\u3000\u3 China Vanke Co.Ltd(000002) 897 Wenzhou Yihua Connector Co.Ltd(002897) )
Communication connector faucet, connector + photovoltaic support dual main business layout Wenzhou Yihua Connector Co.Ltd(002897) is a leading manufacturer of communication connectors in China. Its main products include traditional RJ communication connectors, 5gsfp, SFP + series and other high-speed communication connectors. At the same time, it continues to expand the connector markets of consumer electronics and automobiles. It has established a business layout with communication connectors as the core, consumer electronics connectors as the important composition and automobiles and other connectors as the extension. In 2019, the company acquired Yueqing Yihua new energy, a major shareholder, and entered the field of photovoltaic tracking support. Through M & A, the new energy business has become an important growth point. In 2021, the revenue of connectors and Cecep Solar Energy Co.Ltd(000591) supports of the two major businesses accounted for 45.65% and 50.24% respectively, the gross profit of connectors accounted for 65.30%, and the profit of Cecep Solar Energy Co.Ltd(000591) supports increased from 28.83% at the end of 20 to 31.41%, showing a rapid upward trend. The company adheres to the key customer strategy. Its main customers include international well-known communication manufacturers such as Huawei, ZTE, Flextronics, MOLEX, nextracker, GSC and FTC, Tier1 and head photovoltaic tracking support manufacturers. A large number of high-quality customer resources and good customer cooperation provide strong support for the company's performance growth.
Automotive intelligent + 5g drive connector requirements. In the connector application industry, communication and automobile account for more than 40% in total, and international giants in the United States, Europe and Japan dominate. With the rise of China's 5g and new energy vehicle industry, Chinese connector manufacturers are gradually competitive in terms of technical services and costs, and domestic substitution is accelerating. The increase in the number of 5g base stations and channels will increase the demand for connectors. The growth of data traffic will drive the growth space of high-speed communication connectors in optical fiber access, data center and other fields. The electrification + intellectualization of vehicles has brought the demand for high-voltage and high-speed high-frequency connectors. There are about 8001000 connectors for new energy vehicles, and the value is doubled compared with traditional fuel vehicles. The assembly rate of ADAS is improved, and the application of high-speed data transmission system is expanded. High frequency high-speed connectors represented by fakra, HSD and Ethernet connection have become the mainstream solutions. In the field of high-speed communication connectors, 5gsfp and SFP + series products have complete independent intellectual property rights and have passed various performance tests of key customers. SFP series and optical interconnection products are continuously extended, and their R & D capacity and lean production level are leading in the industry. The subsidiary Suzhou focuses on automotive connectors, covering automotive BMS low-voltage, high-speed and high-frequency, ECU connectors and other products, and has established long-term cooperative relations with well-known manufacturers such as Huawei, Byd Company Limited(002594) , Geely, GKN and anbofu. After years of layout, Suzhou Yuanye's revenue increased significantly in 2021, turning losses into profits. With the continuous increase of projects with key customers outside China and the further enhancement of synergy with the parent company in the supply chain, there is more room for business growth.
Photovoltaic scaffolds cooperate with North American giants, and China's business M & A integration moves forward to the solution provider. In the context of carbon neutrality, the new installed capacity of global photovoltaic continues to grow, and the new installed capacity in China and the United States ranks the top two in 21 years. The U.S. Department of energy estimates that Cecep Solar Energy Co.Ltd(000591) by 2050, it will account for 45% of the power generation. The energy structure in Europe is in the stage of change, or it will increase investment in new energy. In terms of regional distribution, the demand for tracking stents in the United States accounts for half of the shipments, ranking second in the Asia Pacific region. In the PV installed capacity, the penetration rate of the tracking rack in the United States is 70%, which is significantly higher than the global average of 30%, and the penetration rate of the Chinese market is about 16%. Under the trend of PV parity on the Internet, the penetration rate of the tracking rack has gradually increased with the advantage of high power generation efficiency. The barrier of photovoltaic tracking bracket is relatively high and the market concentration is high. In 2020, CR10 will reach 91%. Nextracker is the largest photovoltaic tracking bracket manufacturer in the world, with a market share of about 30%. Yihua new energy has in-depth cooperation with nextracker, and continues to expand the world's leading photovoltaic tracking bracket customers such as FTC and GCS, with sufficient orders on hand. By establishing Tianjin Yihua new energy and acquiring Tianjin Shengwei, the company expands the Chinese market, improves the layout of photovoltaic business, and gradually moves forward to the solution provider. According to the company's information disclosure, Tianjin Shengwei currently has orders of nearly 300MW, most of which are fixed support orders. This year's sales expectation is 800mw-1gw, and the tracking support accounts for a certain proportion. The company has completed the price negotiation with customers at the end of May 2021. It is expected that the impact of raw material price rise will be weakened, and the gross profit margin of support business is expected to gradually return to normal.
Investment suggestion: we expect the company's revenue in 20222024 to be 5.568 billion yuan / 6.727 billion yuan / 8.007 billion yuan respectively (the original forecast value of 22-23 years is 5.294 billion yuan / 6.369 billion yuan), net profit to be 305 million yuan / 423 million yuan / 524 million yuan respectively (the original forecast value of 22-23 years is 318 million / 423 million yuan), EPS to be 1.79 yuan / 2.48 yuan / 3.07 yuan respectively (the original forecast value of 22-23 years is 1.86 yuan / 2.48 yuan), corresponding to pe20x in 2022, maintaining the "buy" rating.
Risk warning: risk of price rise of main raw materials; International trade conflict risk; Technical iteration risk; The risk of intensified competition in the new energy vehicle industry; The public materials used in the research report may have the risk of information lag or untimely update.
