\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 51 Zhejiang Yonggui Electric Equipment Co.Ltd(300351) )
Rail transit connector is the leader, and the four sectors develop together Zhejiang Yonggui Electric Equipment Co.Ltd(300351) was founded in 1973, focusing on the R & D and sales of various electrical connectors. It landed in Shenzhen Stock Exchange in 2012. Relying on its own connector technology, the company has expanded in depth in the fields of rail transit, vehicle mounted new energy, military industry and aerospace, forming four industrial clusters. The company is the leader of China’s rail transit connector, actively expanding new energy, military industry, aerospace and other fields, and has achieved initial results. In the future, the company is expected to fully benefit from the rapid growth of urban rail construction and operation and the continued high popularity of new energy vehicles and charging ports.
The prosperity of rail transit continues, and the company is basically stable. At present, the company has formed seven major rail transit product layouts: connector, door system, shock absorber, gangway, axle counter signal system, pantograph and battery box; The revenue of rail transit and industry in 2021 is 680 million yuan, accounting for 59%, which is the current pillar business. According to the State Railway Administration, by the end of 2020, the operating mileage of China’s high-speed railway will reach 37900 kilometers, and the total investment in railway fixed assets in 2020 will be 781.9 billion yuan; From 2010 to 2020, the urban rail operation mileage CAGR reached 18.6%. With the continuous progress of the “14th five year plan” railway construction, the construction of intercity railway has brought large increment: the operation mileage of intercity railway and municipal (suburban) railway has been increased by 3000 kilometers, and the rail transit network in Beijing Tianjin Hebei, Yangtze River Delta, Guangdong, Hong Kong, Macao and Dawan district has been basically completed. The operating mileage of urban rail transit will be increased by 3000 kilometers.
In the wave of automobile electrification + intellectualization, the connector and harness will rise in volume and price, and the charging gun is the company’s flagship product. According to canalys data, electric vehicles accounted for more than 7% of global new car sales in 2021, with a further increase of 66%, and the sales volume will exceed 5 million; In 2028, the sales volume of electric vehicles will increase to 30 million; By 2030, electric vehicles will account for nearly half of the total sales of passenger cars in the world. According to bishop & Associates, it is estimated that by 2025, the global automotive connector market will reach US $19.452 billion, with a CAGR of 4.20% from 2019 to 2025. Among the golden opportunities in the market, the company’s flagship product charging gun has a high degree of benefit; It covers DC and AC, and covers the interface between national standard and international standard, with stable performance. In the field of fast charging, the current index of the company’s liquid cooling high current charging gun reaches 600A. It is the first company in China to realize mass production of liquid cooling charging gun, with international leading technology. With the in-depth cooperation with relevant customers in the future, it will be a new growth point for the development of the company.
The company has a solid customer base and a wide distribution of production bases to ensure supply. In the field of rail transit, the company supplies Crrc Corporation Limited(601766) group, China National Railway Group and other well-known enterprises. In the field of new energy, the company has entered the supply systems of Geely, great wall, Byd Company Limited(002594) , BAIC, SAIC, FAW and Honda. In the field of military industry, aerospace and aviation, the company’s products have been supplied to the 11 major military industry groups. In terms of high-end communication connectors, the company is a first-class supplier of Huawei and ZTE. In addition, Zhejiang Yonggui Electric Equipment Co.Ltd(300351) has production bases and R & D centers in Zhejiang, Sichuan, Beijing, Shenzhen, Jiangsu and Qingdao to meet the process needs of R & D, production, assembly and testing.
Profit forecast and investment suggestions: it is estimated that the company’s revenue is RMB 2022e / 2023e / 2024e 16.09/21.722759 billion, with a year-on-year increase of 40.0% / 35.0% / 27.0%; The net profit attributable to the parent company was RMB 183 / 253 / 340 million, with a year-on-year increase of 49.5% / 38.3% / 34.5%, corresponding to PE 23.0 / 16.6 / 12.4x. It has the advantage of valuation and is given a “buy” rating for the first time.
Risk tip: industry competition intensifies, and the progress of new energy business is less than expected
