Ecovacs Robotics Co.Ltd(603486) (603486)
Event: the company announced that it plans to invest in the project of polymer lithium ion battery with an annual output of 2gwh, with an amount of about 1.2 billion yuan. After the land delivery confirmation is signed and the corresponding approval documents are obtained (including but not limited to EIA approval, construction land planning permit, construction project planning, construction permit, etc.), the construction shall be started within 3 months and completed and put into operation within 18 months.
Soft pack lithium battery has a broad use scenario and a forward-looking layout of the upstream core components of household appliances
Suzhou Teding Intelligent Technology Co., Ltd., a subsidiary of the company, invests in Teding new energy (Zhejiang) Co., Ltd., a wholly-owned subsidiary. The products produced by Teding new energy (Zhejiang) Co., Ltd. are soft packed lithium batteries. Soft packed lithium batteries have the advantages of small volume, light weight, large capacity, small internal resistance and high safety factor. They are widely used in 3C digital products, and some are also used in lighting lamps Application on electric tools. Compared with 3C digital products, the volume of smart appliances, smart homes, smart Siasun Robot&Automation Co.Ltd(300024) and other home appliances suitable for soft packed lithium batteries is still small. Battery factories pay less attention to the use and demand of home appliance enterprises, and it is difficult to provide customized products for a single category in small quantities. Therefore, Ecovacs Robotics Co.Ltd(603486) This investment belongs to the forward-looking layout of the leading industry.
Vertical integration of the industrial chain is conducive to cost reduction, efficiency increase and volume expansion
The project plans to put 2gwh into operation. According to our calculation, after being completed and put into operation in 18 months, the capacity of soft packed lithium battery can fully meet the supply of the company’s own Ecovacs Robotics Co.Ltd(603486) and Tianke products, and more than half of the remaining capacity can be used for the company’s own production expansion, category expansion and external supply in the future. From the perspective of product characteristics, in the field of household appliances, soft packed lithium batteries are mainly suitable for equipment with requirements for equipment weight and compact space, such as wireless, lightweight and intelligent products. Household appliances equipped with soft packed lithium batteries will upgrade the products in terms of performance and user experience, which is also one of the directions of iterative evolution of household appliances in the future, We are optimistic about the demand for soft pack batteries in home appliances in the future.
The cooperation of personnel of subsidiaries is expected to help the smooth implementation of the project
Suzhou Tongfan Intelligent Technology Co., Ltd., a subsidiary of Ecovacs Robotics Co.Ltd(603486) was established in October 2006. It has three modules: molding division, electronics division and battery division, and has the design and manufacturing capacity of charging base, peristaltic pump, circuit board and lithium-ion battery pack. The subsidiary TAIDING intelligent, formerly known as the battery division of Suzhou Tongfan Intelligent Technology Co., Ltd., independently established Suzhou TAIDING Intelligent Technology Co., Ltd. in 2017, focusing on the R & D, design, production and sales of lithium battery modules. Both subsidiaries have rich R & D and production experience and have relevant technology and talent reserves for making soft pack batteries, which is expected to help the smooth implementation of investment projects.
Investment suggestions:
We are optimistic about the company’s forward-looking industrial layout as a leading company of clean appliances and household services Siasun Robot&Automation Co.Ltd(300024) . The launch of highly integrated products such as X1 Omni and turbo this year also leads the development of the industry. This layout of soft pack battery capacity is still settled in advance after seeing the development trend of the industry, which plays a positive role in the continuous leadership of production cost, technology and user experience. As the impact of this investment on the company’s revenue performance is still uncertain, we maintain the profit forecast of the third quarterly report. It is expected that the net profit in 21-23 years will be RMB 2.15 billion, 2.84 billion and 3.7 billion, with the corresponding dynamic valuations of 41x, 31x and 23.8x respectively, maintaining the “overweight” rating.
Risk tip: the completion progress of the project is not as expected, the project may lead to financial risks such as reduced cash flow, sales of new products are not as expected, the market penetration growth of clean appliances is not as expected, and the price of raw materials fluctuates greatly
