(Report producer Analyst: Soochow** Ma Tianyi Bao Xianying).
1.1.Company Overview
The company is the leading sawing tool in China, and the development of power supply business is the second growth curve.
The company was founded in 2003, and in the same year the first bimetallic composite steel strip production line was officially put into operation, in 2006 to extend the industrial chain, bimetal band saw blade production line was officially put into operationIn 2010, the project with an annual output of 8 million meters of bimetal band saw blade was completedIn 2013, the production capacity of bimetal band saw blades exceeded 13 million meters, and the production scale ranked among the top in the world.
In 2017, the company landed on the small and medium-sized board of the Shenzhen Stock Exchange, and accelerated the international development layout under the guidance of the "Double Fifty Strategy". In 2018, the company became a shareholder of AGG in Germany, established a European (Dutch) grandson company, and established an Indian grandson company in 2019.
According to the data on the official website, the company has established a sales and service network in more than 50 countries or regions around the world, and has exclusive brands in New Zealand, Japan, South Korea and other places, and its sawing products are exported to more than 50 countries and regions, including Europe, America and Japan.
In addition, in 2020, the company began to lay out precision electronic manufacturing business and consumer electronic products.
At the end of September 2022, the company completed the major asset restructuring of Dongguan Botai Electronics, increased the power supply business, and developed the photovoltaic and energy storage power supply business with its existing technology and experienceIn September 2022, the company completed the wholly-owned acquisition of the rookie in the band saw blade industry, Metsen, and has formed a new pattern of "sawing + power supply" dual main business development.
Consolidate the main business and create a two-wheel drive mode of "sawing + power supply".
In terms of sawing products, the company's main products include two categories: tungsten carbide band saw blades and high-speed steel bimetal band saw blades, including 7 major brands, 10 specifications, 33 series and 429 tooth types, covering high, mid-end and economical products.
In terms of the second main power supply business, the company's main business is the research and development, production and sales of consumer electronic power supplies, photovoltaic new energy power supplies, energy storage power supplies, site energy power supplies, data center power supplies and other special power supply products.
The shareholding structure is stable to ensure the continuity of the business strategy.
As of September 3, 2023, Fang Hong, chairman of the company, holds 2752%, is the actual controller of the company. The second largest shareholder of the company is Zoomlion, a leading construction machinery company, which holds 2242% of the shares.
In 2022, the company invested in power supply and sawing assets, acquired 100% of the shares of Jiangsu Metsen, a rookie in the domestic sawing field, and held 5623% of the equity, through its wholly-owned subsidiary Yada Electronics, successfully entered the power supply business.
1.2.The company's revenue is stable, and the proportion of power supply business has increased rapidly
The company's revenue has grown steadily, and the consolidated revenue in 2022 has increased significantly. Taijia's revenue grew steadily, and its revenue increased from 3 to 3 in 18-21 years500 million yuan increased to 5300 million yuan, CAGR 14%, net profit attributable to the parent company from 05.6 billion yuan increased to 07 billion yuan, CAGR78%。In September 2022, it merged with Botai Electronics and Metsen, and the company's revenue reached 9800 million yuan, an increase of 86% year-on-year, and the net profit attributable to the parent company was 1300 million yuan, a year-on-year increase of 87%, 23H1 company revenue of 94.5 billion yuan, a year-on-year increase of 228%, and the net profit attributable to the parent company was 06.1 billion yuan, a year-on-year increase of 46%, with the completion of the ramp-up of new energy power production line capacity, the company's long-term space is expected to open.
In 23H1, the company's expense ratio continued to decrease, and the profitability was temporarily under pressure due to the impact of the industry's prosperity.
In 2022, due to the consolidation of the power supply business and the decrease in foreign exchange gains and losses, the company's expense ratio for the period decreased significantly to 167%, and the expense ratio continued to decrease to 11 during H1 20233%, mainly due to the merger of the power supply business with low gross profit margin, and the downturn in the consumer electronics market in the first half of the year, which further pressured the consumer electronics power supply business.
