Recommend rehabilitation medical equipment, lithium battery equipment, semiconductor equipment, panel equipment, photovoltaic equipment, knives, etc.: Xiangyumedicalco.Ltd(688626) (688626), Wuxi Lead Intelligent Equipment Co.Ltd(300450) (300450), Suzhou Maxwell Technologies Co.Ltd(300751) (300751), Wuxi Autowell Technology Co.Ltd(688516) (688516), Shenzhen S.C New Energy Technology Corporation(300724) (300724), Opt Machine Vision Tech Co.Ltd(688686) (688686), Shanghai Friendess Electronic Technology Corporation Limited(688188) (688188), Zhejiang Hangke Technology Incorporated Company(688006) (688006), Guangdong Lyric Robot Automation Co.Ltd(688499) (688499), China National Electric Apparatus Research Institute Co.Ltd(688128) (688128), Shenzhen Xinyichang Technology Co.Ltd(688383) (688383) Hunan Baili Engineering Sci & Tech Co.Ltd(603959) (603959), Wuhan Dr Laser Technology Corp.Ltd(300776) (300776), Shenzhen United Winners Laser Co.Ltd(688518) (688518), Shenzhen Hymson Laser Intelligent Equipments Co.Ltd(688559) (688559), China Tungsten And Hightech Materials Co.Ltd(000657) (000657), Oke Precision Cutting Tools Co.Ltd(688308) (688308), Zhuzhou Huarui Precision Cutting Tools.Co.Ltd(688059) (688059), Shareate Tools Ltd(688257) (688257), etc.
Key industry trends: remarkable achievements have been made in the localization of lasers. Eurocell will build a factory producing more than 40 million batteries per year by 2025. 1) Fiber laser giant IPG achieved a revenue of US $1.461 billion in 2021, a year-on-year increase of 22%; The net profit was US $278 million, a year-on-year increase of 74%; The gross profit margin was 47.7%, up 2.8 percentage points year-on-year. In addition, the sales volume of IPG in the Chinese market in 2021 was 548 million US dollars, which is expected to be tied or overtaken by China’s laser leader Wuhan Raycus Fiber Laser Technologies Co.Ltd(300747) . 2) Recently, eurocell, a British South Korean joint venture, announced plans to build a super battery factory in Western Europe, with a total investment of about 715 million euros. At present, the factory address has not been determined. The project is constructed in two phases. It is expected to start the production of batteries as early as 2023. By 2025, a factory producing more than 40 million batteries per year will be built. Eurocell plans to apply its battery products to the field of fixed energy storage systems, while also considering producing power batteries for electric vehicles. We believe that the continuous expansion of overseas battery plants is expected to drive China’s lithium battery equipment to the sea. We suggest paying attention to Wuxi Lead Intelligent Equipment Co.Ltd(300450) , Guangdong Lyric Robot Automation Co.Ltd(688499) and other lithium battery equipment enterprises.
Key recommendation: Hunan Baili Engineering Sci & Tech Co.Ltd(603959) – lithium battery business has sufficient orders, which fully benefits from the capacity expansion of downstream lithium battery materials. According to our calculation, China’s cathode material capacity is expected to reach 6.4 million tons and cathode material capacity is expected to reach 2.5 million tons in 2025. The compound growth rate of capacity expansion during 2021-2025 is about 44% and 26% respectively. According to our calculation, from 2021 to 2025, China’s annual demand for positive material equipment is about 16.2 billion yuan (excluding the market scale of precursor production equipment), positive precursor production equipment is about 8.1 billion yuan, and negative material equipment is about 5.9 billion yuan. ② Baili has the whole process service capability of positive and negative materials and has sufficient orders on hand. In 2021 alone, the company’s lithium battery business has signed orders of more than 2.3 billion yuan. Including: 800 million yuan for Shanshan energy Changsha project, 110 million yuan for Jiangsu beiteri project, 230 million yuan for Chengdu BAMO project, 90 million yuan for Sichuan lithium source project, 874 million yuan for Anhui Haichuang project, etc. With the downstream expansion of production, the company is expected to fully benefit.
Investment suggestions: 1) recommend the leader of rehabilitation medical equipment Xiangyumedicalco.Ltd(688626) . 2) Lithium battery detection has become a new growth point of machine vision, focusing on the layout of enterprises in the whole industry Opt Machine Vision Tech Co.Ltd(688686) . 3) The downstream space of lithium battery equipment is large, and the equipment company has strong certainty. It is recommended to Wuxi Lead Intelligent Equipment Co.Ltd(300450) , Guangdong Lyric Robot Automation Co.Ltd(688499) , Zhejiang Hangke Technology Incorporated Company(688006) , China National Electric Apparatus Research Institute Co.Ltd(688128) , Shenzhen United Winners Laser Co.Ltd(688518) , Shenzhen Hymson Laser Intelligent Equipments Co.Ltd(688559) . 4) Focus on high-quality panel equipment enterprises Suzhou Hyc Technology Co.Ltd(688001) , Shenzhen Xinyichang Technology Co.Ltd(688383) . 5) The laser cutting control system faucet Shanghai Friendess Electronic Technology Corporation Limited(688188) is recommended. 6) Hjt is expected to become the next generation of mainstream cell technology, and Suzhou Maxwell Technologies Co.Ltd(300751) , Wuhan Dr Laser Technology Corp.Ltd(300776) are recommended. 7) Focus on high-quality tool enterprises China Tungsten And Hightech Materials Co.Ltd(000657) , Oke Precision Cutting Tools Co.Ltd(688308) , Zhuzhou Huarui Precision Cutting Tools.Co.Ltd(688059) , Shareate Tools Ltd(688257) ; 8) Other concerns: Beijing Huafeng Test & Control Technology Co.Ltd(688200) , Leader Harmonious Drive Systems Co.Ltd(688017) , Zhejiang Supcon Technology Co.Ltd(688777) , Hunan Baili Engineering Sci & Tech Co.Ltd(603959) , etc. (Note: Xiangyumedicalco.Ltd(688626) , Shanghai Friendess Electronic Technology Corporation Limited(688188) , Beijing Huafeng Test & Control Technology Co.Ltd(688200) are jointly covered by Huaxi machinery and medicine, small and medium-sized enterprises and electronic teams respectively).
Risk tip: the fluctuation of economic growth increases; The order acquisition of relevant enterprises is less than expected.
