\u3000\u3000 Zhejiang Hangke Technology Incorporated Company(688006) (688006)
Event:
On January 25, 2022, the company received the fixed-point notice sent by Eve Energy Co.Ltd(300014) and its holding subsidiaries through e-mail, and won the bid for lithium battery equipment of 497 million yuan (including tax).
Eve Energy Co.Ltd(300014) is an important customer of the company, and the bid winning amount is expected to reach 17% of the operating revenue in 2021
Eve Energy Co.Ltd(300014) is one of the company’s important customers. According to its published capacity planning, it is expected that the capacity will reach 200gwh by 2023. The company’s operating revenue of Eve Energy Co.Ltd(300014) from 2019 to the first three quarters of 2021 was 1.37 million yuan, 10000 yuan and 300.38 million yuan respectively, accounting for 0.1% / 0.0% / 17.1% of the operating revenue of the current year. According to the profit forecast, it is expected that the winning Eve Energy Co.Ltd(300014) lithium battery equipment will account for 17% of the operating revenue in 2021.
The expansion of overseas lithium battery production is expected to accelerate. The company plans to issue an additional 2.3 billion yuan to expand production and fully grasp the new market opportunities
Previously, the company announced that the total amount of funds to be raised by issuing shares did not exceed 2.312 billion yuan, of which 1.337 billion yuan was used to expand production, 303 million yuan was used to upgrade existing production capacity, and 252 million yuan was used to build overseas business network layout and basic R & D, assembly and manufacturing centers, which will alleviate the pressure of potential production capacity in the future and strengthen the layout of overseas business.
The company has launched an equity incentive plan, and the compound growth rate of net profit is expected to be no less than 54% in the next three years
The performance unlocking conditions of the incentive plan are as follows: 1) the first unlocking period: Based on 2020, the growth rate of revenue or net profit in 2021 shall not be less than 65% / 30% (i.e. RMB 2.5/484 billion respectively); 2) The second unlocking period: Based on 2020, the growth rate of revenue or net profit in 2022 shall not be less than 165% / 100% respectively (i.e. RMB 4 / 744 million respectively); 3) The third unlocking period: Based on 2020, the growth rate of revenue or net profit in 2023 shall not be less than 300% / 280% (i.e. RMB 6 / 1.414 billion respectively). After deducting the share based payment expenses, according to the above unlocking conditions, the net profit attributable to the parent company from 2021 to 2023 is expected to be RMB 454 / 640 / 1367 million respectively, with a three-year compound growth rate of about 54%.
Orders in hand are full, orders from overseas customers are expected to be gradually implemented, and profits are expected to accelerate growth in the next year
In 2021, the company has full orders on hand, and the average profitability of orders is better than that in 2020. It is expected that the amount of new orders signed by the company in 2021 will exceed 5 billion yuan, and the profitability of this year is also better than that of last year. The performance is expected to accelerate growth this year and next year. Major overseas customers such as LG and SK are gradually starting equipment bidding. It is expected that LG will accelerate the pace of production expansion after listing and financing, and the company is expected to fully benefit as an important global supplier of back-end equipment.
Profit forecast and investment suggestions
It is estimated that the net profit of the company from 2021 to 2023 will be RMB 400 / 730 / 1.42 billion respectively, with a compound growth rate of 56%, and the corresponding PE will be 90 / 50 / 26 times respectively, maintaining the “buy” rating.
Risk tip: the sales volume of new energy vehicles is lower than expected; The risk that the contract cannot be fully performed.
