\u3000\u3 China Vanke Co.Ltd(000002) 724 Ocean'S King Lighting Science & Technology Co.Ltd(002724) )
Strong product quality, deep cultivation of downstream channel development, and continuous improvement of profitability. The company is a high-tech enterprise specializing in the development, production and sales of professional lighting equipment. After years of sales channel development and continuous updating and iteration of products, the company has determined four value creation sectors "procurement, production, technology and sales", and defined the organizational structure supporting the realization of the objectives of the four value creation sectors, so as to improve the overall service quality of the company and meet the needs of customers for personalized products and services.
While continuing to tap the potential market in the field of industrial lighting, the company is also accelerating the strategic transformation and upgrading to an intelligent and service-oriented enterprise, constantly expanding the horizontal and vertical extension of the field of professional lighting, and is committed to providing customers with professional lighting solutions and a range of subsystem lighting services. With the continuous promotion of digitization and intelligence, the on-site and work needs of customers are also constantly upgrading and changing, The company organically combines work environment lighting products with the Internet, applies Internet of things devices and new technologies to empower traditional professional lighting, gives full play to the combination advantages of LED products + controller + service platform, and promotes the development of customer lighting system in the direction of informatization, digitization and intelligence.
The main purpose of the company's acquisition of mingzhihui in 2020 is that mingzhihui has a number of architectural and engineering design qualifications, which opens up the whole lighting construction engineering industry chain for the company and realizes the effective complementarity of industrial and professional lighting. It also has important strategic significance in the role of upgrading the company to become an intelligent city builder. With the development of Internet technology and the construction of national intelligent cities in the future, the combination of lighting products and new technologies is an inevitable trend, and special lighting products will be given higher requirements. The company has made active layout and built an intelligent lighting working system. Breakthrough progress has been made in new light source technology, and the sales network has been formed. It is expected to contribute new incremental elasticity in the future and form further growth of operating revenue.
The potential of traditional lighting industry is considerable, and product upgrading further penetrates the downstream market. From the demand level of downstream traditional industries, special lighting is mainly used in exploration and inspection of transportation, as well as explosion-proof lighting in heavy industries such as electric power, petroleum and chemical industry. After the outbreak of the epidemic last year, there was a slow recovery trend from June, and it began to grow explosively at the end of the year. This year is a key year for the overall recovery of national infrastructure, and the overall national policy is also inclined. It is expected that the industrial growth rate will remain at a relatively high level in 2021. With the continuous development of LED light source, the phenomenon of replacing traditional light source by LED is becoming more and more popular in special lighting industry. At present, LED light sources have been gradually applied to urban landscape lighting, municipal road lighting, automobile lighting and industrial lighting, and further meet the market fields with higher requirements for lighting products such as highways, tunnels, subways, airports and shipping. The threshold of professional lighting fields such as industrial, commercial lighting and stadiums and gymnasiums is high, and the market and profit space are still large in the future. The indoor and outdoor intelligent lighting market will maintain rapid growth, especially the accelerated construction of 5g network will promote the LED multifunctional lamp pole to play an important carrier role in the intelligent city.
The whole layout of intelligent lighting has greatly strengthened its core competitiveness. Taking the working lighting lamps as the connection control object, the company has newly developed the intelligent working lighting system (i.e. controller product) in combination with intelligent control technology and wireless transmission technology, which realizes the scientific and systematic management of illumination regulation, energy efficiency monitoring, fault alarm, life prediction, information tracing and other scientific and systematic management of working lighting lamps in the working environment, so as to reduce the enterprise energy consumption and maintenance cost, so as to create a safer, energy-saving Efficient and comfortable working environment. The company's digital, intelligent and functional integrated lighting system is widely sold in 10 industries such as oil field, power grid and railway, and has become an important growth pillar of the company's development.
Profit forecast and rating: maintain the overweight rating. The continuous optimization of the company's internal management will lead to the continuous improvement of profitability, which is the internal core of the company's sustained and steady growth since its listing, and will also become an important support for the company's continued progress in the future. From the industry level, the capital expenditure of the core downstream during the 14th Five Year Plan period will continue to grow, the penetration of LED lamps in the field of special environmental lighting will continue to evolve, and the market demand of the company's main products has room for further improvement, The innovative business model of "digital, intelligent and functional integrated lighting" is more flexible for the company's future growth savings. It is estimated that the net profit from 2021 to 2023 will be 396 million, 505 million and 669 million respectively, and the current share price corresponds to pe25.5 million 19. 19.85 and 14.93 times, maintaining the overweight rating.
Risk tips: (1) the promotion of new business model is blocked; (2) The intensification of industry competition leads to the decline of profitability; (3) Because of China's economic downturn, mingzhihui is unable to fulfill its promised performance, and the synergy between the company and mingzhihui is less than expected; (4) Covid-19 epidemic has repeatedly led to pressure on China's macro-economy.
