Shenzhen Topband Co.Ltd(002139) (002139)
Abstract: (1) the company announced that it plans to establish a new company in Nantong to invest in the construction of lithium battery project with its own funds or self raised funds, and purchase the original Hanhua new energy plant with completed infrastructure for the construction of square aluminum shell cell, soft pack cell, large cylindrical cell and battery pack production line. (2) The company won the centralized bidding project for lithium iron phosphate battery products for standby power of China Tower in 2021, with a winning share of 17% and a winning amount of about 241.4 million yuan.
Lithium battery business is growing rapidly. In order to meet business needs, expand production capacity and focus on energy storage and light power market. The lithium business of the company has been growing rapidly for three consecutive years, with a lithium business revenue of 427 million in 2021h1, a year-on-year increase of 54.07%. Previously, the raised funds were invested in Huizhou phase II, including the expansion of 1.3gwh lithium battery capacity. The total investment of Nantong project is 5 billion yuan. It is a production base for square, soft pack, cylindrical cell and pack battery pack. The total design capacity is 6gwh for cell and 4gwh for pack battery pack. The project will be implemented in three phases. The first phase will invest 1.6 billion yuan to produce 2gwh cells and 1GWh battery packs; The investment in phase II is 1.7 billion yuan, adding 2gwh cells and 1.5gwh battery packs; The investment in phase III is 1.7 billion yuan, adding 2gwh cells and 1.5gwh battery packs. The first phase is put into operation in two stages. The first phase is put into operation with a power cell of 1.3gwh, with an investment of 750 million yuan, including an equipment investment of 280 million yuan; In the second stage, 0.7gwh of cell and 1GWh of pack battery pack are added. The company's lithium battery business takes "energy storage + light power" as the main development direction. The company can provide the whole industry chain services of battery cell, BMS and pack. The company continues to obtain orders for lithium batteries for communication base stations, and has established stable cooperative relations with operators and Chinese iron towers. Under the background of carbon neutralization, the energy storage market has broad prospects. The rapid construction of production lines through foreign investment and the improvement of the capacity scale of lithium batteries are conducive to grasping the development opportunities of large-scale applications of lithium batteries and realizing high business growth.
Communication energy storage, home energy storage and portable energy storage have broad market prospects. At present, the company's products mainly include lithium batteries and inverters. The downstream application of inverter is mainly portable energy storage, which can also replace the traditional fuel generator. At present, the products are mainly focused within 3KW. In the future, with the expansion of application fields, the categories of products will be further enriched. The demand power for lithium batteries of base stations comes from 5g base stations. GGII expects that the number of communication towers will increase to 13 million by 2025, and the market demand for lithium batteries of global base stations will increase from about 10gwh to 60gwh from 2020 to 2025. Compared with traditional small-scale fuel generators, portable energy storage products have the advantages of safety and portability, green environmental protection, no noise and simple operation. They can widely replace small-scale fuel generators, accurately match the consumption pain points of the power demand market in the new era, and the market scale is growing rapidly. As an important supporting product of portable energy storage products, the improvement of photovoltaic power generation efficiency and the reduction of cost will be conducive to the popularization of portable energy storage products. Due to the rapid growth in the number of intelligent terminals per capita, rich demand for outdoor scenes, power instability caused by frequent disasters and other factors, portable energy storage products in the global market have a large growth space.
Three electricity and one network form an overall scheme, high standard assessment and incentive objectives, and establish a long-term mechanism. The company has accumulated a large number of general technologies, covering more than ten fields such as intelligent control algorithm, frequency conversion, sensing, human-computer interaction, heating, refrigeration and power supply. With the "three electricity and one network" technology of electronic control, motor, battery and Internet of things platform as the core, the company provides various customized solutions for the four major industries of household appliances, tools, industry and lithium battery application. The incentive objects of the company's new incentive plan include directors, middle and senior managers core technology (business) backbone, etc. the assessment indicators are divided into two levels: company level performance assessment and individual level performance assessment. The performance indicators take the operating revenue in 2020 as the base, the growth rate of operating revenue in 2022-2024 shall not be less than 70%, 120% and 180% respectively, or take the deduction of non net profit in 2020 as the base, and the growth rate of non net profit in 2022-2024 shall not be less than 100%, 150% and 220% respectively Assessment objectives. The equity incentive will help to fully mobilize the initiative and creativity of the company's core backbone. At the same time, the high performance appraisal conditions also reflect the company's management's confidence in the company's medium and long-term development. The world has entered the era of intelligence. There will be more and more application scenarios for controllers. The concentration of Chinese controller manufacturers will gradually increase. The introduction of equity incentive will escort the medium and long-term growth.
Investment suggestion: Shenzhen Topband Co.Ltd(002139) is a leading provider of intelligent control solutions, increasing investment in lithium battery capacity, and lithium battery energy storage is expected to become a new growth point. The company has established a long-term incentive mechanism, refined operation, cost reduction and efficiency increase, and large-scale effect appears. We expect the net profit of the company from 2021 to 2023 to be 726 million / 941 million / 1219 million, and EPS to be 0.59 yuan / 0.76 yuan / 0.98 yuan respectively, maintaining the "buy" rating.
Risk warning: the application of intelligent controller in downstream industry is less than expected; The risk of intensified market competition; Exchange rate fluctuation risk; Risk of shortage of upstream raw material supply; Lifting the ban on restricted shares, etc
