2021-11-22 Zhou Xuhui of Oriental Fortune Securities Co., Ltd. conducted research on Zhuhai Guanyu and issued a research report "dynamic comments: expanding 10GWh power production capacity, opening up room for performance growth". This report gives a buy rating to Zhuhai Guanyu, and the current share price is 58.77 yuan.
Zhuhai Guanyu (688772)
[matters]
Zhejiang Guanyu Battery Co., Ltd., a wholly owned subsidiary of the company, plans to invest 4 billion yuan to build a new lithium-ion power battery project in Haiyan County, Jiaxing, Zhejiang Province, with an estimated construction period of 36 months. Zhejiang Guanyu signed the Project Investment Agreement with the people's Government of Haiyan County and the Management Committee of Zhejiang Baibu Economic Development Zone on November 18, 2021.
[comments]
The consumer battery has been ploughed for many years and the technical background is profound. The company, formerly known as Zhuhai Guangyu, has started lithium battery research and development since 1998 and has grown into a leading consumer lithium battery company in the world, accounting for 24% of the market share of notebook batteries in 2020, second only to ATL. The company ploughs consumer cells and has a deep accumulation of micro-morphology and underlying principles of battery materials. The underlying principle and supply chain of consumer battery have something in common with power battery, and the leaders in power field, such as CATL and LG chemistry, are all upgraded from consumer battery leader. The company's technology, process accumulation and supply chain relationship in the field of consumption can be reused in the field of power, and the power business is expected to make a breakthrough quickly.
Invest heavily to expand production and open up room for performance growth. The company's current power production capacity is about 2.5GWh, of which the main 0.5GWh test line, Jiaxing 2GWh production line, the production of 12V, 48V HEV battery and energy storage battery, the main supporting customers are Haojue, Cummins, China Motor, etc., with an income of about 70 million yuan in the first half of the year. The company's 10GWh capacity construction period is 36 months, in 2023-2025 will gradually reach production, in addition to the existing HEV and energy storage battery, is expected to further enter the BEV battery. The company previously announced that it would develop and supply 12V lithium batteries for Zhiji LS7 models as a designated supplier to SAIC. With its excellent product performance, the company is expected to make a rapid breakthrough in the field of power and energy storage, and this capacity expansion also lays a solid foundation for subsequent continuous customer expansion. Consumer battery is a steadily growing market. In the field of hybrid battery, the trend of lithium battery replacing lead acid is clear. Under the background of carbon neutralization, the long-term market space of power and energy storage battery is nearly trillion. The horizontal expansion of the company into the field of power is expected to open the space for performance growth.
Consumer business continues to improve, profits ushered in repair. In the field of consumer batteries, with the gradual withdrawal of Japanese and South Korean enterprises, the company ushered in structural opportunities. The company relies on product performance, R & D strength, response speed and other advantages, customer expansion is smooth, notebook customer supply chain permeability continues to improve, mobile phone field continues to open up new customers, as a whole to maintain the state of full production and sales. In addition, in order to meet the growing customer demand, the company has accelerated the layout of production capacity, which is expected to reach 5000 or 60 million by the end of 2021 and 2022. In addition, the company's profit side is under pressure in the third quarter due to power cuts and rising prices of raw materials. Enter the fourth quarter, the impact of power cuts gradually fade, raw material costs are expected to be transmitted downstream, the company will usher in profit repair.
As the leader of consumer lithium electricity, the power field has been expanded smoothly. We estimate that 2021 PE 2022 / 2023 is expected to achieve operating income of 106max 125 / 14.2 billion, corresponding net profit of 11.6max 16.0 / 2 billion, EPS of 1.04x1.42, and PE of 60-44-35, maintaining a "buy" rating.
[risk Tip]
The company's capacity expansion falls short of expectations; the company's subsequent product quality tests fall short of customers' expectations.
The stock has been rated by two institutions and two buy ratings in the last 90 days. According to the Securities Star valuation analysis tool, Zhuhai Guanyu (688772) good company has a rating of 4 stars, a good price rating of 0.5 stars and a comprehensive valuation rating of 2.5 stars. (rating range: 1-5 stars, up to 5 stars)