Main points of investment
Lithium testing equipment leader, expand energy storage and charging pile business
The company's main business includes equipment and product sales, testing services and other business forms, production and sales of lithium battery testing equipment, lithium battery intelligent manufacturing solutions, energy storage converters and charging piles. From 2019 to 2021, the company's revenue was 366 million yuan, 575 million yuan and 811 million yuan respectively, an increase of 20.75%, 57.24% and 41.02% respectively over the same period last year. The net profit of returning home was 3.5484 million yuan, 56.9964 million yuan and 7604.56 yuan respectively, an increase of-82.70%, 1506.25% and 33.42% respectively over the same period last year. Return to the mother of net profit-13.8652 million yuan, year-on-year profit to loss.
The product line of lithium battery rear equipment is rich, and the testing service is expected to contribute significantly. The company has a wide range of lithium battery equipment products, which can provide a full range of lithium battery testing product solutions from research and development to application. Through the establishment of subsidiary nebula testing, to downstream lithium battery enterprises to carry out testing services, from the traditional single equipment sales to the combination of sales and service business model transformation, help to enhance customer stickiness. The value of chemical sub-capacity accounts for up to 70% of the latter part of the equipment, and the company's chemical sub-capacity equipment was supplied in bulk in the first half of the year, marking the smooth landing of the company's large-scale product strategy. The company's products are located in the middle and high-end market, binding major customers to establish long-term cooperative relations. In 2021, the company signed daily business contracts with Ningde Times and its holding subsidiaries totaling 512 million yuan, accounting for 63.12% of the business income of that year.
Seize the opportunity of energy storage development, optical storage, charging and inspection to create the second growth curve in the field of energy storage, the company launched energy storage converter products and intelligent power station control system. The permeability of new energy vehicles continues to increase, giving rise to the demand for infrastructure construction of charging supporting facilities. At present, there is still a large gap in the ratio of vehicles to piles in our country.
In the field of charging piles, the company has launched a series of nebula DC charging piles, nebula shared household charging piles and other products and has gradually promoted sales. The company established the time Nebula in a joint venture with Ningde Times in 2019, and the company has a 10% stake in the time Nebula. The Times Nebula launched an optical storage, charging and inspection overcharging station, which supports up to 1000V voltage and builds a new ecology of charging service. The company provides products such as energy storage converter, DC/DC DC converter, fast charging pile, battery testing module and so on for overcharging stations. At present, the overcharging station has been built in Shanghai, Ningde, Fuzhou and other cities.
Profit forecast and valuation
Coverage for the first time, giving a "overweight" rating. The company is the leading supplier of lithium power equipment in China, and new businesses such as energy storage and charging piles are expected to contribute to performance increment. We estimate that the company's net profit from 2022 to 2024 will be 37 million yuan, 180 million yuan and 303 million yuan respectively, with year-on-year growth rates of-50.96%, 381.77% and 68.54%, respectively. From 2022 to 2024, the EPS was 0.25,1.22,2.05 yuan per share respectively, and the corresponding PE was 162,34,20 times respectively. We select Shangneng Electric, Shenghong shares and Trent, which are relatively similar in business, as comparable companies in the same industry. the average valuation of the comparable company in 2023 is 39 times, giving the company an average industry valuation of 39 times in 2023, corresponding to a target market capitalization of 7 billion yuan. corresponding to the current stock price up 15%, given the "overweight" rating.
Risk hint
Downstream demand is lower than expected; the risk of high customer concentration; the risk of rising raw material prices.