The traditional main business operates steadily and enters the major customer supply system. Kechuangxinyuan insists on the development direction of "application and development of polymer materials". The business field involves the communications, power and automobile industries. It mainly deals with polymer materials products with functional characteristics, such as sealing and barrier, waterproof and anticorrosion, insulation and fire prevention. The revenue and return net profit in 2020 are 307 million yuan and 27 million yuan respectively. In the field of communications, the company cooperates well with major customers such as Huawei, ZTE, China Mobile Limited and China Unicom, and its sales to operators are rising rapidly, with revenue of 28 million yuan in 2020, an increase of 90.8% over the same period last year. In the electric power field, the company's insulation and waterproof tape and other products are widely used in the State Grid, Southern Power Grid and other customers. The sales revenue of electric power business in 2020 was 103 million yuan, an increase of 100.46% over the same period last year. With the steady development of China's communications and power industry, the company is expected to continue to benefit.

Subsidiary Ruitaike expands liquid-cooled plate, layout power battery and energy storage thermal management. The subsidiary Ruitaike, founded in 2004, is committed to the innovation and development of new refrigeration technology. The company's revenue in 2020 is 110 million yuan. Due to the outbreak of demand for new energy and energy storage liquid-cooled plates, the company has timely expanded production, adding a brazing liquid-cooled plate for power batteries (estimated production capacity of 800000 sets / year) and an inflatable liquid-cooled plate for energy storage (estimated production capacity of 1.5 million sets / year). The company expects a total annual output value of about 800 million yuan. With the gradual increase in the penetration rate of new energy vehicles, according to the Federation of passengers, from January to July, the wholesale and retail sales of new energy passenger vehicles were 1.339 million and 1.229 million respectively, up 227.4% and 210.2% respectively over the same period last year. The domestic retail penetration rate of new energy vehicles reached 14.8% in July, significantly higher than the 5.8% penetration rate in 2020. At the same time, both the power generation side and the user side energy storage have ushered in a significant favorable policy. According to CNESA, the ideal scenario of electrochemical energy storage will reach 55.9GWDO in 2025 and the CAGR will be 76.43% in 2020-2025. Compared with the traditional air-cooled heat dissipation, the liquid-cooled heat dissipation system is small, efficient and more reliable, and has been gradually recognized by the market. After the two production lines are put into production, Ruitaike will become one of the few domestic manufacturers that can simultaneously produce inflatable liquid-cooled plates for energy storage systems, inflatable liquid-cooled plates for power batteries of new energy vehicles, and brazed liquid-cooled plates for power batteries of new energy vehicles. Ritak is also one of the few manufacturers that can solve the problem of flatness of large-size liquid-cooled plates. To sum up, whether the new energy vehicles with rapidly increasing permeability or the electrochemical energy storage with high growth rate and high development, there is a high demand for battery thermal management system. We believe that, as the core component of battery thermal management, liquid-cooled plate is the "rigid demand" of new energy vehicles and energy storage systems. It spans two high-prosperity races and has a broad market space.

Ruitaike has entered the supplier system of Ningde era and will grow together in the future. In 2020, Ruitaike quickly cut into the field of new energy vehicles and became the second-class supplier of Ningde era. The company carried out qualification audit and quality verification in strict accordance with the supplier control system and process of Ningde era, and provided inflatable liquid-cooled plate products to Ningde era. The revenue of this product is 7.5141 million yuan in 2020. With the expansion of production line, the quantity is expected. At the same time, Ruitaike strengthens its R & D cooperation with customers while consolidating the existing core technology. In the process of promoting new projects / technologies, Ruitaike keeps up with customers'R & D progress, communicates closely with customers, and effectively improves the overall R & D efficiency and R & D achievement conversion rate.

Rely on financial capital, involved in the semiconductor material industry. According to the company's development plan, Kechuang Xinyuan, a strategic shareholder of Xing Orange Capital, makes full use of the linkage basis of the company's existing products and channels to give full play to the industrial advantages of Xing Orange Capital in the layout of the semiconductor industry chain. Through epitaxial mergers and acquisitions depth layout of semiconductor materials industry. Ke Chuanyuan has invested 3.37% of Anhui Microcore Changjiang Semiconductor Materials Co., Ltd., starting the layout of semiconductor materials. At present, the microcore Yangtze River silicon carbide substrate project has been capped and can produce 120000 6-inch silicon carbide wafers per year.

Investment advice:

While adhering to the main business, Kechuangxinyuan deeply distributes liquid-cooled plate products. With the rapid development of downstream new energy vehicles and energy storage, the company's performance is expected to further improve, and through capital operation, it will be involved in the semiconductor materials industry and can be expected in the future. give a buy rating. We estimate that the operating income of the company from 2021 to 2023 is 515 million yuan, 1.233 billion yuan and 1.373 billion yuan respectively, and the net profit of returning mother is 60 million yuan, 130 million yuan and 210 million yuan respectively, corresponding to 73 times, 35 times and 22 times of PE in 2021-2023.

Risk hint: downstream demand is declining; new project schedule is not as expected