Affected by the decline in the prosperity of consumer electronics and the fluctuation of the new energy market, the company's 23H1 gross profit margin continued to decrease to 1831%, a year-on-year decrease of 20pct, and a net sales margin of 625%, a year-on-year decrease of 8pct.
After the company has developed the power supply business for 22 years, the proportion of the power supply business has increased rapidly.
The power supply business of 23H1 accounted for 659%, more than 341%。The gross profit margin of the company's sawing business is stable at 40%+, the power supply business is in the early stage and is affected by the macro environment of 23H1 There are certain fluctuations, and the gross profit margin of 23H1 consumer electronics power supply is 383%, the gross profit margin of new energy power supply is 1385%。
1.3.We will increase the yard sawing business and actively expand the production of new energy projects
Raise funds to consolidate the sawing advantage, expand the production of new energy power supply projects and accumulate long-term growth.
In August 2023, the company issued the "Prospectus for Issuing ** to Specific Targets (Registration Draft)", and intends to invest no more than 60.8 billion yuan, mainly used for the consolidation of sawing business and the expansion of production capacity of new energy power supply business.
2.1.Sawing business: The domestic sawing market continues to grow, and domestic substitution penetrates into the high-end
2.1.1.The scale of the domestic manufacturing industry is huge, and the demand for saw blades as basic consumables is broad
The domestic manufacturing industry is large in scale and growing steadily, which provides a solid foundation for the development of the saw blade industry. As the key object of national industrial policy support, domestic bimetal band saw blade manufacturers continue to increase investment in research and development of new materials, new processes and new products, which not only shortens the technical gap with foreign products, but also expands the market share of domestic products.
At the critical stage of China's transformation from a manufacturing country to a manufacturing power, the manufacturing industry is developing in the direction of improving the localization rate, improving the quality of domestic industrial products, optimizing the industrial structure, and encouraging the development of new technologies and new materials that help save energy and reduce emissions.
As a basic consumable for equipment manufacturing, saw blades are in broad demand.
Bimetal saw blades are mainly used for cutting various steels and non-ferrous metals, such as cast iron, cast steel, rolled round steel, square steel, pipes, etc., and are favored by the manufacturing industry for their high cutting accuracy and high surface cutting efficiency.
Its manufacturing process is to weld two alloy steels with different characteristics together, and then through a series of processes such as machining, heat treatment and other processes to make a consumable tool, the sawtooth part is a metal, the rest is another metal, according to the tooth material and the production process can be mainly divided into high-speed steel band saw blade and carbide band saw blade.
Benefiting from the rapid development and huge demand in the fields of domestic equipment manufacturing, building materials industry, automobile manufacturing industry, etc., according to data from Shangpu Consulting Group, the scale of China's sawing market will reach 4.1 billion yuan in 2022, a year-on-year increase of 9%, accounting for 4% of the global market share1%, and it is expected that the size of China's sawing market will grow to 54 by 2023200 million yuan, a year-on-year increase of 322%。
2.1.2.Domestic substitution has accelerated, marching into overseas markets, and the gap between high-end products has narrowed
Domestic substitution has been accelerated, and overseas market development has been fruitful. With the intensification of inflation in Europe and the United States and other regions, as well as the sharp rise in the manufacturing cost of European and American band saw blade enterprises caused by geopolitical conflicts, the extension of product delivery cycles, and the significant decline in market competitiveness, the demand for overseas markets continues to shift rapidly to the domestic production end.
According to Chinese customs statistics, from 2017 to 2022, the import amount of bimetal band saw blades in China increased from 0$200 million to 0$100 million;And the export amount is from 0$200 million to 0$700 million, with a compound annual growth rate of 3223%。In 2023, it is expected that the net export volume will further expand, and the pace of "going out" of domestic bimetal band saw blade leading enterprises will accelerate.
In the field of low-end products, domestic substitution has been completed, and the competition pattern is stable.
