\u3000\u3000 Wuxi Autowell Technology Co.Ltd(688516) (688516)
Event overview
The company issued the announcement on the advance increase of annual performance in 2021. It is estimated that the net profit attributable to the parent company in 2021 will be RMB 327 million to RMB 342 million, with a year-on-year increase of 110.16% – 120.14%; Net profit deducted from non parent company was 300 million yuan to 320 million yuan, with a year-on-year increase of 119.60% to 134.24%.
Analysis and judgment:
Product advantages are obvious, and the performance in 21 years is slightly higher than expected
In 2021, the company mainly benefited from the capacity expansion of large-size silicon wafers downstream, and the increased demand for the company’s core products, ultra-high speed large-size series welding machine and silicon wafer sorter, which led to a significant increase in the company’s revenue. At the same time, the company strengthened cost management, further enhanced its ability to control product manufacturing costs and various expenses, and continuously improved its profitability.
In 2021q4, the company’s business blossoms at multiple points and high-quality orders continue to land
1) component equipment: the company has obtained orders for the latest multi main grid series welding machine and non-destructive dicing machine of Jingke Jianshan new project of RMB 145 million (including tax, the same below), orders for GCL 120 million full-automatic welding machine and non-destructive laser dicing machine, and orders for Chint Cecep Solar Energy Co.Ltd(000591) 106 million automatic series welding machine (210 half piece special-shaped welding belt configuration); In addition, the company signed a strategic cooperation agreement with Huasheng to jointly promote the process development and large-scale mass production of heterojunction components. Huasheng phase II 2gw heterojunction module project will also select the company’s series welding machine for the whole line.
2) monocrystal furnace equipment: the company’s subsidiary songporcelain electromechanical has obtained the order of 1600 monocrystal furnace of 140 million yuan from Yuze semiconductor. Up to now, songporcelain electromechanical has obtained orders from well-known enterprises such as Jingao, Jingke and Yuze semiconductor. With the continuous development of photovoltaic industry, the single crystal furnace equipment business can be expected in the future.
3) lithium battery equipment: the company has obtained the order of honeycomb module pack line of about 130 million yuan, and the lithium battery equipment business is stable.
4) semiconductor equipment: the company won the first order for semiconductor bonding machine of Wuxi delixin. Wuxi delixin is the first trial customer of the company, which has passed the verification for more than half a year, and has purchased several equipment in the near future.
To sum up, the total new orders announced in 21q4 are about 641 million yuan (the bid winning projects disclosed are only those with a bid winning amount of 80 million yuan or above), which is conducive to supporting the company’s performance.
Raise funds to increase product research and development, and the future growth can be expected
The company plans to increase by 550 million yuan. The net funds raised after deducting relevant issuance expenses are intended to be used for high-end intelligent equipment R & D and industrialization projects (300 million yuan), science and technology reserve fund projects (150 million yuan) and supplementary working capital projects (100 million yuan). Among them, the products to be developed by the high-end intelligent equipment R & D and industrialization project are TOPCON battery equipment (boron diffusion equipment and LPCVD equipment), semiconductor packaging and testing core equipment (chip loader, gold copper wire bonding machine and flip chip bonding machine), and lithium battery cell core process equipment (lamination machine). At present, the company’s main products are multi main grid series welding machine, large-size ultra-high speed series welding machine, silicon wafer sorter, laser scribing machine, light injection annealing furnace and other photovoltaic equipment, module pack line and other lithium equipment and aluminum wire bonding machine. The proposed project is expected to further enhance the company’s R & D strength and core technology capabilities, and have greater synergy with the company’s existing products and customers, so as to open up growth space.
Investment advice
We kept the company’s revenue forecast unchanged from 21 to 23 years, which were RMB 2.197/43.71/3.298 billion respectively, with a year-on-year growth rate of 92.1% / 50.1% / 32.5% respectively; Considering the further enhancement of the company’s ability in cost and expense control, we raised the forecast of the company’s net profit attributable to the parent company of RMB 319 / 465 / 614 million in 21-23 years to RMB 335 / 471 / 644 million. Increase Eps3 in 21-23 years The forecast of 24 / 4.71/6.22 yuan is 3.40/4.77/6.53 yuan, corresponding to the closing price of 189.00 yuan / share on January 13, 2022, and the PE of 21-23 years is 56 / 40 / 29 times respectively. We maintain a “buy” rating.
Risk tips
The photovoltaic landscape is less than expected; New product development is not as expected; Industry competition intensifies.
