Shaanxi Baoguang Vacuum Electronic Apparatus Co.Ltd(600379) (600379)
Shaanxi Baoguang Vacuum Electronic Apparatus Co.Ltd(600379) formerly known as Shaanxi Baoguang electrical General Factory, it was listed on the Shanghai Stock Exchange in 2002. The actual controller of the company is China Xd Electric Co.Ltd(601179) group, with a shareholding of 24.80%. Its main business is electrical devices and accessories, electronic ceramics, etc. its main products are vacuum arc extinguishing chamber, fixed sealing pole, etc., with a high market share. Based on the existing mature business, the company actively arranges the power grid frequency modulation business, which can effectively solve the problem of grid connected consumption of clean energy, and has broad prospects in the future. By 2021q3, the company had achieved an operating revenue of 816 million yuan, a year-on-year increase of + 33.17%, and a net profit attributable to the parent company of 33 million yuan, a year-on-year increase of + 7.75%.
The company’s mature business grew steadily. Vacuum interrupter is the core component of vacuum switch, which is mainly used in power transmission and distribution control system. The company has mastered a complete set of technologies from raw material production to whole pipe sealing and drainage of vacuum interrupter. It is one of the few enterprises in China that independently process all core parts, with a high market share. According to the 2020 annual report, the direct material cost accounted for 88.03% of the arc extinguishing chamber. The prices of copper, silver and other raw materials rose sharply in 2021. As of December 3, the average spot prices of copper and silver rose by 42.58% and 13.26% respectively year-on-year. The profit space of the whole industry was squeezed to varying degrees. Shaanxi Baoguang Vacuum Electronic Apparatus Co.Ltd(600379) through fine management, the cumulative gross profit margin and net profit margin in the third quarter decreased by 5.08/0.95pct compared with 2020, and the net profit attributable to the parent company was + 7.75% year-on-year. The leading position of subdivision was stable. With the stabilization and decline of upstream prices, the profitability of the company is expected to be further enhanced. The normal operation of power system requires frequency stability. The frequency (50Hz) stability of the power grid is
One of the important symbols of power quality, which is directly related to the normal operation of power driven equipment and has a great impact on metallurgy, chemical industry, electronics, aerospace and other industries. The allowable frequency fluctuation range is ± 0.2hz for the installed capacity above 3000MW and ± 0.5Hz for the installed capacity below 3000MW. It can be seen that the frequency fluctuation range of power grid is narrow and the requirements are strict.
Large scale grid connection of clean energy has a great disturbance to the power grid frequency. As of September 2021, The total installed capacity of clean energy (hydropower, nuclear power, wind power and Cecep Solar Energy Co.Ltd(000591) ) power generation is 1.01 billion kw, accounting for 44.1% of the total installed capacity of power, an increase of about 3% year-on-year. According to the carbon peak action plan, wind power and Cecep Solar Energy Co.Ltd(000591) The installed capacity will reach more than 1.2 billion kw. Wind power and photovoltaic are different from traditional power energy, and their output force has the characteristics of randomness and intermittence, which will make the frequency of power grid fluctuate and cause the decline of power quality. With the increasing proportion of clean energy on the Internet, it will have a certain impact on the regional power grid, impact on the stability of the power grid, make the power grid frequency fluctuate, and even cause a large-area power outage.
Traditional power grid frequency modulation is not competent for large-scale grid connection of clean energy. At present, China’s FM power supply is mainly thermal power units. By adjusting the active power output of the units, the system frequency change can be tracked. However, the thermal power unit has long response time delay, low climbing rate, regulation delay, regulation deviation and regulation reverse, and frequent power change will affect the operation life of the unit. At the same time, limited by geographical conditions, the overall frequency modulation capacity of hydropower units is relatively limited.
Electrochemical energy storage is an effective way to maintain the frequency stability of power grid and solve the grid connected consumption of clean energy. Due to the flexibility of its own power throughput, battery energy storage power station can well support the frequency modulation and voltage regulation auxiliary services of new energy grid connection, and can complete the AGC command within 2S, which is about 60 times the response speed of thermal power units. Therefore, the comprehensive control strategy of grid connected inverter of energy storage power station has attracted much attention and is an effective way to solve the pain point of clean energy grid connection. Meanwhile, on October 11, 2021, the national standard “technical regulations and test guidelines for primary frequency regulation of grid connected power supply” was officially released and officially implemented on May 1, 2022. It is clear that the grid connected power supply such as energy storage power station, wind power and photovoltaic with voltage level of 35kV and above must meet the technical indicators of primary frequency regulation. It has become a general trend for new energy power stations to have primary frequency modulation capability. With the release of the national standard of primary frequency modulation, the installation of energy storage system will become a necessary option, and the frequency modulation capability will become a necessary “skill” for new energy stations.
Shaanxi Baoguang Vacuum Electronic Apparatus Co.Ltd(600379) power grid frequency modulation business is operated by Baoguang Zhizhong, a subsidiary. Baoguang Zhizhong was established in March 2021, Founded by Shaanxi Baoguang Vacuum Electronic Apparatus Co.Ltd(600379) (51%) and Tsinghua Zhizhong energy Internet Research Institute (49%), led by senior academicians, it has accumulated achievements in research and development for decades. With self-developed energy storage EMS as the core, its customers cover five power generation groups and provide 1) energy storage frequency modulation project of thermal power plant (EMC) currently, there are four projects that have been put into operation. The main way of income is to participate in power grid auxiliary services and obtain the income shared with the power plant. The project IRR is not less than 15%, which will be the main revenue generating force of the company in the future; 2) EPC project of new energy + energy storage and complete supply of equipment; 3) R & D and consulting of new energy storage technology products. The hardware of energy storage coordination controller and BMS is provided by the company The company develops by itself and entrusts the manufacturer to carry out OEM.
Investment advice
Power grid frequency modulation is a necessary condition for large-scale grid connection of clean energy. Electrochemical energy storage is hardware, and only hardware + software is the real solution. We believe that Shaanxi Baoguang Vacuum Electronic Apparatus Co.Ltd(600379) as an old central enterprise, with sufficient accumulation of technology R & D, the subsidiary Baoguang Zhizhong has become a pioneer in solving the grid connected consumption of clean energy in combination with the strength of Tsinghua Research Institute, and there is a broad space in the future. We estimate that the operating revenue of the company from 2021 to 2023 will be RMB 993 million, RMB 1184 million and RMB 1423 million respectively, and the net profit attributable to the parent company will be RMB 52.45 million, RMB 94.79 million and RMB 140.64 million respectively, corresponding to 104 times, 57 times and 39 times of PE.
Risk tip: the development of clean energy is not as expected; The promotion of new business is less than expected
