Oke Technology is the leading domestic raw paper intelligent equipment company, the business continues to expand, has developed and produced mask machines, household paper packaging materials and wet diaphragm equipment.

The localization of diaphragm equipment is imperative, and the company's cross-border wet equipment should seize the growth opportunity.

The high prosperity of the lithium diaphragm industry continues: thanks to the rapid development of new energy vehicles and energy storage demand, the rapid growth of global lithium battery shipments has accelerated the expansion of the lithium diaphragm industry. At present, China has become the main force of global lithium diaphragm supply, accounting for nearly 80% of global shipments.

The problem of equipment "neck jam" is prominent: domestic lithium diaphragm enterprises continue to expand, but most of the wet equipment are imported by foreign manufacturers, the price is high and the supply is limited. The first-line diaphragm manufacturers lock in the equipment production capacity of overseas manufacturers, the equipment constraints of the second and third-tier diaphragm manufacturers are obvious, the fierce competition in the industry reduces the demand for cost and efficiency, and the prospect of domestic replacement of equipment is broad.

The company forcefully marches into the field of equipment to help accelerate localization: the company's papermaking equipment and packaging materials have common technology with wet diaphragm, and with years of research and development experience, it has strongly entered the field of lithium diaphragm equipment. At present, the company has signed a 88 million yuan wet diaphragm production line contract with Jiujiang Guanli New Materials, and the company is expected to usher in the second growth curve when more orders are landed.

The volume of packaging materials is expected in the future, and the main business papermaking equipment provides high quality cash flow.

Accelerated production capacity of packaging materials: household paper film packaging materials is an extension of the company's existing product industry chain. At present, the company's new packaging material production line can achieve an annual production capacity of 41000 tons of household paper packaging materials, and the production capacity is accelerated. Profitability continues to improve.

The papermaking equipment business order is abundant, the profitability is stable: the company is the domestic household paper intelligent equipment leading company, at present the order is abundant, the gross profit margin is stable above 50%, the strong profitability of the papermaking equipment business provides the company with high quality cash flow.

Investment advice: we expect the company's 2023Universe 2024Universe to make a net profit of 1.87Unix 2.95 / 690 million in 2025, corresponding to 31x/20x/8x for PE, giving a "buy" rating for the first time.

Risk tips: performance fluctuations, downstream demand growth is not as expected, market competition intensifies, raw material prices fluctuate, new customer development is not as expected, project talent risk.