\u3000\u3000 Contemporary Amperex Technology Co.Limited(300750) (300750)
Global power battery leader. The company is a leading power battery system provider in the world, ranking first in the installed capacity of power battery in the world for five consecutive years. Benefiting from the vigorous development of the new energy vehicle industry, the power battery business is the main source of revenue of the company. Its revenue accounts for 88.70%, 78.35% and 69.09% respectively in 2019 / 2020 / 2021h1. Since 2015, the company’s operating revenue and net profit attributable to the parent company have maintained rapid growth. Benefiting from the rapid expansion of production capacity, the cost rate continued to decline during the period. At the same time, the company has a stable leading position in the industry and its operating capacity remains stable.
With the rapid development of new energy vehicles, power batteries take advantage of the trend. Under the resonance of the three major global automobile markets in China, Europe and the United States, new energy vehicles have entered a period of rapid growth. Driven by the rapid development of new energy vehicles, the demand for power batteries is expected to remain high for a long time. At present, the global power battery industry is basically monopolized by China, Japan and South Korea, and the concentration continues to increase. The China Shipbuilding Industry Group Power Co.Ltd(600482) battery market company is the largest, with a market share of more than half. Other players include Byd Company Limited(002594) and other second-line battery enterprises.
Technical cost planning, stable and high-quality customers: technically, the company continues to invest in R & D, based on material system innovation, system structure innovation and extreme manufacturing innovation, forming six cutting-edge technology sequences of high specific energy, long life, ultra fast charging, true safety, automatic control, warmth and intelligent management. In terms of cost, the company fully benefits from the cost advantage brought by China’s complete industrial chain cluster, and deeply arranges the industrial chain with outstanding bargaining power. In terms of customers, the company covers almost all Chinese Shanxi Guoxin Energy Corporation Limited(600617) automobile enterprises except Byd Company Limited(002594) , and has established joint venture production capacity with SAIC, GAC, Geely, FAW and Dongfeng, so as to deeply bind downstream customers. At present, the overseas market company is the only Chinese enterprise that can fully compete with Japan and South Korea battery factories, with high-quality and rich customer resources. Moreover, the company is a battery enterprise in China that planned production capacity overseas earlier. The German factory is expected to be put into operation this year. The follow-up company is expected to continue to release overseas sales with the advantage of nearby supporting facilities.
Profit forecast and Valuation: it is estimated that the company’s revenue from 2021 to 2023 will be 1247.00/234959/334.220 billion yuan respectively, with a year-on-year increase of + 147.82% / + 88.42% / + 42.25% respectively; The net profit attributable to the parent company was 14.965/26627/40.714 billion yuan, with a year-on-year increase of + 168.04% / + 77.92% / + 52.90% respectively; The corresponding EPS from 2021 to 2023 is 6.42/11.42/17.47 yuan respectively, and the corresponding latest PE is 90 / 46 / 30 times respectively, giving a “recommended” rating.
Risk tip: the sales volume of new energy vehicles is lower than expected; Power battery technology innovation exceeded expectations; The price fluctuation of raw materials exceeds the expectation; Industry competition exceeded expectations.
