\u3000\u3 Guocheng Mining Co.Ltd(000688) 559 Shenzhen Hymson Laser Intelligent Equipments Co.Ltd(688559) )
Events
On March 19, the company announced that it had successively received the letter of acceptance of laser die-cutting machine, assembly line and assembly section projects issued by Eve Energy Co.Ltd(300014) with a total bid winning amount of about 433 million yuan.
Investment advice
The company won the bid of Eve Energy Co.Ltd(300014) 430 million large orders at a good start. It is expected that the number of new orders signed throughout the year will continue to grow rapidly
From January 27 to the announcement date, the company successively received the letter of acceptance from Hubei Yiwei Power Co., Ltd. and its holding subsidiary Jiangsu Yiwei Linyang Energy Storage Technology Co., Ltd. the winning projects include laser die-cutting machine, assembly line and assembly section, with a total amount of about 433 million yuan. We expect that in the bidding project of Eve Energy Co.Ltd(300014) Hubei base, the company will obtain more than half of the market share of laser die cutting and cell assembly line. The company has three production bases in Changzhou, Jiangmen and Shenzhen. After the completion of the new Jiangmen phase II project, the annual output value is expected to reach more than 10 billion yuan, and the order undertaking capacity will be greatly improved. By the end of December 2021, the company’s orders for power batteries, lasers and automation equipment were about 4.8 billion yuan (including tax). We expect that the new orders signed by the company in 2022 will still achieve rapid growth on the basis of 2021.
The performance in 2021 was in line with expectations, excluding equity incentive expenses, and the net profit attributable to the parent company was + 97% year-on-year
The company’s performance express shows that in 2021, the company achieved an operating revenue of 1.97 billion yuan, a year-on-year increase of 49%; The net profit attributable to the parent company was 108 million yuan, a year-on-year increase of 39.6%. The annual net interest rate was 5.5%, a year-on-year decrease of 0.36 PCT, mainly due to the provision of 43.57 million equity incentive expenses. Excluding the impact of equity incentive fee payment, the company realized a net profit attributable to the parent company of 152 million in 2021, a year-on-year increase of + 97%; The net interest rate was 7.7%, with a year-on-year increase of 1.8pct. Q4 in 2021 achieved a revenue of 940 million yuan in a single quarter, with a year-on-year increase of + 51% and a month on month increase of + 99%; The net profit attributable to the parent company was 70 million yuan, with a year-on-year increase of + 67% and a month on month increase of + 1122%. The substantial increase of the company’s revenue in Q4 was mainly due to the substantial increase of the company’s industrial scale and revenue.
The advantages of laser automation platform are obvious, and the products are expected to extend to the whole line of lithium batteries, photovoltaic and other application fields
At present, the company’s main products in the field of power battery are laser die-cutting machine for pole ear cutting and cell assembly line in the middle section. Polar ear cutting machine is the core product of the company, and its market share is expected to be more than 50%. Downstream customers of the cell assembly line include first-line lithium battery manufacturers such as AVIC lithium battery and Eve Energy Co.Ltd(300014) etc., which are highly competitive in the market. The company is expected to give full play to the advantages of its laser automation platform and continue to make breakthroughs in the front and middle of lithium batteries. In addition, the downstream areas of the company’s products are expected to extend from the field of power cells to photovoltaic and other fields, further opening up growth space. We believe that the overall scale effect of the company will be more significant in 2022, driving the further improvement of gross profit margin and net profit margin, and the overall performance is highly uncertain.
Profit forecast and Valuation: the net profit CAGR in the next two years is 158%, maintaining the “buy” rating
It is estimated that the operating revenue of the company from 2021 to 2023 will be RMB 1.97/37.4/6.75 billion, with a year-on-year increase of 49% / 89% / 81%; The net profit attributable to the parent company was RMB 110 / 340 / 720 million, with a year-on-year increase of 39% / 213% / 113%, corresponding to PE 108 / 35 / 16 times. The compound growth rate of the company’s performance from 2022 to 2023 was 158%, maintaining the “buy” rating.
Risk tip: competition intensifies, profitability is lower than expected, and the growth rate of new orders in lithium battery equipment industry declines
