\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 51 Suzhou Maxwell Technologies Co.Ltd(300751) )
Event overview
The company issued the annual report of 2021. In 2021, the company realized an operating revenue of 3.095 billion yuan, a year-on-year increase of + 35.44%; The net profit attributable to the parent company was 643 million yuan, a year-on-year increase of 62.97%, and the net profit not attributable to the parent company was 597 million yuan, a year-on-year increase of 76.35%.
Analysis and judgment:
Both revenue and profit increased, and the main business continued to grow. The photovoltaic industry continued to maintain a high outlook. Benefiting from the rapid expansion of Cecep Solar Energy Co.Ltd(000591) battery chips, the sales volume of the company’s main product Cecep Solar Energy Co.Ltd(000591) battery complete production equipment increased steadily, resulting in a significant increase in the company’s revenue and net profit attributable to its parent in 2021. In a single quarter, 21q4 achieved a revenue of 910 million yuan, a year-on-year increase of + 35.69% and a month on month increase of – 3.80%; The net profit attributable to the parent company was 187 million yuan, with a year-on-year increase of + 55.54% and a month on month increase of – 8.46%; The net profit after deduction of non return to parent company reached 175 million yuan, with a year-on-year increase of + 50.71% and a month on month increase of – 5.02%. In terms of products, in 2021, the company’s business revenue of Cecep Solar Energy Co.Ltd(000591) battery complete set production equipment was 2.66 billion yuan, a year-on-year increase of + 73.37%, and the proportion of revenue increased by 18.8pct to 85.93% year-on-year. At present, the company still focuses on the complete set of Cecep Solar Energy Co.Ltd(000591) battery screen printing production line; The revenue of stand-alone business was 281 million yuan, with a year-on-year decrease of – 54.54%, and the proportion of revenue decreased by 17.97 PCT to 9.08% year-on-year; The revenue of accessories and other items was 155 million yuan, a year-on-year increase of + 16.20%, and the proportion of revenue decreased by 0.83 PCT to 4.99% year-on-year.
R & D investment continued to increase and profitability was further enhanced
In terms of profitability, the company achieved double increases in gross profit margin and net profit margin. In 2021, the company’s gross profit margin was 38.30%, up 4.28pct year-on-year, mainly due to the company’s continuous expansion of procurement scale and enhancement of bargaining power, so that it can achieve the growth of gross profit margin under the condition of basically unchanged product price. In 2021, the company’s expense rate was 19.18%, an increase of 1.93 percentage points year-on-year, mainly due to the increase of R & D investment. The annual R & D expense of the company was RMB 331 million, with a year-on-year increase of 99.72%, and the R & D expense rate increased by 3.45 PCT to 10.71%. It is mainly used to continuously promote the domestic substitution of raw materials and parts, achieve cost reduction and efficiency increase, go deep into the research and development of new products in semiconductor, hjt, laser cutting and other businesses, and improve product performance through upgrading and iteration. The company’s financial expense ratio and management expense ratio in 2021 were -0.87% / 2.98% respectively, with a year-on-year decrease of 1.50/1.38pct respectively; The sales expense ratio was 6.63%, with a year-on-year increase of 1.36pct. Benefiting from the substantial increase of the company’s gross profit margin, although the expense rate increased slightly, the company’s net profit margin increased by 3.32pct to 20.25% in 2021, and its profitability was further enhanced.
The leading position of screen printing equipment is stable, and hjt whole line equipment is exported overseas for the first time
1) screen printing is the key process of Cecep Solar Energy Co.Ltd(000591) battery production, which affects the output, fragmentation rate, conversion efficiency and other indicators of battery, and can be applied to a variety of processes including perc, TOPCON and hjt. The company has developed cost-effective screen printing equipment, which has been replaced by imports, and the market share in China is firmly in the forefront. The ” Cecep Solar Energy Co.Ltd(000591) battery screen printing complete equipment” has been rated as the single champion product of the national manufacturing industry. In 2021, the company’s investment project “annual output of 50 double head double rail and single head single rail Cecep Solar Energy Co.Ltd(000591) battery screen printing lines” raised by the company’s initial public offering of shares has reached the expected serviceable state and all of them have been put into use, and the production capacity of the company’s screen printing equipment has been effectively improved.
2) hjt battery technology has high conversion efficiency, low power failure, few process steps and clear cost reduction route, which meets the internal needs of the photovoltaic industry. Based on the original screen printing equipment, the company improves and improves hjt screen printing equipment, and independently develops PECVD equipment and PVD equipment required for breaking through the core process of amorphous silicon film deposition and TCO film deposition, By absorbing and introducing the cashmere making and cleaning technology of YAC from Japan, the joint-stock subsidiary has the whole line supply capacity of hjt battery equipment, and signed an order for 400MW heterojunction battery whole line equipment with rec group in December 21, realizing the first export. As of December 25, 2001, the company’s orders for heterojunction equipment were about 1.8 billion yuan, which has been accepted by some customers, and the key technical indicators such as equipment stability, capacity and conversion rate have performed well.
Actively carry out the layout of new fields, and make concerted efforts in semiconductor and panel equipment
1) the company maintains the technical advantages and customer resources of Cecep Solar Energy Co.Ltd(000591) battery production equipment, and successively develops semiconductor packaging core equipment, display panel core equipment, etc. In the past 21 years, the company has successively signed supply agreements with semiconductor chip packaging manufacturing enterprises Jcet Group Co.Ltd(600584) , Sanan Optoelectronics Co.Ltd(600703) on semiconductor wafer laser slotting equipment, and signed trial orders with five other enterprises. At present, the laser slotting equipment independently developed by the company has been delivered to Jcet Group Co.Ltd(600584) and mass production has been realized, and the laser modified cutting equipment has also entered the prototype commissioning stage.
2) in terms of display panel equipment, in December 21, the company won the bid for the 6th generation AMOLED production line project of BOE, a leading Chinese display panel enterprise, and will supply two sets of independently developed OLED flexible screen bending laser cutting equipment, which will be applied to the smartphone flexible AMOLED panel production lines of BOE Mianyang factory and BOE Chongqing factory respectively, Manufacture high-end display screens for world-famous mobile phone brands.
Investment advice
Hjt track has strong certainty, and the company is expected to fully benefit. We raised the company’s revenue forecast of 4.222/5.751 billion yuan from 2022 to 2023 to 4.465/6.027 billion yuan; Raise the forecast of net profit attributable to parent company of RMB 610 / 862 million from 2022 to 2023 to RMB 853 / 1162 million; Raise the EPS forecast of 5.65/7.98 yuan from 2022 to 2023 to 7.89/10.75 yuan; At the same time, it is estimated that the company’s revenue and net profit attributable to the parent company in 2024 will be RMB 8.530/1.685 billion respectively, and the corresponding EPS will be RMB 15.59. Corresponding to the closing price of 546.54 yuan / share on March 11, 2022, PE is 69 / 51 / 35 times from 2022 to 2024. We maintain the “overweight” rating.
Risk tips
The prosperity of downstream industries is less than expected, the technological progress is less than expected, and the order growth is less than expected.
