Hangzhou Sunrise Technology Co.Ltd(300360) (300360)
Focus on the energy Internet of things, with complete solutions. Hangzhou Sunrise Technology Co.Ltd(300360) is positioned as a comprehensive energy solution service provider, which uses the Internet of things system to drive the development of intelligent electricity meters, intelligent water meters, intelligent electricity, energy cloud edge routers, Internet of things sensors and other Internet of things remote terminals, and promote the application of animal networking products and services in the fields of public energy, water, electricity, gas and heat. The company’s share of smart meter business in power grid bidding remains stable, and vigorously develops smart water meter and user side energy consumption monitoring and management business.
Power Internet of things and digital power grid demand for dynamic layer equipment. Smart meters are compulsory verification measuring instruments, and their verification cycle generally does not exceed 8 years. Starting from 2018, the first round of smart meter construction began to enter the peak of replacement, and the total bidding amount of smart meter of state grid was in the rising channel as a whole. In 2020, the second batch of bidding began, and the State Grid began to fully implement the 698-ir46 smart meter. Compared with the previous generation of electricity meters, in addition to the implementation of “dual core” (metering chip + management chip), functions such as remote meter reading and power quality monitoring are also added, and the value of single meter is generally increased by 30% – 50%. In the first 11 months of 2021, the total bidding amount of State Grid intelligent electricity meters reached 20 billion yuan, an increase of 50% over the whole year of 2020.
Under the background of carbon neutralization, the intelligent power system ushers in a new era. Energy saving and consumption reduction is an important path to achieve “carbon peak and carbon neutralization”. The action plan for carbon peak before 2030 issued by the State Council proposes to improve the informatization level of energy conservation management and improve the on-line monitoring system for energy consumption of key energy users. Under the background of “dual control” of energy consumption, the demand for energy conservation and consumption reduction on the user side is growing rapidly, and the energy efficiency monitoring and energy efficiency management business has ushered in new and broader development space. Shanghai Nayu electric, a subsidiary, was established in 1993. It is mainly engaged in energy Internet of things business and provides comprehensive services to more than 1000 customers. Its main businesses include rail transit, building parks, schools and hospitals, data centers, new energy and other industries. By the end of 2020, Nayu electric energy consumption management system has covered more than 80 subways in China, far ahead of the market share in the field of rail transit in China.
Profit forecast, valuation and rating: we estimate that the company’s operating revenue in 2021-23 will be RMB 1.24/16.4/2.21 billion respectively, the net profit attributable to the parent company will be RMB 3.0/4.1/530 million respectively, and the corresponding EPS will be RMB 0.59/0.80/1.04. The current share price corresponds to 25 / 18 / 14 times of PE in 21-23 years respectively. Referring to the results of relative valuation and absolute valuation, considering that the company’s share in the bidding of power grid smart meters is stable, it is expected to continue to benefit from a new round of business cycle. The company vigorously develops energy consumption management system, which has broad development prospects under the background of “dual control” of energy consumption. The first coverage is given a “buy” rating.
Risk tip: the bidding amount of power grid is less than expected, the expansion of energy consumption monitoring system is less than expected, and the price of raw materials increases.
