Wuxi Autowell Technology Co.Ltd(688516) (688516)
Event: on November 30, 2021, the company announced that it had won the honeycomb 130 million yuan (tax included) order, with a total of 4 lithium battery equipment module + pack production lines.
Key investment points
The module + pack line cut into the field of lithium battery equipment and made a breakthrough in large orders
Lithium battery equipment is a high growth business with a low base of the company: relying on core welding technology, the company cut into the lithium battery equipment industry with module + pack line in 2016, and arranged cylindrical battery core appearance inspection equipment. In 2020, the company won the order of aierji new energy, a world-famous lithium battery company, and achieved a breakthrough in the order. In the past, the revenue volume of lithium battery equipment of the company was small (the revenue in 2020 was 34 million yuan, accounting for 3% of the revenue). This time, the company obtained a large order of 130 million yuan for honeycomb new energy (four modules + pack lines, and the average value of a single line was about 30 million yuan). The order magnitude and customer quality achieved a breakthrough, which proved that the company's products were fully recognized by major customers.
Module + pack line is the general trend of high automation production line in the future, and the inflection point of automation rate has emerged
From the lithium battery cell to the automation module to the battery pack, the module line + pack line is the key equipment, and its automation degree is the key factor determining the production efficiency and production cost. Under the background of high labor cost, in order to further improve production efficiency and reduce cost, it is imperative for lithium battery manufacturers to vigorously promote the application of pack automatic production line. According to our calculation, from the perspective of equipment depreciation + labor cost, the high automation rate is 28% higher than the low automation rate in 2021. However, with the rise of labor cost in the future, we judge that the cost performance advantage of high automation production line will gradually appear. The Chinese companies in this track only have Shanghai Sk Automation Technology Co.Ltd(688155) , Wuxi Lead Intelligent Equipment Co.Ltd(300450) , Guangdong Lyric Robot Automation Co.Ltd(688499) , and the sales market share of Shanghai Sk Automation Technology Co.Ltd(688155) is far ahead in the high-end market. We believe that Wuxi Autowell Technology Co.Ltd(688516) selecting the module + pack link to enter the lithium battery equipment industry will obtain a certain share with the help of the company's own excellent automation equipment capability and software system capability.
Raise funds to expand lithium battery cell manufacturing equipment, and the extension of product line is expected to open up market space
In June 2021, the company will raise 550 million yuan, including 50 million yuan for cell manufacturing equipment such as stacking machine, which will extend to the front end of the industrial chain. In the past, technological changes occurred in the lithium battery industry every 2-3 years, but due to the impact of the epidemic in 2020, there was no significant change in the process of lithium battery equipment. Later, we believe that new technologies such as 46800, semi-solid battery and catl nano battery will be implemented one after another. The company chose products with higher technical content and faster iteration frequency for cell manufacturing equipment, It will fully benefit from the incremental market brought by new technology changes and open up the growth space of the company.
Semiconductor equipment and silicon wafer equipment have made great breakthroughs, and the business layout has blossomed at many points
(1) semiconductor bonding machine: the company developed a semiconductor bonding machine in 2018, completed the verification within the company in 2020, and tried it on the client in early 2021. According to the WeChat official account, Wuxi Deli core has purchased several aluminum wire bonding machines in November 2021. The order is the first order, with little volume, but we expect to increase faster in the future, Wuxi Autowell Technology Co.Ltd(688516) As the leader of photovoltaic module equipment, it has successfully entered the semiconductor industry. The company's aluminum wire bonding machine has been tried out in many customers. If the trial goes well, we expect that the batch orders of the company's bonding machine will be accelerated. (2) Photovoltaic silicon wafer equipment: in April 2021, the company increased its capital to hold songporcelain Electromechanical, which was extended to the silicon wafer link. After the capital increase, Wuxi Autowell Technology Co.Ltd(688516) The shareholding ratio is 51%; 2021h1 monocrystal furnace produced by songporcelain electromechanical successfully pulled out 12 inch n-shaped crystal rod at the client, and has obtained an order of 9.5 million yuan for monocrystal furnace; In August 2021, the company received another order for Jingao single crystal furnace; In October 2021, it was announced that Songci electromechanical won the bid for Yuze semiconductor's "1600 single crystal furnace procurement" project (corresponding to 210 silicon wafers), the bid winning amount was 140 million yuan (including tax), the newly signed single crystal furnace reached about 160 million yuan, and the photovoltaic industry chain expanded smoothly.
Profit forecast and investment rating: with the continuous prosperity of photovoltaic module equipment + smooth expansion of new fields, we maintain the parent net profit of RMB 320 / 440 / 580 million from 2021 to 2023, corresponding to 77 / 57 / 43 times of the current share price PE, maintaining the "overweight" rating.
Risk tip: industry competition intensifies, new product expansion is less than market expectations, and downstream production expansion is less than market expectations.
