\u3000\u3 China Vanke Co.Ltd(000002) 860 Hangzhou Star Shuaier Electric Appliance Co.Ltd(002860) )
Event: on March 16, 2022, the company issued a suggestive announcement on the planning of major events. It plans to publicly issue convertible corporate bonds to unspecified objects and invest in the construction of 2gw high-power generation Cecep Solar Energy Co.Ltd(000591) photovoltaic module project by means of its own funds and bank financing.
Comments:
Raise funds for 2gw high power generation module project and greatly expand the existing capacity. The company’s subsidiary fule new energy photovoltaic module expansion phase I project “annual output of 1GW photovoltaic module project” has been successfully completed and put into operation in January this year, and the total production capacity of fule will gradually climb to 1.5gw/year. The issuance of convertible bonds to raise funds and invest in the construction of 2gw high power generation component project is in line with the company’s investment plan and business planning. According to the disclosure in the earlier investment agreement, the fixed asset investment of the project is expected to be about 200 million yuan. If the matter goes smoothly, we expect that the phase II project “photovoltaic module project with an annual output of 2gw high power generation” will be completed as early as the end of this year and put into operation in the first half of next year. By then, the total capacity of the company will reach 3.5gw/year, and the existing capacity will be greatly expanded. On the one hand, the scale of the company’s revenue will increase significantly. On the other hand, after the expansion of the production scale, the scale effect will reduce the production cost, and the net profit of the company’s photovoltaic module business is expected to increase significantly.
The company has sufficient orders in hand, and the development of the second main line is about to take off. At present, fule new energy has sufficient orders for photovoltaic modules. At the domestic end, in addition to signing a cooperation agreement with Taiheng new energy, which stipulates that Taiheng new energy will purchase no less than 5GW Cecep Solar Energy Co.Ltd(000591) modules from fule new energy, it has also recently established a supply relationship with Anhui Daheng. At the export end, with the easing of the shipping situation, the company’s foreign export orders gradually increased. Meanwhile, according to the company’s disclosure, other potential high-quality customers, including dongci, Shunfeng and Jingke, have also completed the factory inspection of fule new energy, and the company’s competitiveness and popularity in the photovoltaic sector have been continuously improved. In the future, the company will not rule out the layout of components upstream and downstream, such as power stations, battery chips, materials and other fields, expand the territory of new energy business, and create the second main line for the long-term sustainable development of the company.
Profit forecast and investment rating: the company adheres to the development strategy of “one body and two wings”. While the main business of household appliance refrigeration parts is developing steadily, the company actively arranges the photovoltaic new energy business, continues to practice the road of industrialization transformation, and creates the second growth point of revenue and performance. We expect the operating revenue of the company in the 21st-23rd years to be RMB 1.464/32.92/5.056 billion respectively, with a year-on-year increase of + 57.9% / + 124.9% / + 53.6% respectively; The net profit attributable to the parent company was RMB 152 / 205 / 266 million, with a year-on-year increase of + 41.1% / + 34.7% / + 29.6% respectively, and the corresponding PE was 24.80/18.38/14.18 times. Maintain the “buy” rating.
Risk factors: the price of raw materials continues to rise, the demand of downstream white power industry is lower than expected, the change of photovoltaic industry policy, the acquisition of orders outside China is lower than expected, the profitability of the company is lower than expected, etc.