With the improvement of product quality, and geographical advantages, domestic enterprises have gradually occupied the low-end bimetallic band saw blade market, Taijia, Benxi Tools, Fujian Hengerda and other enterprises have gradually become the industry's leading enterprises by virtue of advanced production technology and stable product quality. Other small-scale market competitors are limited by production technology, production equipment, product quality, brand awareness and other conditions, and it is difficult to threaten the market position of leading enterprises.
In the field of high-end products, the gap between domestic and foreign countries has gradually narrowed, and overseas manufacturers still dominate.
For a long time, foreign companies represented by Reynolds of the United States, Amada Co., Ltd. of Japan, and Wekus of Germany have occupied the market of high-end bimetallic band saw blades in China with advanced production technology and excellent product quality.
In recent years, with the development of China's bimetallic band saw blade production process, a group of enterprises led by Taijia Co., Ltd. to master the production process of high-end bimetal band saw blades have gradually emerged, and have formed competition with foreign companies in the field of high-end products.
In the future, the progress of materials will drive the demand for more new material sawing, and the industry will develop towards large-scale and high-quality development.
The progress of the materials industry has brought more applications of difficult-to-cut materials and an increase in the demand for tungsten carbide band saw blades, while the development of new energy and other industries has brought new material sawing needs.
The cost of raw materials and energy will further intensify the competition in the industry, force the improvement of enterprise management capabilities, and promote the development of the industry to high quality and scale. The efficiency of downstream enterprises has been improved and intelligent manufacturing has been accelerated, and high-speed, automated and intelligent sawing has become a development trend.
2.2.The company is a domestic sawing leader, and the product structure continues to optimize and accelerate the development of overseas markets
2.2.1.As a standard-setting drafting unit, the company has leading technology, and has an obvious first-mover advantage in cutting into important customers
The drafting unit of the bimetal band saw blade standard, the first to cut into the domestic substitution of important customer card positions.
At present, the vast majority of band saw machines used in the saw blade are bimetallic band saw blades, the company is the master of the bimetal band saw blade production process and achieve large-scale production of the industry's leading enterprises, the department of bimetal band saw blade national standards and carbide band saw blade industry standard drafting unit, China Aerospace China Academy of Launch Vehicle Technology approved carbide band saw blade qualified business, to achieve carbide band saw blade scale production and import substitution of domestic enterprises.
In 2022, it was awarded the title of "Manufacturing Single Champion Demonstration Enterprise" by the Ministry of Industry and Information Technology.
The company has mastered the production technology of high-end saw blades, breaking the overseas monopoly and benefiting from domestic substitution.
The width of domestic bimetallic bandsaw blades is generally between 27 and 41mm, and high-end bimetallic bandsaw blades below 27mm and above 41mm mainly rely on imports. The company has mastered the technology of 80mm wide bimetallic band saw blade and 13mm ultra-narrow bimetal band saw blade, breaking the monopoly of overseas manufacturers and benefiting from the localization trend of the first chain.
The process of bimetal band saw blade is complicated, and the error is accumulated step by step, and the company's technical barriers are difficult to be surpassed by new entrants in the short term.
Bimetal band saw blade industry is a technology-intensive industry, the need for a deeper technical accumulation, its production process involves more than 10 processes, the error of each link will continue to accumulate, any link deviation will lead to defects in the performance of the final product, this strict requirement for the technical consistency of the complex process, at present only a few domestic enterprises can do.
In addition to production technology, bimetal band saw blade enterprises also need to have continuous research and development capabilities, and upgrade and improve the tooth shape and material of the saw blade accordingly according to the changes in the cutting material and requirements of downstream customers to meet the new needs of the market.
However, new competitors in the market have difficulty in fully mastering the technology and process essentials required for saw blade production in a short period of time, and lack a broad customer base to develop new products based on customer feedback, so product specifications are limited and quality consistency is poor.
The bimetal band saw blade has a wide range of products and low customer sensitivity, and the company has obvious first-mover advantages as a leader in the industry.
Bimetal band saw blade is a consumable product in metal cutting and is the basic accessory of band sawing machine. Compared with cutting materials and processing machinery, the unit of bimetal band saw blade is low, so the end user is relatively less sensitive when deciding which brand of bimetal band saw blade to choose, and the industry recognition, reputation and brand influence of the product are an important basis for their choice. Since forming and enhancing the brand influence of a product is a long-term process, it is difficult for new entrants in the industry to establish a solid brand image in the short term.
