Hang Ke Technology (688006): Focus on lithium battery post-processing overseas customers expand smoothly

Hang Ke Technology (688006): Focus on lithium battery post-processing overseas customers expand smoothly

Investment Highlights Companies are listed on the first criteria.

Leading company in lithium battery post-processing equipment, with a market share of about 20% in 2018.

The company’s core product is charge and discharge equipment, and demand is mainly affected by the expansion of downstream lithium battery manufacturers.

The company’s 2018 revenue was 11.

100 million (+43.

9%), of which charge and discharge equipment revenue accounted for 82%, gross profit accounted for 90%.

Charge and discharge equipment includes power battery equipment and consumer battery equipment, and the revenue in 2018 was 4 respectively.

100 million and 4.

9 trillion, accounting for 37% of total revenue.

1% and 44.

3%, the growth rate was 27.

3%, 41.

1%.

The company’s business has continued to grow rapidly in recent years, mainly benefiting from the expansion of downstream lithium battery manufacturers, the expansion of their own customers, and the increase in the proportion of supporting customers.

In 2018, China’s lithium battery post-processing equipment output value was about 6.2 billion, and the company’s lithium battery post-processing equipment production inventory was about 12.

400 million, accounting for about 20%.

Benefiting from the development of new energy vehicles, the power battery equipment business is expected to continue to grow rapidly.

Worldwide sales of electric vehicles in 2018 were 201.

80,000 (+64.

9%), of which China’s new energy vehicle production and sales were 1.27 million (+59.

9%) and 125.

60,000 vehicles (+61.

7%).

Benefiting from downstream demand, the global power battery in 2018 will supplement 106GWH (+55.

2%), of which China achieved 65GWH (+46) of power battery replenishment in 2018.

1%) to achieve an installed capacity of 56.

98GWH (+56.

5%).

Downstream demand is good, and manufacturers’ expected expansion of output value has driven the company’s power battery equipment to continue to grow rapidly. 2016, 2017, and 2018 revenue were 1 respectively.

100 million, 3.

200 million (+195.

6%), 4.

10,000 yuan (+27.

3%).

Overseas customers developed smoothly, and the proportion of revenue increased significantly.

The company’s foreign revenue was 0 from 2017.

80,000 yuan, increased to April 2018.

10,000 yuan, mainly due to a significant increase in LG’s revenue contribution.Revenue from LG in 2017 and 2018 were 1.

400 million, 4.

0 ppm, contributing 76 of the revenue increase.

5%.

The company’s 2018 revenue from power battery equipment and consumer battery equipment from foreign brands was 0.

700 million (+ 265%) and 4.

4 ppm (+ 44%), showing that the company’s products have been continuously recognized by overseas customers, and the supporting ratio has continued to increase.

Profit forecast and estimation.

The company’s business has reached a certain scale and the growth rate is expected, but it will still maintain rapid growth.

Comparable listed companies include Jingxian Electronics, Nebula, Pioneer Intelligence, Winshare Technology, etc., which correspond to 29 times PE in 2019, and the lowest and highest are 23 times and 33 times, respectively.

In the next three years, the combined company ‘s net profit will increase at a compound growth rate of about 25%. 南宁桑拿 We believe that the company’s PE corresponds to 25% in 2019?
Between 30 times, it is a reasonable estimate of the horizontal interval, and the corresponding interval is 22.

05-26.

46 yuan.

Taking into account the initial stage of the development of the science and technology board, investors may be allocated additional bids, which may exceed the target range in the short term.

Risk reminders: 1) The risk of the fundraising project is less than expected; 2) The risk of overseas trade and exchange; 3) The risk of technology and product substitution; 4) The risk of policy changes in the new energy industry; 5) The risk of changes in large customers.