\u3000\u3000 Suzhou Recodeal Interconnect System Co.Ltd(688800) (688800)
Performance review
On January 22, 2022, the company announced the performance forecast. In 2021, the company's performance attributable to the parent company was 115 million yuan, with an increase of 56%, and the non net profit attributable to the parent company was 99 million yuan, with an increase of 49%. Slightly more than expected.
Business analysis
Q4's performance grew rapidly, reflecting the strong demand for downstream new energy vehicles. 1) The performance attributable to the parent company of Q4 company was 44 million yuan, with an increase of 261% and a ring increase of 25%, and the non performance attributable to the parent company of Q4 company was 34 million yuan, with a ring increase of 9%. 2) The company's high deduction of non performance is mainly due to the increase in sales orders of new energy vehicle products, and the increase in non recurring profits and losses is mainly due to the increase in financial management income from government subsidies (6.6 million) and idle funds.
The policy side and battery factory jointly promote the development of power exchange mode and the take-off of power exchange leaders. 1) On January 10, the national development and Reform Commission, the energy administration, the Ministry of industry and information technology and other ten ministries and commissions issued the implementation opinions on further improving the service guarantee capacity of electric vehicle charging infrastructure, which pointed out that by the end of the 14th five year plan, China's charging infrastructure will be able to meet the charging demand of 20 million electric vehicles, accelerate the formulation, promotion and application of high-power power power exchange standards Accelerate the promotion of power exchange mode (promote the transformation of electrification in heavy truck, container truck and other fields). 2) On January 18, Contemporary Amperex Technology Co.Limited(300750) announced its power exchange brand evogo and the overall solution of combined power exchange, which includes "power exchange block, quick exchange station and app". Its power exchange block has the advantages of small volume, high density and free combination. A single battery can provide a driving range of 200 kilometers and can adapt to 80% of the models developed by pure electric platforms that have been listed in the world and will be listed in the next three years. Only three parking spaces are required for the power exchange station. A single power block can exchange power for 1 minute, and 48 power exchange blocks can be stored in the station. 3) It is difficult to replace the power connector and has high requirements for service life and floating compensation capacity. As the leader of the power replacement connector industry, the company has cooperated with Weilai since 2015, and Weilai has supplied the power replacement connector alone. Since 2015, it has cooperated with Ningde on high-voltage connector, which is expected to benefit from the improvement of the penetration rate of power replacement mode in the future.
Investment suggestion: it is estimated that the net profit attributable to the parent company in 2021 will be 115 million yuan (an increase of 17%), mainly due to the high sales of new energy vehicles. It is estimated that the net profit attributable to the parent company in 2022 and 2023 will be RMB 290 million, EPS will be RMB 186 and RMB 269, with a same increase of 74% and 44%, and PE will be 121, 69 and 48 times from 2021 to 2023. Maintain the buy rating and raise the target price to 161 yuan (60 * 2023eps). In the short term, the company is optimistic about the rapid volume of medium Shanxi Guoxin Energy Corporation Limited(600617) vehicle high-voltage connectors and power replacement connectors, and in the long term, the company continues to develop overseas customers and the gradual volume of high-speed connectors.
Risk tips: increased competition in the industry, fluctuations in raw material prices, technological iterations, and the risk of lifting the ban on restricted shares.
