\u3000\u3000 Jade Bird Fire Co.Ltd(002960) (002960)
Event:
The company released the performance forecast for 2021, and it is expected to realize revenue of RMB 3.700-4.200 billion, with a year-on-year increase of 46.56% – 66.36%; The net profit attributable to the parent company was RMB 485-555 million, with a year-on-year increase of 12.78% – 29.06%; Net profit deducted from non parent company was RMB 475-545 million, with a year-on-year increase of 26.50% – 45.15%.
Key points of the report:
The performance is in line with expectations and the core business is growing rapidly
In 2021, the company’s businesses grew rapidly, among which the orders and shipments of emergency evacuation business ushered in an explosion, with an expected year-on-year increase of more than 200%; The general fire fighting business achieved steady and rapid growth. Under the trend of “new energy + energy storage”, the company will gradually increase its capacity in the field of energy storage and fire protection in the future, and its performance is expected to be greatly improved.
Two wheel drive of foreign business in China and multi brand matrix enable the company to grow
General fire alarm system: Bluebird and Jiuyuan brands will achieve rapid growth in 2021, and will maintain a strong growth trend in the future with high-quality products and services. The company vigorously promotes the internationalization strategy and has formed four overseas brands: Maple armor in Canada, finsecur in France, detnov in Spain and MPOWER in the United States, further radiating the global market. Emergency evacuation system: the company has successfully built Jade Bird Fire Co.Ltd(002960) , left lighting, Zhongke Zhichuang and other multi brand matrices. All units will play a synergistic role and fully realize the sharing of users and resources. In the field of industrial fire protection: in 2021, the company actively improved the industrial fire protection product system. The research and development of inspiratory smoke / image fire detector has been completed, and the low configuration ultraviolet / infrared / composite flame detector has obtained 3C certificate. It is optimistic about the company’s new product reserve and future launch. The company has won the bid of Qingdao BAIC, State Grid Jiangsu and other projects to achieve a “0-1” breakthrough in steel, petrochemical, automobile and other fields. In the future, the company’s industrial fire electronic products will continue to extend to downstream applications. Smart fire fighting: in 2021, the company launched the solutions of “integrated security control platform for fire safety” and “smart fire fighting platform”, and continued to expand the one-stop service platform. Under the trend of smart fire fighting integration, the company has obvious first mover advantage.
The golden track for energy storage and fire protection was laid out, and the project continued to land, helping the performance take off
Energy storage and fire fighting is the golden track in the next 10 years. According to estimates, the scale of China’s energy storage and fire fighting market is expected to reach 10.800-15.576 billion yuan in 2030. As a provider of high-end fire-fighting products, the company has actively arranged the energy storage and fire-fighting market. At present, it has won the bid for the 10 foot / 20 foot / 40 foot energy storage container (Jutong) gas fire extinguishing system project, an energy storage substation project in Texas, USA, Huagong intelligent energy storage sample box and other projects. In the future, the company will give full play to the unique underlying technical advantages of “Crested Ibis” chip, promote the development and expansion of energy storage fire safety solutions based on battery modules with the reserve of miniaturized and cable detector products and multi-dimensional (smoke, temperature, gas, etc.) detection, and help the company’s performance take off.
Investment advice and profit forecast
In the future, the company is expected to enjoy the huge development space brought by the expansion and low concentration of the fire market by virtue of its rich accumulation and technical advantages. The company actively laid out the golden track of energy storage and fire fighting, opening the second growth curve. From 2021 to 2023, we expect the net profit attributable to the parent company to be RMB 548 / 757 / 1055 million respectively, the corresponding EPS of the current stock price to be 1.59 / 2.20 / 3.06 respectively, and the corresponding PE to be 29.1 / 21.0 / 15.1 times respectively, maintaining the “buy” rating.
Risk tips
Market competition intensifies, the growth rate of electrochemical energy storage is lower than expected, and the expansion of emergency evacuation market is lower than expected
