\u3000\u3000 Wuxi Autowell Technology Co.Ltd(688516) (688516)
Key investment points
Announcement: 2021 performance forecast: a year-on-year increase of 110% – 120%; Platform layout, and the orders on hand are expected to exceed 4 billion yuan
1) net profit attributable to parent company: it is expected to be RMB 330-340 million in 2021, with a year-on-year increase of 110% – 120%. Looking at Q4 of 2021 alone, the net profit attributable to the parent company is expected to be 99-114 million yuan, with a year-on-year increase of 15% – 33% and a month on month change of 16% to 34% compared with Q3.
2) net profit attributable to parent company after non deduction: it is expected to be RMB 300-320 million in 2021, with a year-on-year increase of 120% – 134%. Looking at Q4 of 2021 alone, the net profit after deduction is expected to be RMB 95-115 million, with a year-on-year increase of 22% to 47% and a month-on-month increase of 22% – 47% compared with Q3.
3) non recurring profit and loss: it is estimated that it will be about 22-27 million yuan in 2021, which is judged to be mainly government subsidies.
4) orders on hand: by the end of the third quarter of 2021, the company’s orders on hand had reached 3.625 billion yuan (including tax), a year-on-year increase of 55%. Superimposed on the orders of Jingke, Chint, Yuze, beehive and Huasheng announced by Q4 company in 2021, the orders on hand are expected to exceed 4 billion yuan. Short term: benefiting from multiple technological changes in the photovoltaic industry, equipment iteration is accelerated (only 1.5-2 years). The company is the leader in 70% market share of series welding machine, which fully benefits. At the same time, the company’s layout of photovoltaic single crystal furnace and its value is 6 times that of series welding machine, opening up the space for performance growth. Medium and long term: the company’s platform layout opens the second growth curve of performance. The company’s semiconductor bonding machine equipment is progressing smoothly, has received the first batch of orders, and is expected to relay a large amount of photovoltaic equipment in the next 2-3 years. Lithium battery equipment orders are accelerated to cover core high-quality customers.
The company is the leader of component series welding equipment; We look forward to the multi-point flowering of photovoltaic, semiconductor and lithium battery equipment of the company
1) component series welding machine: meet the multi technology iteration trend of “large size + multiple main grids + multiple segments”, and accelerate the iteration cycle of component equipment update. The company is the leader of component series welding machine equipment, with a market share of 70%, benefiting from technical iteration and winning the order of Huasheng hjt component equipment.
2) photovoltaic long crystal furnace: the value of single crystal furnace (120 million / GW) is 6 times that of series welding machine (20 million / GW). The company acquired songporcelain Electromechanical, produced 1600 and above direct pull single crystal furnaces, and has obtained 171 million orders (including tax), opening the second growth curve of photovoltaic of the company.
3) semiconductor equipment: the company is the first domestic enterprise to replace aluminum wire bonding machine. It has been verified by many sealing and testing plants in China and won the first batch of orders of Wuxi Deli core. In the future, it will extend to gold, copper wire bonding machines and upstream semiconductor equipment to open the second pole of semiconductor business growth.
4) lithium battery equipment: the company arranges lithium battery module + pack line, covering high-quality lithium battery customers in China. In the first half of 2021, lithium battery orders reached the level of 2020, and the performance is expected to accelerate. It is proposed to invest an additional 50 million in cell manufacturing equipment such as stacking machine.
Investment suggestion: optimistic about the company’s performance in the field of photovoltaic, semiconductor and lithium battery equipment in the next five years
The net profit attributable to the parent company from 2021 to 2023 was raised to RMB 330 / 470 / 610 million, with a year-on-year increase of 113% / 41% / 31%, corresponding to 56 / 40 / 30 times of PE. Maintain the “buy” rating.
Risk warning: the downstream expansion of PV is not as expected; The progress of semiconductor equipment research and development is lower than expected.
