Shenzhen Desay Battery Technology Co.Ltd(000049) (000049)
Core view
Event: the company announced that it plans to establish a joint venture holding subsidiary to carry out energy storage cell business and complete the extension from power management system and packaging integration business to cell business.
Joint venture to establish subsidiaries and intervene in energy storage cells: the company plans to establish a holding subsidiary in the form of joint venture, with the company holding 70%, the participation of strategic investors not less than 27% and the management holding no more than 3%. The company has entered a high-quality track in the energy storage industry. Under the background of "double carbon", photovoltaic wind power and other new energy are developing rapidly. In the future, under the new power system dominated by new energy, the energy storage industry will have a great demand for energy storage. The energy storage industry is a trillion level track, and is expected to have a long-term high growth in the future. At present, the growth of the energy storage industry has been started. We expect the compound growth rate of the energy storage industry to exceed 50% from 2021 to 2025. Energy storage is the top priority of the company's future development. At this stage, the company's main energy storage business is power management system and packaging integration business, covering small 5g base station energy storage, data center (IDC) energy storage, household energy storage and large industrial energy storage. It is the fastest growing business field of the company.
The company's energy storage business can grow in the future: the company has two business segments: consumer electronics and energy storage. In the consumer electronics sector, the company is the main supplier of the supply chain of international well-known brands and is expected to continue to grow in the future; The company's energy storage is the main supplier of China's first-line enterprises, accounting for a high proportion and growing rapidly in the future. The subsequent introduction of energy storage cells is expected to support the expansion of energy storage revenue several times, and is expected to become a rapid growth point of the company's revenue and profit in the future.
Profit forecast and Valuation: the company is gradually completing the upgrading and transformation of its business. The energy storage business is the focus of future development. In the future, the growth rate is fast and the space is large, and the profit is expected to continue to improve. We are optimistic about the company's long-term growth. It is estimated that the company's revenue from 2021 to 2023 will be RMB 209.61/237.06/27.468 billion respectively, and the net profit attributable to the parent company will be RMB 808/10.37/13.37 billion, corresponding to PE of 19.2/15.0/11.6 times, giving the company a "buy" rating.
Risk warning: the development of energy storage industry is not as expected; The company's energy storage sector is not progressing as expected; Product prices fell more than expected.
