Global power tool drill clamp head faucet. Shandong Weida is an invisible champion in the power tools and accessories industry. With the expansion of its business scope, its business has been further extended to new energy vehicles for power stations, intelligent equipment manufacturing, CNC machine tools and so on. The company ranks first in the world in terms of shipments of power tool drill chuck products for more than 20 years, with a global market share of about 45%.
The proposed non-public offering of shares to expand production capacity. The company issued a pre-plan for the non-public offering of A-shares in 2020, which intends to raise 200 million yuan for the projects of "expanding the automatic assembly workshop of intelligent new energy energy storage power supply" and "new energy energy storage power research and development center". At present, the company has formed an annual production capacity of 9.4 million sets of new energy lithium battery packs. This capacity expansion will help the company to break through the capacity bottleneck, optimize the product line and enjoy the development opportunities of power tools, garden tools, electric bicycles, electric scooters, children's toys and other industries on the basis of improving the business of high-end customers of existing power tools, such as Bosch, Mudda, Black & Deck, TTI, etc.
The wind outlet of the power exchange industry is deeply bound with Ulai. The energy supply mode of new energy electric vehicle is mainly charging mode and power exchange mode, among which, the current charging mode is the mainstream of energy supply, although the power exchange mode has been developed for many years, from the market acceptance, industrial chain coordination, application ratio, it is still in its infancy. According to our estimates, it is estimated that by 2025, the domestic demand for new power exchange equipment will reach 6 billion yuan. Considering the aggressive production expansion plans of the major players, the actual construction volume is expected to greatly exceed the model calculation. By 2025, Xilai plans to deploy more than 4000 power stations worldwide, of which more than 700 are expected by the end of 2021, and more than 600 new power stations are expected to be added each year from 2022 to 2025. At the same time, Weilai plans to deploy a total of about 1000 power stations outside the Chinese market by 2025. As a supplier of power exchange equipment deeply bound with Weilai, the company will fully benefit.
Power tool accessories have three core advantages. Shandong Weida's core competitiveness products are drill chucks for power tools. in the process of continuously strengthening the dominant position of the core business, based on the existing high-quality head customer resources, it has been gradually extended to other accessories of power tools, including but not limited to precision casting, powder metallurgy, electric switches, battery packs, saw blades and so on. The company's three core advantages include: (a) deeply binding leading customers: it has the highest customer base of power tools in the world, including Stanley Batek, Chuangke, Bosch, Pastoral, Matebao, etc., with business spanning Europe and North America, accounting for about 50% and 70% of the world's main consumer market for power tools. (B) backbone and extension: at the beginning of its establishment, the company focused on drilling chucks for power tools.
Around the initial main business, based on the high stickiness and cooperation with customers, the company continues to expand the supporting scope, forming a trend of multi-business branches to thrive with drilling chucks as the trunk. (C) Industry growth attributes.
Investment suggestion: it is estimated that the EPS of the company from 2021 to 2023 is 0.8,1.12,1.43 yuan respectively, and the price-to-earnings ratio of the corresponding share price is 17 times, 12 times and 10 times respectively, and the "buy" rating is given for the first time.
Risk hint: the price of raw materials has risen; the breakthrough of new products has not reached expectations; and the production of new capacity has been lower than expected.
