Incidents:
Bolliwei released its 2022 annual report: In 2022, the company achieved operating income of 2.3 billion yuan, an increase of 4% over the previous year; achieved net profit of 110 million yuan, down 12% from the previous year; and achieved net profit of 120 million yuan after deduction, a decrease of 14% over the previous year. The decline in the company's net profit during the reporting period was mainly due to a combination of factors such as the continued high level of material prices and the company's continued increase in R&D investment.
Bolliwei released its report for the first quarter of 2023: in the first quarter of 2023, the company achieved operating income of 500 million yuan, down 10% from the previous year; achieved net profit of 0.05 billion yuan, down 121% from the previous year; and achieved net profit of -0.3 billion yuan after deduction, a year-on-year decrease of -113%.
Key points of investment:
Judging from the 2022 performance composition, the energy storage business achieved rapid growth; light vehicles and the consumer sector are under slight pressure: in 2022, the company's energy storage business achieved rapid growth, achieving sales revenue of 292 million yuan, an increase of 128.46% over the previous year. Mainly influenced by factors such as European geopolitics and channel inventories, the light vehicle lithium-ion battery business achieved revenue of 1,232 billion yuan, an increase of 0.09% over the previous year; this year, with the gradual elimination of this influence, it is expected that there will be some recovery. The consumer electronics battery business achieved sales revenue of 553 million yuan, a decrease of 9.10% over the previous year.
Portability+household storage worked together, and customers expanded smoothly: the company's energy storage batteries mainly include portable energy storage and household energy storage, and used the ODM production model to provide products and services to foreign energy storage manufacturers. Among them, the main end customers of portable energy storage are the US and other overseas markets. The main customers for household energy storage are concentrated in the South African market. On the basis of serving old customers, we will continue to develop new customers and add customers such as DURACELL.
By strengthening research and development capabilities, large cylindrical batteries have been put into operation: the company has developed high-safety manganese-based cobalt-free large cylindrical batteries and long-life high-specific lithium iron phosphate large cylindrical batteries. Among them, 34 series large cylindrical batteries were put into operation during the reporting period, achieving technological breakthroughs such as omipolar ears, multi-material systems, and passing single-cell acupuncture tests. Self-developed large batteries may become the strategic foundation for the company's future development, which is expected to further increase the company's market share and competitiveness in the industry.
Profit forecast and investment rating: According to the company's disclosure in the first quarter, we consider that downstream demand has yet to be repaired. The company's profit forecast was adjusted as follows. The net profit returned to the mother in 2023-2025 was 1.6/26/350 million yuan respectively. Corresponding to current valuations of 24, 15, and 11X, considering the impact of the demand side as short-term factors, the medium- to long-term demand on the lightweight power lithium battery circuit is improving, and the energy storage industry is rising, maintaining the “buy” rating.
Risk warning: downstream demand fell short of expectations; raw material prices rose sharply; industry competition intensified; production capacity release fell short of expectations; product development fell short of expectations.