\u3000\u3000 Wuxi Autowell Technology Co.Ltd(688516) (688516)
Key investment points
Won the bid of Jingao component equipment; It is estimated that the newly signed orders will exceed 3.5 billion yuan and the orders on hand will exceed 4 billion yuan in 2021
1) winning the bid of 110 million component equipment: according to the company’s announcement, the company successfully won the bid of Qujing Jingao and Hefei Jingao component equipment expansion projects, with a bid winning amount of 110 million yuan. The two equipment winning the bid (silicon sorter & Multi main grid scribing and welding conjoined machine) are the core products of the company, with strong strength and high market share (the market share of the company in the field of photovoltaic module series welding machine is expected to exceed 70%).
2) orders on hand: by the end of the third quarter of 2021, the company’s orders on hand had reached 3.625 billion yuan (including tax), a year-on-year increase of 55%. Superimposed on the orders of Jingke, Chint, Yuze, beehive, Huasheng, Gcl System Integration Technology Co.Ltd(002506) and delixin semiconductor announced by Q4 company in 2021 (the total amount is expected to exceed 700 million yuan), the orders on hand are expected to exceed 4 billion yuan (2.4 billion yuan by the end of 2020).
3) new orders signed: in the first three quarters of 2021, the total number of new orders signed by the company reached 2.86 billion yuan (including tax), a year-on-year increase of 39%. Based on the statistics of newly signed orders announced by Q4 company in 2021, it is estimated that the newly signed orders of the company in 2021 will exceed 3.5 billion yuan (2.67 billion yuan in 2020), of which the orders of photovoltaic equipment account for more than 90%.
4) performance forecast for 2021: it is expected to be 330-340 million yuan in 2021, with a year-on-year increase of 110% – 120%. Short term: benefiting from multiple technological changes in the photovoltaic industry, the equipment iteration is accelerated (only 1.5-2 years). The company is the leader in 70% market share of series welding machine, which fully benefits. At the same time, the company’s layout of photovoltaic single crystal furnace and its value is 6 times that of series welding machine, opening up the space for performance growth. Medium and long term: the company’s platform layout opens the second growth curve of performance. The company’s semiconductor bonding machine equipment is progressing smoothly, has received the first batch of orders, and is expected to relay the large-scale production of photovoltaic equipment in the next 2-3 years. Lithium battery equipment orders accelerated, covering core high-quality customers.
The company is the leader of component series welding equipment; Platform layout, looking forward to the multi-point flowering of the company’s photovoltaic, semiconductor and lithium battery equipment
1) component series welding machine: meet the multi technology iteration trend of “large size + multiple main grids + multiple segments”, and accelerate the iteration cycle of component equipment renewal. The company is the leader of component series welding machine equipment, with a market share of 70%, benefiting from technical iteration and winning the order of Huasheng hjt component equipment.
2) photovoltaic long crystal furnace: the value of single crystal furnace (120 million / GW) is 6 times that of series welding machine (20 million / GW). The company acquired Songci Electromechanical, produced 1600 and above direct pull single crystal furnaces, and has obtained 171 million orders (including tax), opening the second growth curve of photovoltaic of the company.
3) semiconductor equipment: the company is the first domestic enterprise to replace aluminum wire bonding machine. It has been verified by many sealing and testing plants in China and won the first batch of orders of Wuxi Deli core. In the future, it will extend to gold, copper wire bonding machines and upstream semiconductor equipment to open the second pole of semiconductor business growth.
4) lithium battery equipment: the company arranges lithium battery module + pack line, covering high-quality lithium battery customers in China. In the first half of 2021, lithium battery orders reached the level of 2020, and the performance is expected to accelerate. It is proposed to invest 50 million more in cell manufacturing equipment such as stacking machine.
Investment suggestion: optimistic about the company’s performance in the field of photovoltaic, semiconductor and lithium battery equipment in the next five years
It is estimated that the net profit attributable to the parent company from 2021 to 2023 will reach RMB 330 / 470 / 610 million, with a year-on-year increase of 113% / 41% / 31%, corresponding to 54 / 38 / 29 times of PE. Maintain the “buy” rating.
Risk warning: the downstream expansion of photovoltaic production is less than expected; The development progress of semiconductor equipment is lower than expected.
