\u3000\u3 Guocheng Mining Co.Ltd(000688) 559 Shenzhen Hymson Laser Intelligent Equipments Co.Ltd(688559) )
Event: on April 15, 2022, Shenzhen Hymson Laser Intelligent Equipments Co.Ltd(688559) wholly owned subsidiary received the letter of acceptance of TOPCON laser micro loss equipment bidding project of Jingke Energy Co., Ltd., with the bid winning amount of 1.067 billion yuan (including tax).
Comments:
The bid winning amount is significant, the products break through new fields and obtain large photovoltaic orders for the first time Shenzhen Hymson Laser Intelligent Equipments Co.Ltd(688559) engaged in the manufacturing of laser processing equipment, with an operating revenue of 1.97 billion yuan in 2021. Therefore, the bid winning amount of 1.067 billion yuan (including tax) accounts for a large proportion of the company’s current revenue. In addition, the company’s products are mainly used in three major fields: power batteries, consumer electronics and sheet metal processing. In 2021h1, their revenue accounts for 41% / 32% / 26% respectively. The winning project is the first time that the company has obtained large-scale orders for photovoltaic laser and automation equipment. It is a new and broad field of laser processing technology transplantation, which has laid a good foundation for the company to enter the field of photovoltaic special equipment. According to the announcement, the impact of the project on the performance in 2022 is uncertain, but the smooth performance of the contract is expected to have a positive impact on the company’s operating performance in 2023.
TOPCON is one of the mainstream of mass production battery technology in the future. At present, the space to improve the conversion efficiency of traditional perc batteries is limited, and the new TOPCON / hit battery technology will usher in rapid development. TOPCON has the advantages of high conversion efficiency, compatibility with stock perc, using less cost and prolonging the life cycle of the production line. In October 2021, Jingke set a record of 25.4% efficiency of TOPCON technology, nearly 2 points higher than the traditional perc, and the yield and cost are further reduced with perc. At present, Jingke, Zhonglai, Junda, Trina Solar and other enterprises have accelerated the layout of TOPCON capacity. According to PV InfoLink data, TOPCON capacity has increased significantly since 2022. It is expected that the cumulative capacity (including under construction) is expected to exceed 50gw by the end of 2022 and close to 80gw by the end of 2023.
Full orders in hand, product extension opens up new growth space. Benefiting from the vigorous production expansion of downstream power battery manufacturers, the company closely follows the first-line customers such as AVIC lithium battery, Contemporary Amperex Technology Co.Limited(300750) , honeycomb energy and so on, and the product demand increases rapidly. By the end of December 2021, the company’s orders for power battery, laser and automation equipment were about 4.8 billion yuan. At the beginning of this year, the company has successively obtained orders of 433 million yuan from Yiwei power and orders from Jingke energy this time. In order to meet the delivery capacity, the company is actively expanding its production. In January this year, it announced to invest 700 million in the construction of Jiangmen Shenzhen Hymson Laser Intelligent Equipments Co.Ltd(688559) phase II project, which is expected to last 24 months. On the whole, the company is based on the leader of the lithium electrode ear film maker industry. At present, it is gradually developing to the supplier of the whole middle assembly line. At the same time, the technology is transplanted to the photovoltaic field to further open the growth space. It is expected that the company will benefit from the rapid development of power lithium battery and photovoltaic.
Profitability forecast and valuation. We continue to be optimistic about the future development of the company. It is estimated that the company’s revenue from 2022 to 2023 will be RMB 3.955/5.906 billion respectively, and the net profit attributable to the parent company will be RMB 357687 million respectively, corresponding to 37 / 19 times of PE.
Risk tip: the downstream expansion is less than expected, the competition of comparable companies is intensified, and the product promotion is less than expected.
