\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 90 Sanhe Tongfei Refrigeration Co.Ltd(300990) )
The performance grew rapidly, and the revenue of pure water cooling unit business increased by 155.86% year-on-year in 2020: benefiting from the good development of China’s laser equipment market and the national power industry, especially in the field of new energy, the company’s operating revenue increased from 334 million yuan in 2017 to 612 million yuan in 2020, with a CAGR of 22.4%; The net profit attributable to the parent company increased from 54 million yuan in 2017 to 125 million yuan in 2020, with a CAGR of 32.3%. The company’s pure water cooling unit products benefited from the promotion of power policy, the development of downstream power electronic device industry and the company’s increased investment in the market, and the sales revenue increased rapidly. In 2020, the business income of pure water cooling unit increased by 155.86% year-on-year to 158 million yuan, accounting for 25.88%. The rapid growth of pure water cooling unit revenue will bring new profit growth points to the company.
The four major product areas cover high-quality customers and actively expand the field of energy storage and semiconductor: the company’s downstream customer of CNC machine tool cooling equipment, German Emak group, is an important manufacturer of CNC inverted machine tools in the world and has a leading market position; GF archishamir group of Switzerland is the world’s leading supplier of machine tools, automatic control solutions and services in the field of mold / tool manufacturing and high-precision parts production; Beijing Jingdiao Technology Group Co., Ltd. and Ningbo Haitian Precision Machinery Co.Ltd(601882) ( Ningbo Haitian Precision Machinery Co.Ltd(601882) ) are leading manufacturers of high-end CNC machine tools in China. The downstream customer of laser water cooler, Germany tongkuai, is one of the leading manufacturers of laser technology and systems in the world; Switzerland Baichao and Japan Tiantian are world-class laser equipment manufacturers Huagong Tech Company Limited(000988) ranks second in the total revenue of China’s laser equipment industry. The downstream customer of pure water cooling unit Sieyuan Electric Co.Ltd(002028) is one of the few manufacturers in the industry that can cover the product manufacturing and solutions of primary equipment, secondary equipment and power electronic devices in power system. The main customers include State Grid and China Southern Power Grid Windsun Science Technology Co.Ltd(688663) 2019 high voltage SVG market share 8.22% Tbea Co.Ltd(600089) ranks in the forefront of China in the market share of high-voltage, ultra-high voltage and ultra-high voltage transformers. In addition, the company has actively expanded its business areas, expanding sunshine energy storage and Naura Technology Group Co.Ltd(002371) as customers in the field of energy storage liquid cooling and semiconductor liquid cooling respectively. At present, the business is in the stage of rapid development.
Excellent R & D strength, collaborative R & D with customers to enhance customer stickiness: the company’s R & D investment increased from 10.5 million yuan in 2017 to 20.4 million yuan in Q3 in 2021. The proportion of R & D investment in revenue increased steadily, reaching 3.42% in 2021q3. As of 2021h1, the company has obtained 5 national invention patents and 101 utility model patents. The company participates in the product research and development of some downstream customers, cooperates in the design of technical solutions, creates value for customers through technological innovation, increases customer stickiness and improves the core competitiveness of products. In 2021, the company and Tianjin University jointly built the “joint research center of industrial thermal management technology” to carry out industry university research cooperation. Excellent R & D strength will help the sustainable development of the company.
Investment suggestion: we estimate that the operating revenue of the company from 2021 to 2023 will be 904 million yuan (+ 47.7%), 1.395 billion yuan (54.2%) and 2.093 billion yuan (+ 50.1%) respectively; The net profit attributable to the parent company is expected to be 180 million yuan (+ 44.6%), 288 million yuan (+ 59.9%) and 443 million yuan (+ 53.6%) respectively, corresponding to EPS of 3.47/5.55/8.52 yuan respectively. Based on prudent assumptions, we give the company 16 times PE in 2022, corresponding to the target price of 88.80 yuan. For the first time, the investment rating of “Buy-A” is given.
Risk tips: macroeconomic and downstream industry fluctuations, intensified market competition, raw material price fluctuations, product substitution risks
