Dongfang Electronics Co.Ltd(000682) (000682)
Smart grid boom, "little giant" rises in the wind
As a small giant of smart grid, the company ranks in the forefront of the industry in the fields of distribution network, dispatching and smart meter. We believe that the company is expected to benefit from the high prosperity of smart grid under the background of "double carbon". We expect that the net profit attributable to the parent company from 2021 to 2023 will be 337 million yuan, 411 million yuan and 506 million yuan respectively, and the EPS will be 0.25, 0.31 and 0.38 yuan / share respectively, corresponding to 36.2, 29.7 and 24.1 times of the current share price PE respectively. It will be covered for the first time and given a "buy" rating.
The investment in power grid driven by "double carbon" remains high, and we are optimistic about the opportunities of distribution network and dispatching construction
"Double carbon" gave birth to the high boom of power grid investment. According to the 2020 social responsibility report of the State Grid, the power grid investment of the State Grid in 2021 is expected to be 473 billion yuan, up from 460.5 billion yuan in 2020. According to the power grid development plan of China Southern Power Grid during the 14th Five Year Plan period, the power grid investment of China Southern Power Grid during the 14th Five Year Plan period was about 670 billion yuan, an increase of more than 50% over the total power grid investment of 440 billion yuan during the 13th five year plan period. As a supporting platform for new energy consumption, distribution network is expected to become the core of power system construction. State Grid in the action plan for building a new power system with new energy as the main body (2021-2030) According to the plan, the investment in the construction of power distribution network in the 14th five year plan exceeds 1.2 trillion yuan, accounting for more than 60% of the total investment in power grid construction. According to the 14th five year plan of China Southern Power Grid, the investment in distribution network is 320 billion yuan, accounting for about 50% of the total investment in power grid. In August 2021, China Southern Power Grid issued the first operation and management regulations for network level distribution network dispatching, which provides norms for industrial construction and is expected to accelerate the implementation of distribution network dispatching automation business.
The company has a wide range of products and a leading market share
The company has an in-depth layout of the whole industrial chain of smart grid, with obvious leading advantages. In the field of dispatching, the company has a leading market share in regional dispatching centers and a leading position in China Southern Power Grid System; In terms of power distribution, the company is one of the seven major power distribution master station suppliers of the State Grid, and its products are distributed in many power distribution automation master stations throughout the country; In terms of power consumption, the company's products have been applied in many provincial and municipal metering systems, and the charging piles cover Zhaoqing, Zhuhai and other cities.
The performance has entered the channel of rapid growth, and the long-term space can be expected
In 2021, the bid winning amount, number of bid winning packages and provinces covered by the subsidiary Weston in the national grid energy meter project reached a record high. The company won 11 packages in the function development project of dispatching automation master station system of China Southern Power Grid, with a total amount of about 52.1022 million yuan, and won the highest bid among the existing master station manufacturers of China Southern Power Grid. We believe that the company has full orders in hand and is expected to take the east wind of smart grid construction in the long term and enter the channel of high performance growth.
Risk tip: the investment landing of smart grid is less than the expected risk, and the company's technology research and development is less than the expected risk
