Shenzhen United Winners Laser Co.Ltd(688518) (688518)
The company specializes in the R & D, production and sales of precision laser welding machines and complete sets of laser welding automation equipment. The company’s products are widely used in power batteries, automobile manufacturing, hardware and household appliances, consumer electronics, optical communication and other manufacturing fields. The company was listed on the science and innovation board in 2020, actively expanded product types and industry business, and accelerated investment in R & D projects with good market prospects, such as the industrialization of high-power blue laser and multi wavelength composite laser welding system. Benefiting from the high prospect of lithium battery industry, the company’s performance ushered in an inflection point. In the first three quarters of 2021, the company’s revenue increased by 91.59% year-on-year to 916 million yuan, and the net profit attributable to the parent company increased by 336.40% year-on-year to 56 million yuan.
Accelerated expansion of power battery and laser welding
1) With the rapid expansion of power battery production, the leading effect is gradually significant. The production and sales of new energy vehicles are rising, the power battery industry continues to benefit, and the installed capacity continues to rise. According to incomplete statistics of GGII, the investment in power battery in 2021 has exceeded 500 billion yuan. Of which Contemporary Amperex Technology Co.Limited(300750) accounts for 50% of the installed capacity of power lithium battery. As a Contemporary Amperex Technology Co.Limited(300750) long-term partner, the company is expected to further bind leading enterprises and achieve leapfrog growth.
2) With the rapid development of laser equipment, the demand for laser welding is increasing. The laser equipment industry is in a period of rapid development. At present, the market scale of laser processing equipment in China shows a good upward trend. It is expected that the market scale of laser equipment will reach 98.8 billion yuan in 2021. The company has been deeply engaged in the field of laser welding for many years, especially specializing in power battery welding technology. Under the background of high prosperity of new energy vehicle industry, the development toughness of power battery welding business of the company is strong.
3) 4680 was born, and the welding link is expected to benefit. The number of electrode lugs of 4680 battery increases due to the increase of the number of electrode lugs. From the point of view of spot welding process, all polar ear laser spot welding will increase the number of solder joints. Compared with 21700 battery, the number of solder joints of 4680 is more than five times higher. In addition, the increase in the number of polar lugs requires higher welding accuracy, quality and consistency, which makes new requirements for the use stability of welding machines. The company is expected to rely on its advantages in welding technology to seize more market share in 4680 battery production.
The company has ushered in high performance growth and continued to promote technology research and development
1) The company has been deeply engaged in laser welding technology for nearly 20 years. By 2021h1, the company has obtained 302 patents, continuously improved the product matrix and developed advanced technology. At present, the company has completed the R & D stage of a number of power battery welding related technologies, with rich technical reserves.
2) The compound growth rate of the company’s revenue from 2016 to 2020 was 20.53%. In the first half of 2021, the company signed 1.921 billion yuan of new orders (including tax), an increase of 27.39% year-on-year, of which 85% of the new orders came from the power battery industry, which provided a guarantee for the subsequent performance growth of the company.
Investment suggestion: we expect the revenue from 2021 to 2023 to be 1.353 billion yuan, 2.930 billion yuan and 4.334 billion yuan respectively, with a year-on-year growth rate of 54.1%, 116.5% and 47.9% respectively; The net profit attributable to the parent company was 106 million yuan, 339 million yuan and 693 million yuan respectively, with a year-on-year growth rate of 58.5%, 219.6% and 104.2% respectively, and the corresponding EPS were 0.35 yuan, 1.13 yuan and 2.31 yuan respectively. Corresponding to the closing price of 52.3 yuan / share on November 29, 2021, PE is 147 / 46 / 23 times respectively. For the first time, the company is rated as “overweight”.
Risk tip: the prosperity of downstream industries is lower than expected; The risk that the company’s product R & D and marketing are not as expected.
