\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 137 Ningbo Boway Alloy Material Co.Ltd(601137) )
1. After 30 years of hard work, it has finally become a leader in high-end copper alloy
Ningbo Boway Alloy Material Co.Ltd(601137) is the leader in China’s high-end copper field, focusing on the field of copper alloy since its establishment. The company has accumulated a lot of experience in alloy R & D. with the conversion of R & D achievements, it has gradually realized the transformation to high-end copper alloy sector and strip. At present, its products cover 17 alloy series and can provide professional products and services for nearly 30 industries such as downstream automotive electronics, semiconductor chip and 5g communication. In 2016, the company entered the new energy industry through mergers and acquisitions, forming a business structure of “focusing on new materials + supplemented by new energy”.
2. The electric and intelligent two wheel drive of automobile injects multi-dimensional growth power into the industry
With the rapid development of automobile electrification and intelligence, new requirements are put forward for the performance of parts. Benefiting from the explosive growth of new energy vehicle sales, the market space of vehicle connectors, charging piles, IGBT and other parts expands accordingly. Taking the vehicle connector as an example, under the opportunity of intelligent driving, the trend of multi-sensor and domain centralization drives the demand for high-speed connector; At the same time, the rapid shipment of new energy vehicles has driven a significant increase in the consumption of high-voltage connectors. As the most important upstream raw material of the above parts, high-end copper alloy has an unstoppable demand growth under the vigorous development of new energy vehicles and the trend of localization substitution.
3. With the help of IGBT high prosperity, there is a wide space for domestic substitution of semiconductor lead frame
With the rapid growth of semiconductor industry, the scale of lead frame industry expands. From the demand side, the application of IGBT in the field of new energy is growing rapidly and has become the first driving force driving the growth of the industry; From the supply side, Chinese manufacturers accounted for less than 40% of the Chinese market in 2019, and there is still much room for substitution.
4. The technological moat is stable, and the performance of capacity release will usher in spring
(1) the R & D team has strong strength and master a number of core technologies. The company’s core technical advantages are embodied in alloying, microstructure reconstruction and independent research and development of special equipment, which leads the development of the industry. As of the reporting period of 2021h1, the company has applied for 268 invention patents and authorized 137 invention patents. High investment in R & D is the driving force for the company’s leading profitability. (2) Fully meet the market demand and lay out high-end production capacity in advance. In the process of development, the company actively complies with the high-end demand of the market and arranges the expansion projects in advance. The existing production expansion projects are carried out gradually; With the gradual transition of products to high-end, the profitability of the company is expected to be further improved.
5. Overseas leaders have their own strengths, and mergers and acquisitions have expanded their territory
Velander, Hitachi metal and Mitsubishi (Shentong) are the first tier companies in the global high-end copper alloy industry
Based on its development process, it is found that leading companies have experienced the process of expanding their business territory from “deep cultivation of a single category” to “M & a”, so as to realize the layout of the global market. The growth path of the above leaders provides an important reference for the future development of Ningbo Boway Alloy Material Co.Ltd(601137) .
Investment suggestion: we expect the operating revenue of Ningbo Boway Alloy Material Co.Ltd(601137) from 2021 to 2023 to be 10.412/13.504/15.435 billion yuan respectively. Due to the improvement of the company’s photovoltaic module business and the adjustment of the profit expectation of new materials and new plants, the net profit from 21 to 23 will be 3.49/5.42/7.76 to 3.70/6.50/859 billion yuan respectively. Give the company 30 times the target PE for 23 years, corresponding to the target price of 32.62 yuan, and maintain the “buy” rating.
Risk warning: the price of raw materials fluctuates greatly; Low conversion rate of R & D industrialization; International operation risk; Risk of rising freight of new energy business
