Mls Co.Ltd(002745) (002745)
Event: the company signed the memorandum of cooperation with landvance and Zhuhai harmony excellence investment center on November 30, 2021. Ledvance energy solutions China, a company jointly funded by the company, landvance and harmony excellence or its designated party, is mainly engaged in distributed household and commercial photovoltaic system and optical storage integration business overseas, and its business scope includes R & D, design, manufacturing, sales and services of relevant products. The total investment of the first phase of the project is 1 billion yuan.
Comments: we continue to recommend Mls Co.Ltd(002745) . We are optimistic about the coordinated development of landvance’s global sales network and harmonious and excellent photovoltaic layout under the background of global “carbon neutrality”. This cooperation will help the company effectively develop the incremental market of overseas Cecep Solar Energy Co.Ltd(000591) power generation.
The global consensus on “carbon neutrality” brings opportunities for rapid growth in the Cecep Solar Energy Co.Ltd(000591) market. In order to cope with the risk of climate change and promote sustainable development, more than two-thirds of the world’s economies have announced the goal of “carbon neutrality”. At present, the international community has basically reached a consensus on coping with global climate change through emission reduction and carbon reduction, “carbon neutralization” has become an inevitable choice to deal with global climate change. At present, the GDP of economies that have issued the “carbon neutralization” goal accounts for more than two-thirds of the world, and the year to achieve the goal is concentrated around 2050. In order to achieve the goal of “carbon peaking and carbon neutralization”, the proportion of renewable energy power generation represented by wind power and photovoltaic will be further increased, According to the prediction of the International Renewable Energy Agency (Irena), in 2050, more than 60% of the global power supply will come from Cecep Solar Energy Co.Ltd(000591) and wind energy; from the perspective of the installed capacity structure, the global installed power generation capacity of Cecep Solar Energy Co.Ltd(000591) is expected to reach 46.5%, and the installed wind power generation capacity is expected to reach 26.9%, accounting for more than 70%.
The global sales network, combined with the photovoltaic industry, focuses on the layout of overseas incremental markets. Harmony and excellence has an in-depth layout in the upstream and downstream of the photovoltaic and energy storage industry chain. Landvance is the world’s top two international general lighting brand. It has legal entities and sales networks in more than 50 countries and regions around the world. Its business covers more than 140 countries and regions around the world. From the perspective of brand influence and channels, it has a good business development foundation. At present, in the context of global carbon reduction, there is a large space in the photovoltaic and energy storage market. In the future, the company will take photovoltaic and energy storage as the company’s strategic business. According to the development stage of the new company and the market demand at home and abroad, with the help of and give play to the resource advantages of the platform of listed companies, the company will focus on this business field. The cooperation is in line with the global energy development and China’s guidelines of “carbon neutralization and carbon peak”, has good development prospects and economic benefits, and is conducive to the company to further strengthen its comprehensive competitiveness and improve its sustainable operation ability.
The company actively distributes emerging industries, and multiple growth factors drive the company’s growth. The company has made active layout in plant lighting, miniled and other fields, and established close cooperation with relevant stakeholders of the industrial chain. Combined with the company’s in-depth layout in the photovoltaic market, the driving force of the company’s future performance growth is strong.
Investment suggestion: it is estimated that the net profit attributable to the parent company from 2021 to 2023 will be RMB 1.300, 1.598 and 1.928 billion, maintaining the “buy” rating
Risk tips: the installed capacity of overseas Cecep Solar Energy Co.Ltd(000591) power generation is less than expected, the risk of international trade friction, the risk of potential epidemic expansion, and the progress of bilateral cooperation is less than expected
