Hangzhou Star Shuaier Electric Appliance Co.Ltd(002860) (002860)
The company is the leader of compressor thermal protector and starter in China, with a stable market position and sufficient customer resources. Since its establishment, the company has always been rooted in the R & D, production and sales of key compressor parts in the fields of refrigerators and freezers. From 2017 to 2020, the CAGR compound growth rate of the company’s protector, starter + sealing terminal products was 11.1%, which has been the mainstay of the company’s steady development for many years. As a leader in subdivided industries, the company’s thermal protectors, starters and sealing terminals account for nearly one quarter of the global market respectively. Downstream customers include well-known compressor manufacturers at home and abroad, including Huayi, Dongbei and Midea, which are deeply trusted by customers. At the same time, the profitability of the company’s products is significantly better than its competitors, the production scale effect is significant, and the automation level is in the forefront of the industry.
The motor, temperature controller and optical communication components have become the stable growth points of the company, and the air conditioning motor for new energy vehicles is expected to open the space for revenue growth. After listing, while maintaining its traditional business advantages, the company successively acquired and increased capital of xindu’an electric appliance, zhete motor, fule new energy and other companies, cut into the fields of temperature controller, small and medium-sized and micro special motors and photovoltaic modules, and gradually build a diversified business matrix. Among them, zhete Electric has actively laid out the field of new energy vehicles in recent years. We expect that the revenue of air conditioning motors for new energy vehicles has exceeded more than 50% of the overall motor revenue. With the support of national policies and breakthroughs in relevant technological development, the new energy vehicle industry will usher in a leap forward development. The company is expected to take the east wind of industrial development to open its own revenue growth space.
Strong cut into the PV module track, with sufficient orders on hand and large capacity. In February 2021, the company acquired 51% equity of Huangshan fule New Energy Technology Co., Ltd. to enter the photovoltaic industry with huge market space. The company’s main products cover 166 half piece / 450W and 182 half piece / 540W components, which are directly or indirectly sold to the United States, Canada, Germany and other countries. It is the only certified supplier of Canadian company a in China. It has cooperated with Juli new energy, Taiheng new energy, Jiaxing No. 36 Institute and other large customers in the Chinese market, and the industry recognition has been greatly improved. At present, the company has hot orders, tight production capacity and rapid expansion. The company expects to have 3.5gW component capacity after reaching the production capacity in 2023, providing the second main line for the long-term development of the company.
Profit forecast and investment rating: we estimate that the company’s operating revenue in 21-23 years will be RMB 1.464/3.292/5.056 billion respectively, with a year-on-year increase of + 57.9% / + 124.9% / + 53.6% respectively; The net profit attributable to the parent company was RMB 152 / 205 / 266 million, respectively + 41.1% / + 34.7% / + 29.6% year-on-year, corresponding to 33.18/24.62/19.00 times of PE. First coverage. Give a “buy” rating.
Risk factors: the demand of downstream white power industry is less than expected, the business expansion of new energy vehicle motor is less than expected, the PV industry policy changes, the order acquisition is less than expected, the company’s profitability is less than expected, etc.
