Shandong Weida Machinery Co.Ltd(002026) (002026)
The company’s electric tool products started, cut into the field of new energy for electricity, and ushered in new growth opportunities. The company was established in Weihai, Shandong Province in 1998, starting with drill chuck and its accessories. It has become a leading enterprise in the electric parts industry, and electric tools account for about 70% of the company’s revenue. The company’s existing business can be divided into three parts: electric tools, high-end intelligent equipment manufacturing and new energy power station. From 2017 to 2020, the company’s operating revenue increased from 1.47 billion yuan to 2.17 billion yuan, with a compound growth rate of 14%; The net profit attributable to the parent company increased from 130 million yuan to 250 million yuan, with a compound growth rate of 24%.
The power exchange industry has a huge market space. With the improvement of the penetration rate of new energy vehicles and the optimization of station ratio, power exchange is a 100 billion scale track. From the perspective of the penetration rate of the exchange station, the planning proportion of the existing exchange station is only 10% compared with that of the gas station. In 2021, the sales of Shanxi Guoxin Energy Corporation Limited(600617) vehicles broke out, and the shackles of charging infrastructure became prominent. 1) At the user level: there is still a large gap between the number of charging piles in China and the ideal vehicle pile ratio of 1:1, and the basic charging facilities are still imperfect; The charging mode takes a long time to supplement power, the owner’s power anxiety is obvious, and the travel freedom is poor; The power change mode improves the energy supplement efficiency and directly hits the user’s pain points. 2) Power grid level: the power exchange mode can be charged at leisure, which can solve the problems of strong randomness of fast charging mode, large impact on the power grid and unfavorable to peak shaving. It has a high matching degree with the energy structure dominated by photovoltaic and wind power in China in the future. China’s energy policy is favorable for the power exchange mode for a long time. 3) Market space analysis: the construction of power exchange station is in the ascendant, the policy encourages the power exchange mode, and the national policy + local pilot promotes the development of the industry.
Weidasun Kunshan swop is the only supplier of Weilai second generation replacement power station. Weilai plans to build 4000 replacement power stations in 2025, with an increase space of more than 8 times. Shandong Weida Machinery Co.Ltd(002026) cooperate deeply with Weilai to establish a joint venture Kunshan swop to develop and produce replacement power station products. Weilai is the current leader in the field of TOC power exchange. In the second half of 2021, the layout of Weilai second-generation power exchange station accelerated, and more than 400 new power exchange stations were built throughout the year, driving the large-scale sales of Weida power exchange station products. Weilai plans to build more than 4000 replacement power stations in the world by 2025, which corresponds to the growth space of the company’s replacement power station sales in four years and eight times.
The leading position of electric tools in the main industry is stable, and the large infrastructure in the United States is expected to continue to stimulate downstream demand. The company’s shipment of drill chuck products has ranked first in the world for more than 20 years, and its revenue has increased for many years, continuously consolidating its leading position in the market. The company has excellent customer structure and has always maintained strong cooperative relations with well-known brand companies at home and abroad, such as Bosch in Germany, Makita in Japan and Stanley Agriculture Group Co.Ltd(002588) Baide in the United States. The building a better future act of the United States plans to invest US $1.2 trillion in infrastructure construction in the next eight years. The bill includes large-scale investment in infrastructure such as roads, bridges and waterways, which is expected to drive the downstream demand of electric tools and promote the continuous and large-scale sales of the company’s overseas electric tool accessories business.
Profit forecast and Valuation: we expect the company to realize a net profit attributable to the parent company of RMB 399 / 508 / 688 million from 2021 to 2023, with a year-on-year increase of 57% / 27% / 35%, and the corresponding PE of the current stock price is 21.1 / 16.5 / 12.2 times respectively. For the first time, give the company a “buy” rating.
Risk tip: the construction progress of Weilai power station is not as expected; Intensified competition in the manufacturing field of power exchange station; The demand for electric tools is not as expected; There is an error between the data assumption and the actual situation.
