\u3000\u3000 Wuxi Autowell Technology Co.Ltd(688516) (688516)
Event overview
The company released the performance express in 2021, and the operating revenue in 2021 was 2.048 billion yuan, a year-on-year increase of 79.04%; The net profit attributable to the parent company was 355 million yuan, a year-on-year increase of 128.69%; Deduct the non net profit of RMB 322 million, with a year-on-year increase of 135.35%, slightly exceeding the upper limit of RMB 342 million attributable to the parent company in the previous 2021 annual performance pre increase announcement.
Analysis and judgment:
Significant product advantages and outstanding performance in 21 years
In 2021, the company mainly benefited from the capacity expansion of large-size silicon wafers downstream, and the increased demand for the company’s core products, ultra-high speed large-size series welding machine and silicon wafer sorter, which led to a significant increase in the company’s revenue. At the same time, the company strengthened cost management, further enhanced the ability to control product manufacturing costs and various expenses, and drove the continuous improvement of profitability.
In 2021q4, the company’s business blossoms at multiple points, and high-quality orders continue to land
1) component equipment: the company has obtained the orders of the latest multi main grid series welding machine and non-destructive dicing machine of RMB 145 million (including tax, the same below), the orders of GCL 120 million full-automatic welding machine and non-destructive laser dicing machine, and the orders of Chint Cecep Solar Energy Co.Ltd(000591) 106 million automatic series welding machine (210 half piece special-shaped welding belt configuration); In addition, the company signed a strategic cooperation agreement with Huasheng to jointly promote the process development and large-scale mass production of heterojunction components. Huasheng phase II 2gw heterojunction module project will also select the company’s series welding machine for the whole line.
2) single crystal furnace equipment: the company’s subsidiary Songci electromechanical has obtained the order of 1600 single crystal furnace with 140 million yuan from Yuze semiconductor. Up to now, Songci electromechanical has obtained orders from well-known enterprises such as Jingao, Jingke and Yuze semiconductor. With the continuous development of photovoltaic industry, the single crystal furnace equipment business can be expected in the future.
3) lithium battery equipment: the company has obtained the order of honeycomb module pack line of about 130 million yuan, and the lithium battery equipment business is stable.
4) semiconductor equipment: the company received the first order of semiconductor bonding machine from Wuxi delixin. Wuxi delixin is the first trial customer of the company, which has passed the verification for more than half a year, and has purchased several equipment in the near future.
To sum up, the total number of new orders announced in 21q4 is about 641 million yuan (the bid winning projects disclosed are only those with a bid winning amount of 80 million yuan or more), which is conducive to supporting the company’s performance.
Raise funds to increase product research and development, and the future growth can be expected
The company plans to increase by 550 million yuan. The net funds raised after deducting relevant issuance expenses are intended to be used for high-end intelligent equipment R & D and industrialization projects (300 million yuan), science and technology reserve fund projects (150 million yuan) and supplementary working capital projects (100 million yuan). Among them, the products to be developed by the high-end intelligent equipment R & D and industrialization project are TOPCON battery equipment (boron diffusion equipment and LPCVD equipment), semiconductor packaging and testing core equipment (chip loader, gold copper wire bonding machine and flip chip bonding machine), and lithium battery core process equipment (lamination machine). At present, the company’s main products are multi main grid series welding machine, large-size ultra-high speed series welding machine, silicon wafer sorting machine, laser scribing machine, light injection annealing furnace and other photovoltaic equipment, module pack line and other lithium equipment and aluminum wire bonding machine. The proposed project is expected to further enhance the company’s R & D strength and core technology capabilities, and have greater synergy with the company’s existing products and customers, so as to open up growth space.
Investment advice
Referring to the company’s performance express, we lowered the revenue forecast of 2.197 billion yuan in 21 years to 2.048 billion yuan, and maintained the company’s revenue forecast for 22-23 years, which were 3.298/4.371 billion yuan respectively. Considering the further enhancement of the company’s ability in cost and expense control, combined with the performance express, we raised the prediction of the company’s net profit attributable to the parent company from 335 / 471 / 644 million yuan in 21-23 years to 355 / 512 / 703 million yuan, and raised the company’s EPS 3.0 million yuan in 21-23 years The forecast of 40 / 4.77/6.53 yuan is 3.60/5.19/7.12 yuan, corresponding to the closing price of 173.6 yuan / share on February 21, 2022, and the PE of 21-23 years is 53 / 36 / 27 times respectively. We maintain a “buy” rating.
Risk tips
The tolerance of photovoltaic landscape is less than expected; The R & D of new products is less than expected; Industry competition intensifies.
