Company profile
Li Yuanheng was founded in 2014, and the key technologies and sets of automatic assembly of lithium battery hot and cold pressing capacity and power battery core-making process independently developed and produced by Liyuan Heng in 2019 have been identified as being at the international advanced level and have become one of the leading lithium battery equipment suppliers in China. Up to now, the company has realized the full chain coverage of process intelligent equipment, automatic production line, intelligent warehousing and logistics, information products to digital factories.
The company's main business and financial analysis
With its own technology accumulation, the company continues to enrich the lithium product series, realizing the layout of the whole industry chain from special planes and integrated machines to local links and full-process production lines, and has the ability to deliver the whole line on a large scale. At present, the company has become a leading domestic lithium equipment company, with downstream Ningde Times, BYD, Guoxuan Hi-Tech and other well-known head manufacturers to establish a long-term and stable cooperative relationship. The operating income of 2022Q3 reached 2.935 billion yuan, an increase of 77.06% over the same period last year, and the net profit belonging to the parent company reached 283 million yuan, an increase of 80.72% over the same period last year.
Industry Analysis and Company competitive advantage Analysis
The core demand of domestic and foreign lithium battery market mainly comes from: 1) in terms of power batteries, we expect that the field of new energy vehicles will maintain a high bearing. By 2025, the domestic and global sales of new energy vehicles will reach 1400 and 24 million respectively, driving the installed capacity of domestic and global power batteries to 700 and 1300 GWH respectively. 2) in terms of domestic "new infrastructure"
Under the combined effect of policy and overseas demand, it is expected that the new installed capacity of domestic and global energy storage batteries will reach 80.1 and 212.8GWh respectively in 2025. Under the stimulation of market demand, lithium power manufacturers have increased capital expenditure and expanded production capacity one after another. Since 2022, there have been as many as 84 lithium power investment expansion projects, with a total amount of more than 842.7 billion yuan, and the announced capacity scale is about 2038GWh. at the same time, Ningde era and other domestic lithium power manufacturers accelerate overseas capacity layout. The new production capacity of lithium power manufacturers and the iterative updating of old production line equipment have provided abundant market demand for the lithium power equipment industry. We estimate that the domestic and global market size of lithium power equipment will reach 122.007 billion yuan and 212.86 billion yuan respectively in 2025.
Based on the deep accumulation of consumer lithium and continuous R & D investment in power batteries and other fields, Li Yuanheng has formed a rich lithium equipment pipeline and launched a number of integrated manufacturing equipment one after another, and the core indicators of some of the equipment are in the leading position in the industry. among them, the film production all-in-one machine, laser die-cutting all-in-one machine and chemical capacity all-in-one machine have excellent performance and have become one of the main sources of orders for the company. In November 2022, the total amount of orders on hand has exceeded 10 billion yuan, and sufficient orders have become a strong support for the company's future performance growth. At the same time, the company has a foothold at home, looks at the world, and continues to promote the global layout of the industrial chain, opening up Samsung SDI, LG and other overseas well-known customers, overseas business is expected to promote the company's performance continues to grow.
Profit forecast
We estimate that from 2022 to 2024, the company will achieve revenue of 4462 million yuan 70.16 billion yuan and net profit of 4.77 billion yuan 860 million yuan belonging to the parent company. The company's EPS is 5.42 PE 9.78max 14.12, and the current share price is 30.50Unix 16.90max 11.70.
Risk hint
The risk of new capacity being put into production is not as expected, the expansion of downstream lithium manufacturers is lower than expected, and the sales of new energy vehicles are lower than expected.