Sieyuan Electric Co.Ltd(002028) (002028)
By summarizing the recruitment needs of the company on the recruitment website in recent months, we find that the company’s personnel needs are mainly concentrated in three aspects:
1. Cell developer. Including personnel in lithium battery R & D, electrode, assembly, chemical formation, testing, BMS, pack and other processes. Among them, the personnel in the R & D section are responsible for the development of 8ah & 6ah HEV cell structure and function; The electrode process personnel are responsible for the mixing, homogenization and coating process of NCM and LFP systems; The assembly section personnel are responsible for the lamination / winding, welding and packaging process development of soft package or square cell; The personnel in the chemical forming section shall be responsible for the development of the chemical forming, OCV and volume dividing process of soft package or square cell; The personnel of BMS and pack section are responsible for the construction of cell BMS and pack platform and the formulation of relevant standards. The company has established a wholly-owned subsidiary, Jiangsu Siyuan Battery Technology Co., Ltd. In November 2021, the company announced that it planned to increase the capital of the battery company together with the limited partnership to be established for the purpose of equity incentive. After the capital increase, the registered capital of the battery company increased to 100 million yuan. At present, the company has sufficient cash in hand and has been layout in the field of battery cells, especially super capacitors for a long time. This time, it plans to expand the lithium battery team and expand the layout in the field of battery cells, which is expected to form an effective support for HEV vehicles and energy storage business.
2. Overseas sales and EPC landing personnel. The languages of sales personnel include Spanish, Russian, English, French, Arabic, etc. EPC Delivery Engineer is mainly responsible for construction technology management, progress control, quality control and problem feedback of overseas EPC projects.
Under the epidemic situation, the company has steadily promoted overseas EPC projects and has obvious competitive advantages overseas. According to the announcement, orders in overseas markets will account for about 20% in 2020, and the company plans to increase to 30% in the future. At present, the company’s overseas projects are mainly in the European and African markets. The company judges that the largest demand in the future is in North America. At present, it has won the bid for the transformer project of Buffett power company in the United States. According to the statistics of the U.S. Department of energy (DOE), at present, 70% of the transmission lines and transformers in the United States have more than 25 years of operation, and 60% of the circuit breakers have more than 30 years of operation. The old power grid facilities are facing great challenges to ensure the reliability of power supply. The company has a large potential demand when entering the U.S. market.
3. Power simulation and control personnel. It mainly includes electrical engineers, embedded software engineers, power electronics simulation engineers, etc., mainly responsible for the R & D and improvement of primary and secondary equipment. The company’s secondary equipment sector developed rapidly. The subsidiary Siyuan Hongrui made a net profit of 112 million yuan in 2020, a year-on-year increase of + 72%. Under the background of new power system, the demand for UHV and distribution network shows a structural high growth. The company has opened up primary and secondary equipment and strengthened system capacity.
Investment suggestion: the company has strong competitiveness in the field of power grid equipment. With the continuous expansion of overseas EPC projects, it is expected to continue to drive the improvement of the company’s performance. At the same time, the company is establishing and expanding the cell development team, which is expected to form an effective support for HEV automobile business and energy storage business. We maintain the company’s 21-23 year profit forecast of RMB 1.25/15.9/1.96 billion, corresponding to EPS of RMB 1.63/2.08/2.56, and the current stock price corresponding to 22 year PE of 25 times, maintaining the “buy” rating.
Risk tips: Overseas EPC project risk, upstream raw material price rise risk, and intensified market competition risk.
