Guangzhou Goaland Energy Conservation Tech Co.Ltd(300499) (300499)
Deep plough communication equipment, pure water cooling, new energy, IDC, energy storage and other fields: since its establishment in 2001, the company has developed, designed, produced and sold pure water cooling equipment and control system for deep plough power electronic devices. It is a major supplier of DC converter valve water cooling and new energy power generation water cooling products in China, with a high market share. The application fields of the company’s products are expanding from traditional DC transmission, new energy power generation, flexible AC transmission and distribution and high-power electrical transmission to petroleum and petrochemical, rail transit, military ships, medical equipment, data center and energy storage power station. It is one of the few enterprises in China that can provide cross domain pure water cooling solutions. According to the company’s 2020 annual report, after years of accumulation and development, the company has established long-term and stable cooperative relations with well-known Chinese customers such as Xi’an XD, CLP Purui, Changzhou Borui, Xj Electric Co.Ltd(000400) , Xinjiang Goldwind Science And Technology Co.Ltd(002202) , vision energy and so on; In 2012, the company officially became a qualified supplier of Ge; In recent years, it has successively carried out good cooperation with large international transmission and distribution enterprises such as Siemens and ABB group.
Benefiting from “new infrastructure” + “double carbon”, UHV + new energy continues to contribute Revenue: UHV DC transmission water cooling equipment and new energy power generation water cooling equipment currently contribute most of the company’s revenue. According to the research on China’s electric power development plan during the 14th Five Year Plan period, seven new UHV DC power transmission projects from northwest and southwest energy bases will be built in Western China, with a total transmission capacity of 56 million KW. By 2025, China will have 23 UHVDC projects with a total transmission capacity of 180 million KW. At the same time, China Myanmar Bangladesh, China Laos, China Nepal China Korea (Japan), China Mongolia and other power grid interconnection projects. Pure water cooling equipment is a key supporting equipment in the field of UHV transmission, which is expected to benefit fully. In terms of new energy, China’s power shows a rigid demand for continuous growth, and the proportion of installed capacity of non fossil energy power generation will continue to increase. According to the report of China Electricity Council, it is expected that China’s installed capacity of non fossil energy power generation will increase by the end of 2021 The installed capacity reached about 1.12 billion kw, accounting for 47.3% of the total installed capacity. With the improvement of wind turbine power and photovoltaic power generation unit capacity, the cooling mode of converter, generator and inverter gradually transits from traditional air cooling to water cooling. The company has rich project experience in Xinjiang Dabancheng, Swedish wind power, Beijing Guanting wind power, Dubai photovoltaic and other projects, and has strong competitiveness.
Dongguan Sixiang was acquired to enter the field of power battery thermal management and automotive electronics manufacturing of new energy vehicles to form business synergy: the rapid growth of production and sales of new energy vehicles drives the significant increase of power battery output and loading volume, and the industrial scale effect promotes the mass production of key parts of power battery thermal management. Because the battery system of new energy vehicles is more sensitive to temperature changes, the battery thermal management system controls the temperature of the battery system by cooling or heating, which is directly related to the safety, performance and service life of the battery; At the same time, the battery status of new energy vehicles, such as voltage, temperature and current, needs to be monitored in real time, accurately and reliably, and the acquisition harness needs to be used. Therefore, the demand for heating film, thermal insulation cotton and other products and FPC flexible circuit board has been significantly increased with the increase of power battery loading. In the future, with the popularization of new energy vehicles, the requirements for performance stability and safety of power batteries will be more stringent, and the penetration rate of battery thermal management products will be significantly improved. The company acquired 51% equity of Dongguan Sixiang insulation material Co., Ltd. in 2019. Dongguan Sixiang specializes in the R & D, production and sales of new energy power battery heating, heat insulation, heat dissipation and automotive electronics manufacturing products. Since its establishment, it has accumulated high-quality customer resources in new energy vehicle related industries such as Contemporary Amperex Technology Co.Limited(300750) , Gotion High-Tech Co.Ltd(002074) , AVIC lithium battery, Eve Energy Co.Ltd(300014) , Byd Company Limited(002594) . The company shares resources with Dongguan Sixiang, and actively participates in and reserves liquid cooling components, integrated products and vehicle thermal management system projects. By the end of 2020, the company has completed the testing of the second generation products and the design of the third generation products of power battery independent liquid cooling system, and completed the scheme design and product development of a variety of battery pack liquid cooling panels, Continuously promote the system architecture and scheme design of vehicle thermal management system project.
IDC / energy storage business benefits from the “double carbon” policy: for IDC, under the “double carbon” policy, IDC will implement the pue reduction policy, and the computer room cooling system is an important link in reducing pue in the data center. Gaolan innovation technology, a holding subsidiary, focuses on thermal management and information and communication of new energy vehicles (ICT) in the field of thermal management, we have successively realized the sample and small batch supply of products related to power battery liquid cooling, thermal management unit and server liquid cooling, which is expected to continue to benefit from high-profile application scenarios such as cloud computing. In terms of energy storage, the rising demand for electrochemical energy storage will drive the expansion of the demand for thermal management of energy storage batteries. The company continues to invest in research and development in the thermal management technology of energy storage batteries, At present, there are technical reserves and solutions based on lithium battery single cabinet energy storage liquid cooling products, liquid cooling system of large energy storage power station, prefabricated cabin energy storage liquid cooling products, and a small number of prototype contracts have been signed.
Investment suggestion: the company is the leader of pure water cooling products for communication equipment in China, and has developed into a pure water cooling equipment supplier with leading technology level, complete product line and large-scale production in China. We estimate that the company’s operating revenue from 2021 to 2023 will be 1.43 billion yuan (+ 16.5%), 2.22 billion yuan (+ 55.0%) and 3.08 billion yuan (+ 38.7%) respectively; The expected net profit attributable to the parent company is RMB 100 million (+ 18.7%), RMB 190 million (+ 92.5%) and RMB 290 million (+ 56.2%) respectively. Considering the company’s history and comparable company valuation, we give the company 34 times PE in 2022, corresponding to the target price of 22.41 yuan in 2022, maintaining the “Buy-A” investment rating.
Risk tips: risks of changes in national industrial policies in the fields of high voltage transmission and new energy power generation, intensified competition in China’s DC products, expansion of new product development and new application fields, and changes in policies related to the new energy vehicle market
