\u3000\u3000 Shenzhen Kstar Science & Technology Co.Ltd(002518) (002518)
Data center UPS products are widely used in all walks of life: as one of the first Chinese enterprises to enter the field of data center products and solutions, after years of development, the company has become one of the companies with the most complete categories of data center infrastructure products in the industry. The company’s core products include uninterruptible power supply (UPS), communication power supply, high-voltage DC power supply, precision air conditioning, precision power distribution, storage battery, network server cabinet, power environment monitoring system, etc. In 2021, H1 company’s data center products realized an operating revenue of 949 million yuan, a year-on-year increase of 37.15%. According to CCID Consulting Report and relevant reports of ictresearch, the sales of UPS, supporting lead-acid battery products and modular data center products of the company rank among the top in the industry. The data center products independently developed and produced by the company are widely used in various industries such as government, finance, communication, education, transportation, health care, energy and power, and provide high reliable power protection for national key projects such as West to east gas transmission project, Qinghai Tibet railway, 2008 Beijing Olympic Games, 2010 Shanghai World Expo, 2010 Guangzhou Asian Games and 2014 Beijing APEC conference. The company always takes “technology + quality” as the core cornerstone. While expanding the market share of ups in the full power section, the company takes high efficiency, intelligence and integration as the development direction of the company’s data center products.
The new energy business is developing rapidly and jointly Contemporary Amperex Technology Co.Limited(300750) layout the energy storage field: new energy photovoltaic and energy storage are included in the key projects in the 14th five year plan. In the future, “new energy + energy storage” will play a significant role in promoting carbon peak and carbon neutralization in the energy field. Based on the electronic power conversion technology, the company lays out the field of new energy photovoltaic and energy storage products. Its existing products mainly include centralized photovoltaic inverter, series photovoltaic inverter, modular energy storage converter, large container energy storage integrated system, optical storage and charging system, etc. In 2020, the company will provide CNNC with 150MW integrated photovoltaic power generation equipment in Xinjiang and Gansu, more than 100MW photovoltaic power generation equipment for Ningxia Jiayang project, and more than 300MW integrated photovoltaic inverter power generation equipment for Wenzhou Longwan 550MW fishery light complementary project. The company’s fish light complementary project has shipped more than 1.5gw, demonstrating the company’s leading industry position in the field of large-scale photovoltaic power plants. The company’s household energy storage all-in-one machine scheme has obtained the certification of Australia, Italy, Germany and other target market countries. The company’s optical storage and charging system and large container energy storage integrated system have been applied in batches in Southeast Asia and other countries. The products with power above 175kW / 1500V have been applied in batches in Bayannur, Ulanqab and other large-scale power station projects in China, and have been highly recognized by the market. In 2021, H1’s new energy photovoltaic business realized an operating revenue of 147 million yuan, a year-on-year increase of 68.7%. In order to achieve the long-term strategic goal, the company joined hands with Contemporary Amperex Technology Co.Limited(300750) to establish a joint venture Contemporary Amperex Technology Co.Limited(300750) Shenzhen Kstar Science & Technology Co.Ltd(002518) Technology Co., Ltd., focusing on the field of energy storage products. At present, the main project of phase I of the joint venture has been completed, which will help to better develop energy storage related businesses after it is officially put into operation.
The charging pile business has broad prospects in the future: the new energy vehicle industry development plan (2021-2035) points out that by 2025, the sales volume of new energy vehicles will account for about 20%. With the gradual increase of the penetration rate of new energy vehicles, the market scale of charging infrastructure will also increase. The company has a complete range of electric vehicle charging pile products, which can meet the use of various application scenarios. At the same time, it can provide customized solution services according to the needs of customers. The company focuses its business on customers such as power grid system, bus passenger transport, charging station operators and urban investment and transportation. Relying on its product and technical advantages, the company has obtained continuous orders from customers such as state grid, China Southern Power Grid, Xiaoju platform, China iron tower, Chongqing Changan Automobile Company Limited(000625) , Changsha investment and transportation, Shenyang Anyun group and Yingkou transportation group. In the first half of 2021, the company’s electric vehicle charging pile series products achieved an operating revenue of 24 million yuan. With the enhancement of the company’s R & D strength and the acceleration of overseas business layout, the company’s charging pile business has broad prospects in the future.
Investment suggestion: we estimate that the operating revenue of the company from 2021 to 2023 will be RMB 2.859 billion (+ 18.0%), RMB 3.516 billion (+ 23.0%) and RMB 3.780 billion (+ 7.5%) respectively; The estimated net profit attributable to the parent company is 379 million yuan (+ 24.9%), 521 million yuan (+ 37.6%), 717 million yuan (+ 37.6%), and the corresponding EPS is 0.65, 0.89 and 1.22 yuan respectively. We give the company 31 times PE in 2022, corresponding to the target price of 27.59 yuan in 2022, covering it for the first time, and give the “Buy-A” investment rating.
Risk tips: risks of intensified market competition, exchange rate fluctuations, price fluctuations of main raw materials and changes in new energy policies
