\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 522 Jiangsu Zhongtian Technology Co.Ltd(600522) )
Event: the company plans to acquire 100% equity of Zhongtian Xinxing materials and 100% equity of Zhongtian Electric Technology held by Jiangsu Zhongtian Technology Co.Ltd(600522) group, of which the equity transfer price of Zhongtian Xinxing materials and Zhongtian Electric Technology is 202 million yuan and 179 million yuan, with a total purchase price of 381 million yuan. After the acquisition, the company further expanded the layout of the new energy and power industry chain, and further gave play to the advantages of scale and synergy, which is conducive to improving the company’s cost control and profitability.
The main business of Zhongtian Xinxing materials is the R & D, manufacturing and sales of cathode materials for high-performance lithium-ion batteries, which are used for the manufacture of lithium-ion batteries. After this acquisition, the company will further improve the new energy industry chain, extend to the upstream materials required for the production of high-performance lithium-ion batteries, control the main material links and improve cost control through joint research and development and scale advantages. According to the preliminary accounting by the financial department of Zhongtian Xinxing materials, the operating revenue of Zhongtian Xinxing materials in 2021 was 109 million yuan, a year-on-year increase of 97.66%; The net profit was 5.9126 million yuan, turning losses into profits.
The main business of Zhongtian Electric Technology is the R & D, manufacturing and sales of high and low voltage switchgear and complete sets of equipment. The energy-saving switchgear ztmns developed by the company has the characteristics of small volume and low energy consumption. According to the preliminary accounting by the financial department of Zhongtian Electric Technology, the operating revenue of Zhongtian Electric Technology in 2021 was 241 million yuan, a year-on-year increase of 3.96%; The net profit was 3.2857 million yuan, turning losses into profits.
Focusing on the two strategic directions of communication and new energy, the business continues to break the situation Jiangsu Zhongtian Technology Co.Ltd(600522) is a leading enterprise in optical fiber communication and power cable in China. Its business covers the fields of communication, power grid, marine equipment, new energy, new materials and intelligent manufacturing Jiangsu Zhongtian Technology Co.Ltd(600522) strives to be the main force of the “double carbon” super long track, and has formed an industrial layout with new energy as the breakthrough, marine economy as the leader, smart grid as the support, 5g communication as the basis and new materials as the growth point. In terms of new energy, guided by the “3060” low-carbon green, the company locates the subdivided fields of light, storage and foil, and deeply layout the new energy industry with the development goal of “strengthening the integration of photovoltaic industry, expanding the advantages of energy storage industry and accelerating the layout of copper foil industry”.
In depth layout of energy storage, and the industrial chain extends upstream. The company takes the large-scale energy storage system as the core and focuses on the energy storage applications on the power grid side, user side and power supply side. The company has formed a complete energy storage industry chain including battery anode and cathode materials, structural parts, copper foil, lithium battery, BMS, PCs, EMS, transformer, switchgear, energy storage container and other core components, which can realize the internal independent matching rate of equipment required by power grid side energy storage power station of more than 95%, and the internal independent matching rate of equipment required by user side energy storage power station of more than 99%. In June 2021, the acquired enterprise Zhongtian Xinxing materials has determined the plan to expand the 1500 T / a high-performance lithium iron phosphate production line through the company’s internal meeting. The company plans to expand in 2022 and put into production in 2023. After the expansion, the production capacity will reach 3500 T / A. According to the company’s calculation, the physical capacity can reach 4500 tons / year through technical transformation in the later stage.
Profit forecast, valuation and rating: the prosperity of optical fiber and cable industry is rising, and the submarine cable business is expanding rapidly. The company is a leading enterprise in China’s optical fiber communication and power cable, constantly expanding its business and transforming into a communication and new energy giant. We maintained the net profit attributable to the parent company from 2021 to 2023 as 148 million yuan, 3.916 billion yuan and 4.230 billion yuan, corresponding to 439x, 17x and 15x PE in 21-23 years, maintaining the rating of “overweight”.
Risk warning: the boom cycle of optical fiber price falls, the gross profit margin falls, the boom of submarine cable falls, and the impairment is accrued
