\u3000\u3 China Vanke Co.Ltd(000002) 897 Wenzhou Yihua Connector Co.Ltd(002897) )
The size of China's connector market is expected to reach US $29 billion in 2022, and the company's high-speed connector has the first mover advantage: according to the prediction of China Business Industry Research Institute, the size of China's connector market has increased from US $14.7 billion in 2015 to US $29 billion in 2022, with CAGR of 10.2%. With the advantages of low cost, close to customers and flexible response, Chinese manufacturers are gradually expanding their share in the international connector market. The company has established long-term partnership with many famous enterprises in the world, such as Huawei, ZTE, Foxconn, Honeywell, Flextronics, anbofu, Zhibang, Qiji, Heshuo, Hangzhou Hikvision Digital Technology Co.Ltd(002415) , oppo, Xiaomi, APTIV, Huawei, GKN, Byd Company Limited(002594) , Geely and so on. In the field of high-speed communication connectors, the company grasps the development opportunities of the industry and focuses on the R & D and manufacturing of 5g, 6G and optical communication modules. 5gsfp and SFP + series products with complete independent intellectual property rights have been successfully developed and passed various performance tests of key customers. The technical R & D ability and lean production level are in the leading position in the industry. At present, the company is one of the few enterprises in China to realize mass production of high-speed connectors.
In 2025, the global photovoltaic tracking bracket market space is expected to be close to 60 billion yuan, and the company's Cecep Solar Energy Co.Ltd(000591) bracket business revenue accounts for 44.3%. According to woodmackenzie data, the global photovoltaic tracking bracket shipment will reach 44gw in 2020. According to the prediction of Huajing Industry Research Institute, the global PV tracking support shipment will reach 110gw in 2025, with a market space of nearly 60 billion yuan. In the future, the increase of new installed capacity of photovoltaic will continue to drive the market demand of photovoltaic tracking support. In October 2019, the company acquired 100% equity of Yihua new energy and entered the photovoltaic tracking support business. Core customers include nextracker, gamechangesolar, FTC and other leading manufacturers in the field of global photovoltaic systems. In 2020, nextracker accounted for 29% of the global PV tracker shipments, ranking first in the market. Other customers of the company, such as gamechangesolar and FTC, are among the best. In November 2020, Yihua new energy invested and established a Tianjin subsidiary to support the expansion of the company's photovoltaic support business in the Chinese market. At present, the Tianjin subsidiary has Trina Solar Co.Ltd(688599) . In July 2021, the company acquired Shengwei new energy technology development (Tianjin) Co., Ltd. to deepen China's layout. The operating revenue of 2021h1 company from Cecep Solar Energy Co.Ltd(000591) support business reached 850 million yuan, accounting for 44.3%. The Cecep Solar Energy Co.Ltd(000591) bracket of the company has entered a period of rapid development, which will inject new vitality into the development of the company.
Independent development of precision molds and obvious production capacity advantages: the company has the advantage of independent development of precision molds. At present, the precision of machining mold parts can reach 0.002mm, and has the ability to develop 128 hole precision molds with one mold, which has reached the leading level in the precision connector mold industry. At the same time, the company organizes mold development and production in the way of assembly line operation. All parts strictly divide their work and cooperate to strengthen the efficiency of mold development and shorten the mold opening cycle, so that the company has the ability to respond quickly to the needs of customers. The general mold development cycle of the company is 25 days, and the development cycle of some mold samples can reach less than 7 days at the fastest. The company has sufficient capacity reserves. According to the company's official website, the production capacity of the company's plug series products ranks first in the same industry, with a market share of 40% in 2020, an annual production capacity of about 1 billion PCs and an annual output value of about 80 million. Socket series products are produced in Wenzhou and Dongguan production bases respectively, with an annual production capacity of about 800 million pcs and an annual output value of about 600 million PCs. The company's R & D strength, production capacity and independent development advantages will provide guarantee for the company's performance growth.
Investment suggestion: we estimate that the operating revenue of the company from 2021 to 2023 will be 4.319 billion yuan (+ 32.2%), 5.556 billion yuan (28.6%) and 6.912 billion yuan (+ 24.4%) respectively; It is estimated that the net profit attributable to the parent company is 192 million yuan (+ 6.4%), 314 million yuan (+ 64.0%), 424 million yuan (+ 34.9%), and the corresponding EPS is 1.12/1.84/2.48 yuan respectively. We use the segment valuation method to value the company. It is estimated that the target market value of the company in 2022 will be 8.445 billion yuan, corresponding to pe26.6 billion yuan in 202289 times, corresponding to the target price of 49.48 yuan in 2022, maintaining the "Buy-A" investment rating.
Risk tips: risks of intensified market competition, less than expected market demand, less than expected new technology research and development and new product development, fluctuations in raw material prices and exchange rate fluctuations
