In this paper, we focus on discussing Wuxi Autowell Technology Co.Ltd(688516) business model and how to continuously improve and build a platform company through stock price resumption and historical resumption.
Stock price resumption: Industry Valuation driven + high performance growth → stock price rise
Through the relationship between the company’s share price, valuation and net profit, we found that the company’s share price was affected by the continuous growth of performance in 2021q4 and before（ α） And the valuation of photovoltaic equipment industry continued to improve（ β） The underlying logic of the rise is that the continuous growth of performance is the source of the rise of share price (since the listing, the company’s share price has risen sharply four times, accompanied by performance improvement and new orders).
History review: photovoltaic series welding machine → lithium battery module pack → semiconductor bonding machine
The actual controller of the company has technical background, stable ownership structure and well motivated technicians, from 0 to 1 (the leader of series welding machine), and gradually from 1 to + ∞ (extended to lithium battery, semiconductor, etc.). Benefiting from the rapid growth of the industry, the company’s revenue increased from 566 million yuan to 1.144 billion yuan from 2017 to 2020, with CAGR ≈ 26.44%; Net profit increased from 27 million yuan to 155 million yuan, CAGR ≈ 79.06%.
1) vertical expansion: the global leader of component equipment (market share 60% – 70%) is gradually extended to the field of lithium battery and semiconductor. 2) Horizontal extension: single equipment → intelligent whole line integration solution, which can open up the path separation and information barrier between single equipment and reduce cost loss. Discussion on business model: the invisible champion of “selling shovels”
1) photovoltaic equipment:
Series welding machine: the investment amount is 62 million yuan / GW, and large silicon wafer + new technology + high-efficiency components promote the continuous investment of equipment. In the cost of newly installed production line of photovoltaic modules, the cost of series welding machine is 20-25 million / GW, accounting for about 35% Wuxi Autowell Technology Co.Ltd(688516) series welding machines have absolute advantages, accounting for 60% – 70% of the market.
Wafer sorter: Wuxi Autowell Technology Co.Ltd(688516) the latest model of wafer sorter can produce 8500 Wafers / hour. In 2021, the company’s silicon wafer sorter accounted for about 50% of the total market.
Monocrystal furnace: the monocrystal furnace produced by songporcelain Electromechanical, a subsidiary in 21 years, successfully pulled out 12 inch n-shaped crystal rods at the client. The hearth is 1600 type, and the maximum heat field is 40 inches.
Laser dicing machine & light injection annealing furnace: by making auxiliary equipment, the company has a deeper understanding of the serial welding process required by components and strengthened the R & D strength of serial welding machine.
2) semiconductor aluminum wire bonding machine: the market space in China is 600700 million US dollars, and the domestic substitution space is large. The company successfully launched high-end bonding machine products at the beginning of 2021.
3) lithium battery module Pack: benefiting from the increased penetration of new energy vehicles, the market space of China’s lithium battery packaging equipment from 2022 to 2025 is 5.2/56/63/6.5 billion yuan, and the company’s module pack also has strong growth.
Risk warning: risk of major changes in the technical route of downstream industries; Risk of declining market demand; Risk of replacing conventional series welding machine with multi main grid series welding machine; Product gross profit margin fluctuation risk; The calculation is subjective.
