\u3000\u3 Guocheng Mining Co.Ltd(000688) 516 Wuxi Autowell Technology Co.Ltd(688516) )
Company events: the company issued the annual report of 2021:
1) in terms of annual performance, the company achieved a revenue of 2.047 billion yuan (YoY + 78.93%) and a net profit attributable to the parent company of 371 million yuan (YoY + 138.63%) in 2021, exceeding the previous performance express;
2) in the fourth quarter, the company achieved revenue of 619 million yuan (year-on-year + 26.27% / month on month + 22.57%) and net profit attributable to the parent company of 143 million yuan (year-on-year + 66.34% / month on month + 68.42%). By the end of 2021, the company’s contractual liabilities were about 1.143 billion yuan (year-on-year + 70.10%);
Benefiting from the company’s good cost control and effective management, the profitability has been significantly improved. The gross profit margin of the company in 2021 was 37.66%, with a year-on-year increase of 1.6pct; The net interest rate attributable to the parent company was 17.95%, with a year-on-year increase of 4.38pct; Among them, the rates of sales / management / R & D / financial expenses were 3.82% / 5.39% / 7.08% / 1.00% respectively, with a year-on-year increase of -0.51pct / – 0.99pct / + 0.98pct / + 0.22pct. In terms of products, the company’s photovoltaic equipment / lithium battery equipment / transformation and others achieved a gross profit margin of 37.50% / 24.18% / 47.52% respectively, with a year-on-year increase of + 1.79pct / – 2.92pct / – 2.3pct.
The multi-point flowering of sub business and the saturation of on-hand orders will support the future growth of the company. Since the fourth quarter, the company has received large orders for many businesses, including 1) component equipment: GCL 120 million series welding machine / non-destructive dicing machine, Jingke 145 million series welding machine / dicing machine, Chint 106 million yuan series welding machine, Jingke 110 million yuan silicon wafer sorter / multi main grid dicing machine; 2) Silicon wafer equipment: 140 million single crystal furnace of Yuze semiconductor; 3) Lithium battery equipment: honeycomb energy 130 million lithium battery module pack, etc., totaling 641 million. In addition, the company also has undisclosed orders for Huasheng 2gw heterojunction series welding machine, Wuxi delixin and Tongfu Microelectronics Co.Ltd(002156) semiconductor bonding machine. In 2021, the newly signed sales orders amounted to 4.281 billion yuan (including tax), exceeding the newly signed orders of 2.667 billion yuan in 2020, with a year-on-year increase of 60.52%; By the end of 2021, the company’s orders on hand were 4.256 billion yuan, a year-on-year increase of 77.41%.
The industrial application of series welding machine in n-type battery production line is accelerated. The company signed a strategic cooperation agreement with Huasheng. The second phase 2gw hjt component project of Huasheng will select Wuxi Autowell Technology Co.Ltd(688516) series welding machine. The large-scale ultra-high-speed series welding machine has high-precision alignment ability and accurate welding temperature control system, which can realize low-temperature welding of hjt ultra-thin sheet. In addition, the company also won the order of Jingke multi main grid series welding machine and nondestructive dicing machine, and will undertake the component production of Jingke tigerneo n-type TOPCON battery fine welding wire. Metallization optimization has become one of the most effective ways to reduce the cost of n-type batteries. The promotion of cooperation projects will not only facilitate the iteration of the company’s equipment, but also help n-type batteries reduce the cost and increase efficiency and accelerate the process of large-scale application.
Monocrystal furnace and semiconductor equipment relay growth. 1) Monocrystal furnace: the company acquired Songci Electromechanical to expand monocrystal furnace equipment. In December, the company’s monocrystal furnace production capacity reached 60 units / month, and 100 units were produced in a single month in February / March of 22 years. 2) At present, the semiconductor aluminum wire bonding machine has been tried out in many clients. After making a breakthrough in November 2021, the company obtained Tongfu Microelectronics Co.Ltd(002156) batch bonding machine orders, opening the company’s accelerated development channel in the field of semiconductor packaging and testing.
Equity incentive provides guarantee for performance growth. The company recently announced the equity incentive plan (Draft), which plans to grant 950000 restricted shares to 850 directors, senior executives and other personnel working in the company and its subsidiaries at a price of 110 yuan / share. Each ownership of rights and interests is subject to meeting the corresponding ownership conditions. The specific conditions are based on the deduction of non parent net profit in 2021 (excluding share based payment expenses), In 2022 / 2023 / 2024, the growth of non net profit deducted shall not be less than 50% / 100% / 150%. Corresponding to equity incentive, the company’s management and core backbone will be deeply bound with the interests of the company, providing a strong guarantee for the company’s long-term performance growth.
Investment suggestion: it is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 529 / 719 / 953 million yuan, with a year-on-year increase of 42.8% / 35.8% / 32.5%. The corresponding PE of the current stock price is 36 / 26 / 20 times respectively, maintaining the “recommended” rating.
Risk tips: changes in technology path, lower than expected photovoltaic installed capacity, repeated epidemic in China, etc.
