\u3000\u3 China Vanke Co.Ltd(000002) 943 Hunan Yujing Machinery Co.Ltd(002943) )
Key points of the report:
High quality enterprises in the field of hard and brittle material cutting actively cut into the field of photovoltaic
It is engaged in the research and development of semiconductor machine tools, grinding machines and other industries, as well as the production and sales of electronic materials. In recent years, the company has actively cut into the photovoltaic field and achieved rapid growth in business. In 2022q1, the company’s revenue reached 184 million yuan, a year-on-year increase of 134.86%, and the net profit attributable to the parent company reached 18 million yuan, turning losses into profits.
It is proposed to increase RMB 342 million to consolidate competitiveness, and equity incentive shows growth confidence
In November 2021, the company plans to increase 342 million yuan, increase investment and market development in the photovoltaic field, and enhance the company’s core competitiveness. In 2022, the company issued an equity incentive plan to motivate 43 senior managers and key employees of the company and its subsidiaries. The exercise conditions are that the company’s operating revenue from 2022 to 2024 is not less than 6 / 8 / 1 billion yuan respectively, or the net profit attributable to the parent company from 2022 to 2024 is not less than 60 / 0.96/120 million yuan respectively. The introduction of equity incentive shows the company’s confidence in the continuous growth of future performance, and helps to deeply bind the interests of employees and the interests of the company.
With the Trinity layout of cutting equipment + consumables + process, the photovoltaic business has grown rapidly
The company’s products for the photovoltaic industry include photovoltaic cutting equipment, diamond wire and thermal field system series products. Among them, the company’s photovoltaic cutting equipment is compatible with 105230mm silicon wafer size and perc / TOPCON / hjt half wafer, high production capacity, high yield and high speed, and its performance has reached the industry-leading level. The trend of large size and flake of photovoltaic silicon wafer puts forward higher requirements for the slicing link. At present, the backward slicing capacity is facing elimination, the chip of stacking slicer is in short supply, and the high-quality slicing capacity is in short supply. Although the company is a backward entrant in the industry, it is a rare enterprise in the industry with the Trinity layout of cutting equipment + diamond line + process, and its competitive advantage is becoming increasingly prominent.
Lay out chip OEM and hjt special silicon wafer to create a new growth point of performance
The company cooperates with Shuangliang Eco-Energy Systems Co.Ltd(600481) , Yongxin new materials to build 25gw photovoltaic large-scale silicon wafer project, and arrange chip OEM service and hjt special silicon wafer track. In the future, hjt will reduce the cost of the industrial chain through the mass production and import of ultra-thin half rod and half wafer silicon and the mass production and import of silver clad copper technology. With the continuous cost reduction and efficiency increase of hjt, the track is expected to usher in an explosion and greatly increase the demand for hjt special silicon wafer. In the 25gw Yancheng double crystal project, the company adopts photovoltaic cutting equipment compatible with different silicon wafer sizes and battery module technologies, which can take into account the OEM business of ordinary single crystal silicon wafer and the production of hjt special silicon wafer. With the gradual production of the company’s production capacity, the company is expected to create a new growth point of performance.
Investment advice and profit forecast
We estimate that the operating revenue of the company from 2022 to 2024 will be RMB 1.097/32.87/5.064 billion respectively, the net profit attributable to the parent company will be RMB 126/4.83/812 million respectively, and the corresponding PE of the current stock price will be 35.0/9.1/5.4 respectively. Referring to the average PE of comparable companies, we give Hunan Yujing Machinery Co.Ltd(002943) 202335 times PE, corresponding to the target share price of 169 yuan, with huge growth space in the future.
Risk tips
The market competition intensifies the risk, the sales price of products continues to decline, the production of new production capacity is less than the expected risk, and the demand for photovoltaic silicon wafer is less than the expected risk.
