the demand for lightweight automobiles, the amount of modified plastic used for domestic bicycles increased from 120 kg in 2016 to 160 kg in 2020, but there is still a lot of room for improvement between 230 kg and the European average of 330 kg in Germany, and it is expected that the trend of steady improvement will continue in the future. Benefiting from the increasing use of modified plastics in the industry and the trend of domestic substitution brought about by domestic car manufacturers increasing their share of sales, the company's production and sales have maintained steady growth.
The company is a pioneer in domestic LCP replacement. The entire industry chain layout is expected to fully enjoy the industry dividends. The company is the first domestic supplier of LCP materials, and the only company in the world that connects the LCP resin synthesis, modification, film, and fiber industry chain. In the batch supply of the company's LCP modified materials to major domestic and foreign customers, the fiber has been approved by international customers and has been tested and approved by downstream customers. It is expected that it can fully enjoy the industrialization dividends of LCP film.
Risk warning: LCP's business expansion falls short of expectations, and increased competition is at risk of declining profitability.