Suwen Electric Energy Technology Co.Ltd(300982) (300982)
Key investment points
EPC leader of distribution network in Jiangsu: the company undertook the consulting and design outsourcing project of Electric Power Design Institute at the beginning of its establishment in 2007. In 2016, it obtained the corresponding qualification to carry out the household end power distribution EPC project. So far, it has the one-stop EPCO power service capacity. The company is deeply engaged in Jiangsu market, and its local revenue accounts for nearly 90% in 2020. After listing, the company actively expanded its overseas business and gradually realized the nationwide layout through close cooperation with large groups such as real estate enterprises and new energy manufacturers. This year, the company established a wholly-owned subsidiary of “Guangming top” new energy, which is expected to make some gains in the EPCO market of photovoltaic projects.
The o-end layout is complete and benefits from the wave of energy Digitization: the company has built two platforms Suwen Electric Energy Technology Co.Ltd(300982) Xia and Franklin for the operation of power projects. The power man platform is an energy management system, which can visually display customers’ comprehensive energy use and generate data reports. Under the carbon emission reduction management system with dual control of energy consumption in China, the enterprise end energy management system will become the infrastructure of energy digitization, and its penetration rate is expected to increase rapidly. Franklin platform is an industry pain point to solve the high operation and maintenance cost caused by the complexity of substation system, and share the o-end value creation by means of digital transformation of key customers’ energy, unmanned system front-line hosting of substation in the park, etc.
Cut into the channels of low-voltage general equipment and network weaving dealers: in October, the wholly-owned subsidiary Siebel invested 85 million yuan and held 85% shares, and established a joint venture with Jiangsu Luokai to explore the manufacturing of transmission and distribution equipment. Jiangsu Luokai has a strong supply and service capacity in the fields of circuit breakers, transmission and distribution switches, so that the company can cut into the production of low-voltage general equipment and build a national dealer network, which can not only meet its own equipment supporting needs, but also pave the national market channel.
Investment suggestion: our company predicts that the earnings per share from 2021 to 2023 will be 2.25 yuan, 3.07 yuan and 4.18 yuan respectively. The return on net assets is 21.1%, 23.1% and 24.9% respectively, which is covered for the first time, and Buy-A suggestions are given.
Risk tip: the recovery of accounts receivable in the real estate industry may face risks, the fluctuation risk of power grid investment, and the company may expand outside the province or face the risk of intensified competition
