Yingkou Jinchen Machinery Co.Ltd(603396) (603396)
Key investment points
Completion of equity incentive Grant: bind the core personnel of the company; The performance will be accelerated in the next year and the next, with a year-on-year increase of 50% / 60%
On December 21, the company announced that it would grant stock options and restricted stocks to incentive objects for the first time. Initial awards include:
1) Stock options: 797300 shares in total, accounting for 73% of the total incentive grant proportion, and the exercise price is 117.13 yuan / share.
2) Restricted shares: 293200 shares in total, accounting for 27% of the total incentive grant proportion, and the grant price is 58.57 yuan / share.
3) Equity incentive fee: the underlying share price on the grant date is 134.64 yuan / share. Corresponding to the total amortization expenses of the company’s stock options + restricted shares from 2021 to 2024, they are 763500 yuan / 27396900 yuan / 10541800 yuan / 4169700 yuan respectively.
4) Incentive performance target value: the performance target values from 2021 to 2023 are RMB 1 / 1.5/240 million respectively, with a year-on-year increase of 20% / 50% / 60%. The company’s performance accelerated in 2022, and the judgment increment mainly comes from photovoltaic cell equipment (including TOPCON equipment and heterojunction equipment).
Heterojunction equipment: the first PECVD equipment has landed in Jinneng, looking forward to another breakthrough; Open the growth space of the company’s battery equipment
1) The first PECVD equipment for hjt has been delivered to Jinneng technology, which is of great strategic significance: Jinneng is the first leading enterprise in China to enter the hjt battery industry. It indicates that the company’s heterojunction equipment has been recognized by downstream customers, and we look forward to another breakthrough in the progress of the company’s heterojunction equipment.
2) Technical strength: the company and Germany h2gemini (the core members have worked in applied materials, meyerberg, Schmidt, etc.) set up Jinchen Gemini as a joint venture, with leading technical strength + equity mechanism in the industry. PECVD equipment has the advantages of large capacity and low cost, and the progress is expected to exceed the market expectation. The company has issued 380 million fixed increase for the development of photovoltaic heterojunction PECVD equipment, which will form an annual production capacity of 20 equipment.
TOPCON equipment: help Ningbo Institute of Chinese Academy of Sciences achieve 25.53% efficiency; Tubular PECVD has been imported by 3 customers in total
1) Since 2019, the company has cooperated with the team of Ningbo Institute of materials, Chinese Academy of Sciences to develop mass-produced tubular PECVD equipment, which can greatly optimize the key process of TOPCON battery and significantly reduce the manufacturing cost, and meet the mass production demand in terms of equipment maintainability. In November, the efficiency record of 25.53% obtained by Ningbo Institute of Chinese Academy of Sciences was strongly supported by Yingkou Jinchen Machinery Co.Ltd(603396) and its subsidiary Suzhou Tuosheng.
2) The company’s TOPCON tubular PECVD has been imported into 3 customers in total: since 2019, the company’s TOPCON technology has been imported into Jingke, Jingao and Risen Energy Co.Ltd(300118) 3 customers. The company mass produces n-type TOPCON cells with an average efficiency of > 24% (maximum efficiency of 24.5%). At the same time, it has also made a breakthrough in the development of two in one equipment. It is a very few mass-produced core equipment for photovoltaic with completely independent intellectual property rights developed by overseas equipment manufacturers in China, which has attracted great attention from the industry.
It is expected that in the next few years, the market will have large-scale demand for new production capacity of TOPCON or upgrading of perc stock, and the company will fully benefit.
Profit forecast
It is estimated that the net profit of the company from 2021 to 2023 will be 1 / 17 / 250 million yuan, with a year-on-year increase of 25% / 65% / 45%, corresponding to 152 / 92 / 63 times of PE. Considering the scarcity of the company’s photovoltaic heterojunction equipment, the “buy” rating is maintained.
Risk tip: photovoltaic demand is lower than expected; The propulsion speed of heterojunction battery is not as expected; The downstream expansion was less than expected.
