\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 51 Suzhou Maxwell Technologies Co.Ltd(300751) )
Key investment points:
Suzhou Maxwell Technologies Co.Ltd(300751) disclose the annual report of 2021. In 2021, the company realized an operating revenue of 3.095 billion yuan, an increase of 35.44% year-on-year; The net profit attributable to the shareholders of the parent company was 643 million yuan, a year-on-year increase of 62.97%; The non net profit deducted attributable to the shareholders of the parent company was 597 million yuan, an increase of 76.35% year-on-year; The basic earnings per share is 6.26 yuan.
High growth in the annual report benefited from strong downstream demand and substantial growth in equipment delivery
In 2021, the operating revenue reached 3.095 billion yuan, an increase of 35.44% year-on-year; The net profit attributable to the shareholders of the parent company was 643 million yuan, a year-on-year increase of 62.97%. The performance increased rapidly and compounded expectations.
Benefiting from the high prosperity of the photovoltaic industry for many years, the sales volume of the company’s products increased steadily. In 2021, 393 sets of Cecep Solar Energy Co.Ltd(000591) battery complete sets of production equipment were sold (screen printing was counted by single track), with a year-on-year increase of 46.1%.
The gross profit margin of the company increased by 4.28pct, the profitability was significantly enhanced and the cash flow was good
In 2021, the gross profit margin of the company’s overall sales was 38.3%, with a year-on-year increase of 4.28pct; The net interest rate was 20.25%, with a year-on-year increase of 3.32pct and deduction of non net interest rate of 19.28%, with a year-on-year increase of 4.47pct. The increase in profitability is mainly due to the company’s continuous R & D and cost reduction, domestic substitution of raw materials and parts, the continuous rise of procurement scale and the increase of bargaining power, which makes the gross profit margin of the company’s products increase while keeping the price basically unchanged.
In 2021, the company’s weighted roe was 24.74%, a slight decrease of 1.19pct over last year. The main reason is that the company has developed rapidly and its net assets have increased rapidly. In addition, it has just completed the fixed increase and has abundant cash on hand. The net assets of the company increased by 236.83% in 2021. Various profitability indicators of the company have been greatly enhanced.
In 2021, the company’s net operating cash flow was 657 million, with a year-on-year increase of 75.27%, basically synchronized with the net profit attributable to the parent company, and the company’s operating cash flow was good.
In the 2021 annual report, the contract liabilities and inventories increased significantly, the company’s orders were full and the performance was worry free. In 2021, the company’s contract liabilities were 2.41 billion yuan, a year-on-year increase of + 50%, and the inventory was 2.81 billion yuan, a year-on-year increase of + 34%, including 1.91 billion yuan of goods issued. The contract liabilities increased significantly, and the inventory, especially the goods issued, increased rapidly, indicating that the company’s orders increased rapidly and will be transformed into income.
Heterojunction cells are getting better and better. As the absolute leader of the whole line equipment, the company fully benefits
Compared with the mainstream perc battery technology in the current market, hjt battery technology still has a gap in technology maturity, capacity scale, equipment investment cost and battery production cost. However, with the continuous breakthrough in the battery efficiency of hjt battery, the difference between hjt and perc battery efficiency is opened. At the same time, the localization of key process equipment such as PECVD and PVD is continuously realized to reduce the capital cost. In addition, hjt continues to reduce the single watt cost of battery in terms of low-temperature silver slurry consumption, target consumption, cashmere additives and silicon wafer slicing. It is expected that hjt’s technical route will achieve economic breakthrough and finally be fully industrialized in the next few years. The company made a forward-looking layout and invested in the research and development of relevant projects earlier, realizing the whole line supply capacity of hjt battery equipment. In 2021, the overall market order of China’s hjt reached 8.1gw, an increase of 330% over 2020, of which the company’s market share reached 72%, which is the absolute leader of the whole line equipment of hjt. With the decline of the technical cost of hjt battery and gradually becoming the mainstream technical route, the company will fully benefit.
The semiconductor packaging equipment and display panel equipment laid out by the company for many years have gradually made a breakthrough, which is expected to create a new growth point
In recent years, relying on the technical advantages and customer base of high-speed and high-precision control technology and high-precision positioning technology, and with years of R & D technology accumulation, the company has successfully developed semiconductor packaging equipment and display panel equipment, and achieved rapid development. In 2021, the company 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) , which has achieved stable and reliable mass production at the client.
In terms of display panel equipment, 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 cut 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.
Semiconductor equipment and panel equipment are a new big market. The company cuts into new markets and expands new growth points, which is expected to smooth performance fluctuations and build a platform enterprise of non-standard equipment.
Profit forecast and valuation
With the continuous reduction of cost, hjt battery is getting better and better, and is about to face large-scale industrial nodes. The company has in-depth layout of the whole line equipment of hjt battery chips and has the supply capacity of the whole line equipment. In 2021, the market share is more than 70%, occupying an obvious first mover advantage, and is expected to fully benefit from the tide of hjt industry. We predict that the operating revenue of the company from 2022 to 2024 will be 4.526 billion, 6.605 billion and 9.296 billion respectively, and the net profit attributable to the parent company will be 906 million, 1.245 billion and 1.742 billion respectively. The corresponding PE will be 63.3x, 46.06x and 32.92x respectively, and continue to maintain the “buy” rating.
Risk tips: 1: the prosperity of photovoltaic industry is declining; 2: Hjt cell penetration is less than expected; 3: The rising price of raw materials and the shortage of components affect the company’s product delivery and gross profit margin.
