\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 38 Guangzhou Great Power Energy&Technology Co.Ltd(300438) )
Event:
Guangzhou Great Power Energy&Technology Co.Ltd(300438) released the annual report of 2021 and the first quarterly report of 2022: in 2021, the company achieved a revenue of 5.693 billion yuan, a year-on-year increase of + 56.30%; The net profit attributable to the parent company was 182 million yuan, a year-on-year increase of + 242.90%; Deduct the net profit not attributable to the parent company of 137 million yuan, a year-on-year increase of + 347170%.
Among them, the revenue of 2021q4 was 1.797 billion yuan, a year-on-year increase of + 54.05% and a month on month increase of + 24.72%; The net profit attributable to the parent company was 18 million yuan, 121.05% year-on-year and – 59.58% month on month; Net profit deducted from non parent company was -09 million yuan, 91.66% year-on-year and -121.20% month on month.
In 2022q1, the company achieved a revenue of 1.662 billion yuan, a year-on-year increase of + 56.48% and a month on month increase of – 7.52%; The net profit attributable to the parent company was 91 million yuan, a year-on-year increase of + 65.51% and a month on month increase of + 391.50%; Net profit deducted from non parent company was 84 million yuan, with a year-on-year increase of + 71.96% and a month on month increase of + 107461%.
Key investment points:
In 2021, the revenue grew rapidly, and the focus on energy storage business achieved remarkable results. In 2021, the company’s energy storage revenue more than doubled, and the proportion of revenue in total revenue also increased significantly to 31%. According to the statistics of Beijing Centergate Technologies (Holding) Co.Ltd(000931) energy storage industry technology alliance (cnesa), in 2021, Guangzhou Great Power Energy&Technology Co.Ltd(300438) ranked second among the top 10 global energy storage battery (excluding base station and data center backup battery) shipments among Chinese enterprises. In terms of large energy storage batteries, further deepen strategic cooperation with Trina Solar Co.Ltd(688599) and become an excellent supplier of Sungrow Power Supply Co.Ltd(300274) batteries; Household energy storage battery products shipped more than 100000 sets, and successfully became the preferred supplier for head customers such as Sanjing electric and gurewat; The cooperation with China Mobile in the field of communication energy storage has been steadily promoted, and large orders in 2022 have been locked; In the portable energy storage market, the company has become the main supplier of Zhenghao technology ecoflow, a leading brand in China’s industry.
In 2021, the power battery business doubled and the consumer battery grew steadily. In the power sector, the company is committed to serving existing customers and supporting SAIC GM Wuling models. In 2021, more than 60000 sets of products were delivered, and the revenue of new energy vehicle power battery business doubled year-on-year. In the field of light power, in 2021, the company further deepened cooperation with Chinese iron tower power exchange, Emma and other enterprises, and supplied large quantities to the international leader TTI of electric tools. In terms of consumer digital batteries, we continue to maintain a good cooperative relationship with Harman, the world’s leading manufacturer of audio products, and maintain advantages in the field of Bluetooth speakers and TWS headphones; Continue to expand market share and achieve steady growth in areas such as electric nursing products.
In 2021, the profit increased significantly year-on-year, and the gross profit margin decreased, but the gross profit margin increased in 2022
Q1 ushered in significant improvement. In 2021, the company realized a net profit attributable to the parent company of 182 million yuan, a year-on-year increase of + 242.90%. Affected by multiple factors such as the continuous rise in the price of raw materials in the industry, the repeated covid-19 epidemic and the drastic fluctuation of the external environment, the company’s gross profit margin in 2021 was 16.21%, a year-on-year decrease of 1.28pct. By product, the gross profit margin of secondary lithium battery products with revenue accounting for 90% was 14.92%, a year-on-year decrease of 3.09pct. Quarterly, the gross profit margin in 2021 began to decline significantly from Q2, and Q1-Q4 were 18.36%, 16.05%, 15.41% and 15.71% respectively; However, the gross profit margin steadily rebounded to 17.31% in Q1 2022. From the perspective of net interest rate, the net interest rate of sales in 2021 decreased quarter by quarter, which were 5.29%, 4.71%, 3.00% and 0.99% respectively; Q1 improved significantly in 2022, exceeding the level of Q1 in 2021 by 5.70%. It is estimated that the improvement of Q1 gross profit in 2022 is related to the current strong demand for overseas household energy storage. The company can ease the pressure of rapid rise in upstream costs by raising prices.
Profit forecast and investment rating: the company’s strategic objectives are clear, the existing capacity gives priority to ensuring energy storage, and the future expansion focuses on energy storage. It is expected to benefit from the high growth of global energy storage demand in the future. The company is expected to adjust the layout of overseas energy storage lines flexibly, and actively respond to the current demand of energy storage and users. We expect the company to achieve revenue of 9.237 billion yuan, 12.350 billion yuan and 16.742 billion yuan from 2022 to 2024, and net profit attributable to the parent company of 609 million yuan, 868 million yuan and 1.207 billion yuan. The current share price corresponds to PE of 22.32, 15.66 and 11.26, and is rated as “buy” for the first time.
Risk warning: the downstream demand for energy storage is less than expected; Production capacity construction is less than expected; The competition pattern intensifies; The company’s order delivery is less than expected; Technical iterations exceeded expectations.
