\u3000\u3 China Vanke Co.Ltd(000002) 484 Nantong Jianghai Capacitor Co.Ltd(002484) )
Lead aluminum electrolytic capacitors, film capacitors and super capacitors continue to improve. The company is the world’s leading manufacturer of aluminum electrolytic capacitors. In line with the industrial trend, the company has shifted its production capacity to high-end aluminum electrolytic capacitors. The company’s thin-film capacitors and super capacitors have frequently won orders from large customers, and grow together with the high growth downstream of new energy and electric vehicles. The company’s overall expansion to high-end products is expected to open a new growth curve and realize the double rise of performance and valuation center.
Extend the upstream raw materials and comprehensively layout the industrial chain. The self supply rate of raw materials for aluminum electrolytic capacitors of the company has reached 75%. The company’s metal coating technology has made progress in learning and grown under tackling key problems. Most of the metal coatings of thin film capacitors have been produced independently. The electrode material of super capacitor is independently produced by the company. Under the background of tight supply-demand relationship and rising prices of raw materials, the company has ensured the stable supply of raw materials with the highest proportion of cost and improved its comprehensive competitiveness with a comprehensive industrial chain layout.
Actively expand production and speed up catching up with leading manufacturers. In recent three years, the proportion of capital expenditure in revenue has remained above 7%, significantly higher than that of peers. The absolute value of capital expenditure is higher than that of Chinese companies, and gradually approaches the investment scale of overseas leading enterprises. We believe that the company attaches importance to the investment in fixed assets and sufficient capital expenditure, which has laid a solid foundation for capacity expansion and sustained profit growth. The company is expected to achieve greater scale effect and accelerate to catch up with the world’s top two manufacturers.
For the first time, give a “buy” rating. The production lines planned by the company will be put into operation in the next few years, which will help the company break through the existing capacity bottleneck, improve the core competitiveness and open the medium and long-term growth space of the company in the future. It is estimated that the operating revenue of the company from 2021 to 2023 will be RMB 3.736/51.38/7.538 billion respectively, with a year-on-year increase of 41.77% / 37.54% / 46.70%, and the net profit attributable to the parent company will be RMB 525768/1.13 billion respectively, with a year-on-year increase of 40.88% / 46.20% / 48.28%, corresponding to pe39.8% 62x / 27.10x/18.28x, with “buy” rating
Risk tips: the risk of rising raw material prices, repeated epidemics, production restrictions caused by power rationing, and the risk that R & D projects are less than expected
