I. Overview of events
On August 5, the company announced that it had received 296 million yuan of purchase orders from Ningde Times and its subsidiaries. Since January 1, 2021, the total amount of daily operation contracts signed with Ningde Times and its holding subsidiaries has reached 424 million yuan.
II. Analysis and judgment
Since May, the company has received a total of 296 million yuan in Ningde era purchase orders, accounting for 51.7% of the company's 2020 revenue, of which the purchase order for chemical component equipment reached 142 million yuan. Automation equipment and testing equipment and other three purchase orders, a total of 154 million yuan The cumulative purchase orders for the whole year and the Ningde era have reached 424 million yuan, which is 1.86 times the sales income of the Ningde era in 2020. the high growth of orders is expected.
The company won the order of the post-stage chemical sub-capacity equipment in the Ningde era, the company ploughed into the testing business, gradually gained customer recognition around the expansion of the latter part of the equipment, and after opening the latter part of the bulk supply of equipment, it is expected to further increase the share of existing customers and expand new customers, and the formation of sub-capacity equipment is expected to become one of the core growth points of the company's revenue. In addition, the company's automation equipment and battery testing equipment are also the core equipment in the latter part of the equipment, and the company is expected to gradually expand production with the new round of production expansion of customers such as Ningde Times and BYD.
Deep ploughing battery testing, active layout of energy storage related business
The company ploughs the battery testing industry, has the testing business of small consumer batteries and power batteries, and successfully expands the charge and discharge testing equipment of power battery cells, and enters the equipment link in the later stage of battery production. In addition, the company has also actively developed businesses such as PCS, charging piles and intelligent power station control systems, and cooperated with downstream leading customers to promote products such as energy storage power stations with testing capabilities.
In view of the adjustment of the peak-valley electricity price difference, the NDRC gives the energy storage business stronger economy and drives the development of the energy storage industry from the policy side; the release of sodium batteries in Ningde era, through the development of low-cost batteries, from the technical level to solve the battery cost requirements of energy storage development. We believe that in the medium and long term, the main drivers on the revenue side of the company include: 1) the high growth of orders for lithium battery composition and automatic assembly equipment, 2) the growth of energy storage-related business, and 3) the development of small battery testing business.
III. Investment suggestions
It is estimated that from 2021 to 2023, the company's operating income will be 890,650,2679 million yuan, and the net profit of returning to its mother will be 1.18Universe 226Universe 316 million yuan. The current stock price corresponding to PE is 69-36-26 times. Taking into account the high growth downstream, the overlay company's customer structure is high-quality, the current order is full, the overall valuation level of the industry is more than 50 times, and the company's PEG is less than 1, the valuation is reasonable, it can continue to be bullish and maintain the "recommended" rating.
Fourth, risk tips:
Sales of new energy vehicles fell short of expectations, the expansion of the energy storage industry fell short of expectations, and competition in the lithium-ion equipment industry intensified.