Xiangtan Electric Manufacturing Co.Ltd(600416) (600416)
Executives adjusted to focus on the main business, and the operating capacity / profitability driven performance continued to release after the management mechanism was straightened out
On November 19, the company issued the announcement on the change of some senior managers of the company, and appointed Mr. Zhang Yuelei, the current general manager of Xiangdian power and the chairman of Tongda electromagnetic energy Co., Ltd., as the new general manager of the company, Mr. Liao Jingao as the executive deputy general manager of the company, and Mr. Li Zhengkang and Mr. Wang Dazhi as the deputy general managers of the company.
We believe that this senior management adjustment is an important strategic transformation for the company to focus on the core main business of military industry and straighten out the management system:
1. As the current general manager of Xiangdian power and the chairman of Tongda electromagnetic energy Co., Ltd., Mr. Zhang Yuelei serves as the general manager of a listed company, reflecting the company’s determination to integrate the core business of integrated power propulsion system + electromagnetic ejection. The main military industry is expected to achieve rapid and large-scale development with the development of naval equipment.
2. At the same time, we believe that the company’s management system is straightened out. After improving quality and efficiency, the company’s operation ability and management ability are expected to be improved, which will catalyze the company’s performance to achieve further volume.
Xiangdian power electric propulsion / launch core technology is the only one in China, adhere to innovation driven and build industry barriers
The company is an old military supporting enterprise in China. After the asset stripping is completed in 2020, the business focuses on the three advantageous sectors of “motor + electric control + electromagnetic energy”. The core technology mastered by the company in the field of military equipment manufacturing is mainly the engineering of special equipment propulsion technology and launch technology developed by China’s top high-tech expert team. It is the most advanced and international cutting-edge technology in China. Its subsidiary Xiangdian power is the only enterprise in China with this core technology. At the same time, according to the announcement of the company, the company established Xiangdian Changsha Research Institute, taking the permanent magnet direct drive technology as the starting point and the research and development of high-efficiency intelligent equipment full electrification technology as the main direction, to create a platform for the development, promotion and application of new technologies and new products. Three projects such as permanent magnet direct drive electric drive system have realized market-oriented promotion and application, and the complete technical level of electric drive system has been significantly improved.
We believe that, as the only enterprise subject in China with the core technology of special equipment promotion / launch, the company continues to promote the iteration and market-oriented implementation of all electric technology innovation, and is expected to maintain its technical advantage and monopoly industrial position for a long time. The company’s products may achieve rapid and large-scale production with the demand for military and civilian products in the “14th five year plan” of the industry.
In depth layout and cooperation with China’s large wind power plants, the wind turbine business driven by policies is expected to accelerate production scheduling
As one of the largest motor manufacturers in China, the company’s motor products also have high popularity and market influence in the international motor industry. The company’s large megawatt series wind turbines and high-efficiency and energy-saving motors have strong competitiveness in the industry, and the products are exported to more than 80 countries and regions in the world. In terms of technology, the company has three national innovation platforms, including the national enterprise technology center, the State Key Laboratory of offshore wind power technology and testing, the national energy wind turbine R & D and experiment center, and three provincial innovation platforms, including Hunan wind power engineering technology research center. Many core technologies are at the leading level at home and abroad.
After rapid development, China’s wind power industry is one of the few industries that have achieved leading advantages in the world. The state has successively launched relevant policies to implement competitive allocation and accelerate wind power consumption, accelerate the construction of offshore wind power and the arrival of affordable Internet access, and the development of the industry has accelerated again. After the divestiture of the complete machine business of permanent magnet direct drive wind power generation system, the company has increased cooperation with large wind power manufacturers in China. The external expansion of wind turbine business has been steadily promoted. It is expected to fully benefit from the growth of wind power demand in the 14th five year plan, and the products are expected to achieve rapid volume.
Profit forecast and rating: To sum up, the company’s executives adjusted the core main business integrated electric propulsion system / electromagnetic ejection business to focus on the main business, and the large order of military products indicates that the business may enter a significant volume stage; Meanwhile, the civil products motor business is expected to fully benefit from the demand growth in the downstream wind power field, and the corresponding business is expected to accelerate production scheduling. Considering the wind power business divestiture in 2021 and the related businesses are in the adjustment period, we adjusted the company’s predicted operating revenue from 5610, 7446 and 98.36 to 4740, 6273 and 8015 million yuan in 2021-23, corresponding to the net profit attributable to the parent company of 125, 302 and 458 million yuan, corresponding to PE of 161.93, 67.12 and 44.30x, maintaining the “buy” rating.
Risk tips: macro liquidity risk, raw material price fluctuation risk, product demand fluctuation risk, etc.
