Policy + market two-wheel drive, the new energy vehicle industry opened the main wave of demand growth, lithium battery leaders have laid out large-scale production expansion plans, lithium battery testing equipment manufacturers ushered in a new high-speed growth pole. Europe and the United States continue to issue favorable policies to promote the transformation of electrification, and overseas markets are expected to usher in a new round of rapid growth. Domestic subsidies have declined moderately, but with the continuous launch of high-quality new energy vehicles on the market, the consumption potential has been deeply tapped. In the first half of 2021, the sales of new energy vehicles at home and abroad are growing rapidly, and we expect the annual sales to reach 5.4 million. The high production and sales of new energy vehicles has led to a rapid growth in the demand for power batteries, which is expected to reach 276GWh for the whole year. In this context, lithium faucets have laid out large-scale production expansion plans, in which Ningde plans to invest nearly 100 billion yuan in capacity expansion, battery testing equipment is expected to fully benefit.
Witness the great cause of CATL Power, rely on the main industrial chain of power batteries, provide core testing equipment and services, and build new business growth points. The company is the leader of lithium battery testing equipment, which has obvious advantages in the charge and discharge detection system of lithium battery pack (including chemical components), and is in a leading position in the market. At present, the company's largest customer is the Ningde era, accounting for nearly 40% of the revenue, and the company's business is expected to follow Ningde's capacity expansion to achieve rapid expansion in the future. In addition, relying on its technical advantages in battery testing equipment, the company established Nebula testing in 2018 to provide testing and certification services for customers' power battery products, helping customers to shorten the R & D cycle and reduce R & D costs. at present, the business mainly serves Ningde and its associated enterprises, and it is expected to export a new business model based on testing services to the whole industry in the future, building a new performance growth point of the company.
Energy storage accompanied by policy and market resonance, the industry has entered a period of rapid development, a joint venture with CATL time Nebula, deep ploughing energy storage, the layout of Ningde battery industry around the user side and power generation side of the high-growth scarce high-quality target. On July 15, 2021, the National Development and Reform Commission and the National Energy Administration issued the guidance on accelerating the Development of New Energy Storage. According to this "guidance", by 2025, the new type of energy storage will be transformed from the initial stage of commercialization to large-scale development, with an installed scale of more than 3000 kilowatts. This policy is expected to promote the domestic new type of energy storage installation to be greatly improved. In 2019, the company established the Times Nebula in conjunction with the Ningde era and launched the integrated storage, charging and inspection power station business. with the blessing of the energy storage policy, the installed demand may rise rapidly, and the business is expected to achieve rapid replication and expansion.
The quarterly performance is growing at a high speed, and the management inflection point has already appeared. In the first quarter of 2021, the company achieved an operating income of 120 million yuan, an increase of 64.91 percent over the same period last year, and a net profit of 20 million yuan belonging to shareholders of listed companies, an increase of 729.55 percent over the same period last year. The company achieved a gross sales margin of 57.55% in the first quarter, an increase in 16.4pcts compared with the same period last year. Under the background of the rapid growth of industry demand, the company has gradually come out of the trough, and the inflection point of operation has appeared.
Profit forecast: from 2021 to 2023, the company is expected to achieve an income of 762 million yuan, a net profit of 1.78 billion yuan, and a "buy" rating of 59.6 million, with a net profit of 1.78 million, corresponding to a PE of 59.6, 33.4, and 22.7, respectively.
Risk hint: the development of the new energy vehicle industry is not as expected; the competition in the industry is intensified.