Ficont Industry (Beijing) Co.Ltd(605305) (605305)
Based on the field of wind power, deep ploughing is the leader of high-altitude safe operation equipment. Ficont Industry (Beijing) Co.Ltd(605305) since its establishment in 2006, it has focused on the R & D, production and sales of high-altitude safety equipment. In recent years, with the rapid development of China’s wind power industry, the company’s business scale in the field of wind power has grown rapidly, accounting for more than 90% of the company’s main business revenue. At present, its products have been applied in 12 industries and exported to 45 countries and regions. It is a national “specialized, special and new” enterprise, with a market share of more than 60% in China’s wind power field.
The wind power industry has long slopes and thick snow, and the large-scale high-altitude safety equipment may be standard. In recent years, with the decline of lcoe (levelized electricity cost) of wind power generation, the wind power industry has been strongly supported by policies all over the world. According to GWEC’s conservative prediction, the average annual compound growth rate will reach 9.87% from 2021 to 2025. Offshore wind power has the natural advantage of not occupying land resources and being close to major power consuming provinces. It is expected that it will be strongly supported by the policies of southeast coastal provinces of China During the 14th Five Year Plan period, China will increase the installed capacity of offshore wind power by about 50gw, and offshore wind power will become the main force of the new installed capacity of the wind power industry. Wind power parity on the Internet reversely promotes the evolution of large-scale wind turbines, and the tower height has repeatedly broken records. High altitude safe operation equipment has gradually become an indispensable standard configuration of wind turbines.
Building high barriers to first mover and brand advantage and relying on cost advantage is expected to reshape global cost performance. High altitude safety equipment involves personnel safety. Once relevant companies enter the downstream customer supplier system, they will not be easily replaced. Ficont Industry (Beijing) Co.Ltd(605305) launched the first tower elevator applied in the field of wind power in 2006. So far, it has applied for more than 500 patents and obtained more than 80 safety qualification certificates around the world. The 3S brand created by the company has formed a strong brand awareness and market influence in the industry, covering 13 of the world’s top 15 fan manufacturers. The company vigorously develops overseas business, and the proportion of relevant revenue continues to increase. In terms of profitability, the company’s profit margin is significantly higher than that of its overseas peers, and it is expected to undertake global cost performance based on cost advantages.
Profit forecast and investment rating of the company: we expect the net profit of the company from 2021 to 2023 to be 245 million yuan, 306 million yuan and 361 million yuan respectively, and the corresponding EPS to be 223 million yuan, 2.78 million yuan and 3.28 million yuan respectively. The current share price corresponds to PE values of 48, 39 and 33 times from 2021 to 2023 respectively. It is expected that the company’s high-altitude safety operation equipment will enter the harvest period, and the “recommended” rating will be given for the first coverage.
Risk tip: the development of the wind power industry is less than expected, the company’s overseas business expansion is less than expected, the market competition is intensified, and the Sino US relationship is deteriorating.
