Events:
On January 18, the company issued a performance forecast for 2020, which is expected to achieve an operating income of RMB 8.05-820 million, an increase of 137.4%-141.8% over the same period last year. The net profit of homing is 1300-18 million yuan, and the 19-year net profit is-82.03 million yuan. the net profit of homing in 2020 will be turned from deficit to profit. On March 2, the company announced the signing of the "medium-and long-term (2021-2025) Strategic Cooperation Agreement" with Ganfeng Lithium. The company will cooperate with Ganfeng Lithium and his subsidiaries to carry out comprehensive cooperation and resource sharing in new energy batteries, communication base station energy storage, data center energy storage and battery recycling projects, so as to achieve mutual benefit and win-win results.
Our comments are as follows:
1. Expand the market + customer recognition, and turn the net profit into profit in 2020.
The company achieved high year-on-year revenue growth in 2020 and turned its net profit from loss to profit, mainly due to 1) under the unfavorable environment of the global COVID-19 epidemic, the company actively grasped the historical opportunity of domestic 5G new infrastructure and the advantage of international customer resources. expand domestic and foreign markets, at the same time, the company's domestic and international orders continue to increase, and operating income increased by 100% over the same period last year. 2) benefiting from the improvement of the value of the company's products and customer recognition, the company's profitability has been gradually improved.
2. Data center opportunities are constant, and network energy experts dance at the bottom.
In 2020, China officially entered the first year of 5G commercialization. with the gradual commercial use of 5G, the existing base station network construction methods have shown some problems, such as the difficulty of base station location. Traditional access network architecture will be based on 5G networking base station construction mode will evolve from D-RAN architecture to C-RAN architecture. Under this framework, the centralized deployment of BBU equipment will greatly reduce the construction of the base station computer room, and the power supply, battery, air conditioning and other supporting facilities of the computer room will also be greatly improved.
In addition, the diversification of market demand not only provides more space for the development of the data center market, but also puts forward higher requirements for the technical level and service awareness of the data center service providers.
Thanks to the large-scale construction of 5G and data center under the background of new infrastructure, the company's wireless network energy products and data center products have a high prosperity in the new infrastructure construction cycle.
3. Under the vision of "carbon neutralization", the application of new energy batteries in communications and data centers is expected in the future.
On September 22, 2020, the Chinese government proposed at the 75th session of the United Nations General Assembly: "China will increase its national independent contribution, adopt stronger policies and measures, and strive to reach a peak in carbon dioxide emissions by 2030. Strive to achieve carbon neutrality by 2060." This time, the company signed a "Strategic Cooperation Agreement" with Ganfeng Lithium to carry out comprehensive cooperation and resource sharing in new energy battery, communication base station energy storage, data center energy storage and battery recycling projects. it will help to promote the healthy and sustainable development of the application of new energy batteries in communications and data centers. This cooperation will have a positive impact on the strategic layout of the company in the field of global communication energy storage, enhance the company's market position and influence in the field of communication energy storage, and actively respond to the goal of "carbon neutralization", which is expected to fully benefit in the future.
Profit forecast and investment advice:
With the new infrastructure setting the tone of the 5G network and data center market, the company's network energy products are expected to form a trend of sustained and rapid growth; under the "carbon neutral" vision, the company continues to explore the application of new energy batteries in communications and data centers. Profitability is expected to be further improved. According to the performance forecast, the company continued to invest in R & D and market for 20 years, resulting in an increase in costs; affected by the COVID-19 epidemic in Europe, the expansion and implementation of the company's overseas subsidiary projects were delayed, resulting in the subsidiary's performance falling short of expectations. Adjust the 20-22 year net profit of the company to 0.18,1.13 and 218 million yuan (the original value is 0.40,1.48 and 227 million yuan), corresponding to 27 times PE in 21 years, and maintain the "buy" rating.
Risk hint: industry risk caused by macroeconomic slowdown, new product research and development falling short of market expectations, market demand fluctuation risk, overseas market operating risk, performance forecast for the company's preliminary calculation of the actual performance shall be based on the annual report.
