Event: Xinyun Co., Ltd. issued a "notice on signing major contracts for day-to-day operations."
It is expected to accelerate the expansion of the business scale by achieving a breakthrough in the formation of sub-capacity equipment. In August, 2021, the company signed a contract with Ningde New Energy and Jiaocheng era for the supply of chemical capacity equipment with a contract amount of 142 million yuan. the signing of this contract marks the realization of production and large-scale production of chemical capacity equipment in the company. It is also an effective breakthrough for the company in the strategic customer market of lithium battery equipment. Since 2018, the company has actively moved from modules and battery pack testing equipment to the field of chemical separation equipment, and the implementation of this contract will expand the company's market share in the field of chemical separation equipment and further increase the company's share in the field of lithium battery testing equipment. Accelerate the expansion of the business scale of testing equipment.
Since the beginning of the year, it has signed a contract with Ningde totaling 424 million yuan, fully benefiting from the wave of lithium power expansion, and is expected to enter a high-speed development channel. Since January 1, 2021, the company has signed purchase orders with Ningde Times and its holding subsidiaries totaling 424 million yuan, accounting for 73.98% of the company's main business income. In the context of the transformation of new energy, lithium power leaders have laid out large-scale production expansion plans, and Ningde plans to invest nearly 100 billion yuan in capacity expansion. As the leader of lithium testing equipment growing with Ningde, the income from Ningde accounts for nearly 40%. In the future, equipment sales are expected to follow Ningde's capacity expansion to achieve rapid expansion.
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, around the Ningde battery industry layout of the user side and the grid side of the high-growth scarce high-quality target. Recently, the state has issued a number of energy storage support policies, among which the guidance on accelerating the Development of New Energy Storage proposes that by 2025, the new type of energy storage will be transformed from the initial stage of commercialization to large-scale development, the installed scale will exceed 30GW, and the demand for energy storage will be released. The launch of the notice on further improving the time-sharing electricity price mechanism is expected to widen the price gap between peak and valley, or improve the economy of energy storage, so as to stimulate the rapid development of energy storage demand on the side of users. In 2019, the company established the Times Nebula in the Ningde era, launched the integrated storage, charging and inspection power station business, and actively distributed the energy storage on the grid side and the user side. Under the resonance of the policy and the market, it is expected to enter a period of rapid development.
Profit forecast: from 2021 to 2023, the company is expected to achieve an income of 762 million yuan and a net profit of 1.443 billion yuan and a net profit of 1.01 billion yuan and 282 million yuan, corresponding to a PE of 81.0 pound, 40.5 pound and 28.8 yuan, maintaining a "buy" rating.
Risk hint: the development of the new energy vehicle industry is not as expected; the competition in the industry is intensified.