Event
The company announced on the evening of November 28 that Corey New Energy, a wholly owned subsidiary of Corey Technology, intends to acquire 100% equity of Dingli Intelligence with its own or self-raised funds, with a transfer price of 276.8 million yuan.
Brief comment
The proposed acquisition of lithium power equipment company fully intelligent, to the gambling association to demonstrate the performance growth confidence acquisition method: the company's wholly-owned subsidiary Corey new energy plans to acquire 100% equity of Dingli intelligence with its own or self-raised funds of 276.8 million yuan.
Pricing: the shares of the company that won the bid in this transaction are priced differently, in which the other party Zeng Ailiang, Liang Hongyun and Jin Heng Hengyuan hold a total of 42% of the shares in Dingli Intelligence. For gambling shares, the consideration for the equity transaction is 126 million yuan. The other parties, Huang Ming, Jin Heng Hengyuan, Cai Donghui, Yongcheng II, Hongshun Investment and Xu Xiaoju, together hold 58% of the equity of Dingli Intelligence, which is a non-gambling equity with a consideration of 150.8 million yuan.
Gambling conditions: the net profit after deducting non-recurring profit and loss in 2021-2024 is 20 million yuan, 25 million yuan, 35 million yuan and 40 million yuan respectively.
The next sub-section of the lithium equipment plate, strengthen the business layout, improve performance flexibility and intelligently focus on the post-processing process of lithium-ion battery production. The products include formation / separation equipment, voltage internal resistance testing equipment, sorting equipment and other core equipment. It is one of the few suppliers in the industry that can provide a full range of lithium battery post-processing solutions for all types of power batteries (cylindrical, soft package, square lithium battery) at the same time.
In 2020, the revenue is 182 million yuan, the net profit is 18 million yuan, and the net interest rate is 10.16%. Dingli Smart significantly increased new orders in 2021, and order delivery is expected to contribute to performance increments in the future. Its main customers include CATL, Funeng, Guoxuan, Yiwei LiNeng, Tafel, Murata, Japan and so on.
We believe that the acquisition of Dingli Intelligence is an important measure for Corey's layout in the lithium power field, and this acquisition will help to complement the company's overall solution capability in the latter part of the lithium battery and effectively improve the layout of its new energy equipment business. next year, it is expected to continue rapid growth, which will lead to the overall performance flexibility; at the same time, the company acquisition can help the company to rapidly expand the scale of production capacity and improve delivery capacity.
New energy business is the fastest growing pole, continue to pay attention to lithium power business development, the company's new energy business is located in the lithium manufacturing equipment industry solution provider, focusing on the leading enterprises in the new energy battery industry, is one of the leading suppliers of bare cell production and cell assembly segment equipment. According to the 3n strategy proposed by the company in 2020, the new energy sector business is expected to grow to 3 billion in three to five years. Through this acquisition, the company will integrate the post-processing process business of lithium manufacturing equipment industry and effectively improve its new energy business layout. At the same time, the company continues to increase investment in technology research and development, and constantly enhance the market competitiveness of the new energy lithium equipment business. At present, the company has made good progress in order delivery, new product development, new customers and business development.
The company began its own research and development of lamination technology in 2016, and achieved mass production of consumer lithium electric laminators in 2018, providing customers with high-quality consumer lamination equipment with excellent performance in terms of accuracy and equipment reliability. At present, the company's stacking machine has expanded from the field of consumer lithium to the field of power lithium. On August 27, the company announced that it had won the bid for the honeycomb energy cutting and stacking all-in-one machine project, and the winning price was 176 million yuan. We believe that, as the core process of lithium power production, the continuous iteration of lamination equipment in the industry is expected to promote the gradual improvement of lamination process permeability, and it is recommended that we continue to pay attention to the company's product delivery and new customer development.
Investment suggestion: Corey Technology is a very excellent non-standard automation equipment company, 2022 power lithium equipment, mobile terminal (AR/VR) equipment business is worth looking forward to. Excluding this acquisition, the estimated net profit from 2021 to 2023 is 2.53,3.35 and 419 million yuan respectively, which is-13.7%, + 32.5% and + 24.9% respectively compared with the same period last year. Considering this acquisition and assuming that the table is consolidated from 2021, the estimated net profit from 2021 to 2023 is 2.73,3.60 and 454 million yuan respectively, which is-6.84%, 31.97% and 25.92% respectively compared with the same period last year. The corresponding EPS is 0.66,0.88 and 1.10 yuan per share, and the corresponding PE is 43.6,33.0 and 26.2x respectively. The target price is 43.76 yuan, corresponding to 50 times PE in 2022, maintaining the "buy" rating.
Risk factors: downstream AR/VR equipment demand is lower than expected, lithium equipment business pull down the overall gross profit margin.