\u3000\u3 Guocheng Mining Co.Ltd(000688) 499 Guangdong Lyric Robot Automation Co.Ltd(688499) )
Event overview
The company issued a performance express, and achieved a revenue of 2.331 billion yuan in 2021, a year-on-year increase of + 63.04%; The net profit attributable to the parent company was 215 million yuan, a year-on-year increase of + 53.42%; The net profit deducted from non parent company was 208 million yuan, a year-on-year increase of + 66.86%.
Analysis and judgment:
Multiple factors help the company’s performance growth
The company achieved a revenue of 674 million yuan in 2021q4, a year-on-year increase of + 45.54% and a month on month increase of + 10.40%; The net profit attributable to the parent company is expected to be 59 million yuan, with a year-on-year increase of + 19.85% and a month on month increase of + 1.26%. In 2021, the company’s high revenue and profit mainly benefited from the confirmation of mass production of ATL lithium battery equipment orders and the enhancement of profitability.
The proposed issuance of convertible bonds helps to extend technology, and the competitiveness of products is expected to be further enhanced
The company announced on January 4 that it plans to issue convertible corporate bonds to unspecified objects, and the total amount of funds raised will not exceed 950 million yuan. After deducting the issuance expenses, the funds raised will be used for the industrialization project of special aircraft in the front and middle of lithium battery and complete sets of equipment of the whole line and supplement working capital, which will help to further improve the order delivery capacity and product competitiveness of the company:
1) the company has many process modules involved in coater, die-cutting machine, lamination machine, winding machine, cell assembly line, battery assembly line, etc. This fund-raising can significantly improve the delivery capacity of the company’s whole line equipment and enrich the company’s product series;
2) the company will further improve the supply capacity of front and middle section equipment such as coater, lamination / winding machine and undertake the demand of new orders.
The downstream industry continues to be booming, and the orders for power lithium battery equipment are full
In 2021, the market penetration of new energy vehicles and energy storage increased, the installed capacity of power batteries increased, and the head battery manufacturers continued to benefit. The high prospect of downstream industries promoted the demand for lithium battery equipment. According to our calculation, the average annual demand for lithium battery equipment from 2022 to 2025 was more than 100 billion yuan. As one of the leading enterprises in China’s lithium battery manufacturing equipment industry, the company has established long-term and stable cooperative relations with Contemporary Amperex Technology Co.Limited(300750) , Byd Company Limited(002594) , Gotion High-Tech Co.Ltd(002074) , Sunwoda Electronic Co.Ltd(300207) and other well-known manufacturers, and signed cooperation agreements with Byd Company Limited(002594) , honeycomb energy in June and August 2021, respectively, continuously improving its position in the supply chain system of various enterprises. In 2021, the company obtained the order and bid winning notice of nearly 5 billion yuan of power lithium battery. The company deeply tied major customers, with high increase of orders and strong certainty in the future.
Investment advice
With reference to the performance express, adjust the profit forecast for 2021 and maintain the previous profit forecast for 20222023. It is estimated that the revenue from 2021 to 2023 will be 2.331/45.56/6.012 billion yuan respectively, the net profit attributable to the parent company will be 2.15/4.67/748 billion yuan, the corresponding EPS will be 2.44/5.30/8.50 yuan respectively, the corresponding closing price of 225.05 yuan / share on February 25, 2022, and the PE from 21 to 23 will be 92 / 42 / 26 times respectively. We have not given a rating yet.
Risk tips
Product R & D is less than expected, the prosperity of downstream industries is less than expected, and the fund-raising progress of convertible bonds to be issued is less than expected.
