\u3000\u3 Shengda Resources Co.Ltd(000603) 063 Shenzhen Hopewind Electric Co.Ltd(603063) )
Key investment points
New energy electronic control business: the leading position of wind power converter is stable, and photovoltaic inverter contributes important performance increment. During the reporting period, the company’s new energy electronic control business achieved a revenue of 1.732 billion yuan, a year-on-year increase of 6.74%, and a gross profit margin of 32.7%, a year-on-year decrease of 8.98 PCT. It mainly includes wind power converter and photovoltaic inverter products.
1) wind power converter: in 2020, onshore wind power will rush to install overdraft part of the demand in 2021, resulting in the reduction of the installed capacity of the industry, and the price of onshore wind power converter will decline due to market competition. During the reporting period, the company sold 3484 converters, a year-on-year decrease of 16.55%. In the shipping structure, the increase in the proportion of sea breeze makes the single machine power increase, and the company’s sea breeze products are 6 Xmw high-capacity air-cooled doubly fed converter, full-power ultra sectorau water-cooled converter products, 10MW medium voltage sea breeze converter, self-developed sea breeze converter for 5.5MW floating unit, etc. all have good market performance.
2) photovoltaic inverter: during the reporting period, the company sold 45544 photovoltaic inverters, with a year-on-year increase of 485.55%, of which the proportion of series inverter shipments increased significantly. The company adopts differentiated management for the raw material supply chain to ensure the chip supply. At the same time, the laying speed of China’s sales channels is faster than expected. At present, there are sufficient orders on hand.
Electrical transmission business: maintain high profitability and expand rapidly
During the reporting period, the company achieved a revenue of 201 million yuan, a year-on-year increase of 92.71% and a gross profit margin of 45.6%, maintaining a high gross profit level. In 2021, the company’s full range of frequency conversion drive solutions were widely used in metallurgical steel rolling, mining machinery, railway infrastructure, petroleum, LNG, large-scale test-bed, distributed energy power generation and other fields, and won the “first prize of 2021 Metallurgical Science and Technology Award”, the highest technology award in the metallurgical industry.
Profit forecast and valuation
The company is a leading supplier of new energy power electronics and electrical transmission equipment in China. The leader of wind power converter is stable, and the market share of photovoltaic series inverter is expected to increase significantly. We estimate that the net profit attributable to the parent company from 2022 to 24 will be 503 million yuan, 705 million yuan and 875 million yuan, and the EPS will be 1.15, 1.61 and 1.99 yuan / share respectively, corresponding to 33, 24 and 19 times of PE.
Risk tips
The installed capacity of wind power PV is less than expected; Fluctuations in raw material costs; Risk of policy changes.