At the same time, for the cutting objects of different materials, the design of bimetal band saw blades is quite different. However, it is difficult for new entrants in the industry to master the production process of bimetal band saw blades of various specifications in the short term, and the ability to develop new specifications of tooth profiles according to downstream needs is relatively poor, and they are at a disadvantage in the competition. As a leading enterprise of bimetal band saw blades, the company took the lead in entering the customer chain, with obvious first-mover advantages and a virtuous circle.
2.2.2.The acquisition of Metsen consolidates its leading position and develops synergistically at home and abroad
The acquisition of Metsen consolidates its leading position and integrates resources to give full play to synergistic advantages. The company completed the wholly-owned acquisition of Metsen at the end of September 2022, and through resource integration and collaborative development, the company integrates and empowers Metsen in terms of production capacity layout, manufacturing capacity, marketing network, chain management, technology research and development, etc., and gives full play to its synergistic advantages.
Focus on mid-to-high-end products and continue to optimize the sales structure. 2023H1 mid-to-high-end product sales revenue 1600 million yuan, a year-on-year increase of 1622%, accounting for 5103%, an increase of 1 year-on-year94pct, of which, the sales revenue of tungsten carbide band saw blade is 0400 million yuan, a year-on-year increase of 4349%, accounting for 1334%, an increase of 2 year-on-year95pct；Broadband saw blade sales revenue 0600 million yuan, a year-on-year increase of 4524%, accounting for 1796%, an increase of 4 year-on-year13pct。
Expand the sales network and realize the coordinated development of domestic + international.
In China, the company has completed the layout of seven regions nationwide, set up a Hong Kong subsidiary, set up a wholly-owned subsidiary in East China and North China, and established a logistics distribution center and technical service center, with more than 400 product distribution service providers, and set up a key account department and an e-commerce team to supplement it with direct sales.
Overseas, it has strategically invested in AKG, a century-old famous enterprise in Germany, set up a company in the Netherlands and India, laid out in the European market for many years, established a relatively complete channel system, and has exclusive brands or brands in Canada, New Zealand, Japan, South Korea, Vietnam, Singapore, Malaysia, Indonesia, Thailand, Argentina, Mexico and other places. At present, it has established sales cooperation with dealers in more than 50 countries and regions around the world, and the global layout has begun to appear.
Acquired Luoding Yada to lay out the power supply business, and build a full-category power supply business around consumer electronics + new energy.
Founded in 1995 by Yada Energy, Luoding Yada has been focusing on power products since its inception, with nearly 30 years of experience and industry accumulation, and is a wholly-owned subsidiary of Emerson Inc., a leading enterprise in the global power supply industry, as one of the main production bases in China, its customers are widely distributed in consumer electronics, semiconductor equipment, communications, manufacturing, server centers and medical fields, with deep technical reserves and product production capacity.
Luoding Yada has maintained long-term cooperation and first-class relations with global first-line brand customers, has a high industry reputation and advanced large-scale manufacturing capabilities, has a prominent brand and market position advantage in the global power supply industry, and is one of the leading enterprises in the power supply industry.
The product quality is excellent, and it is the first to benefit from the wave of localization.
The company has a highly automated power supply product production line, which can provide customers with one-stop solutions for power supplyIt has a complete intelligent manufacturing system, independent research and development of factory control and digital cloud early warning system, IT foolproof system, and visualization of process KPIsAt the same time, the traceability system developed can give the product ID, ID backtracking process information and the first-class supplier, production cycle, and batch number of each component, which provides a solid guarantee for the consistency of the product.
The certification cycle of power supply products is long, and the company is the first to enter the first chain of major customers to gain a first-mover advantage.
With years of stable and advanced large-scale manufacturing capabilities and good reputation, Luoding Yada has won the trust of many well-known brand customers at home and abroad. The selection and requirements of the top international customers for the best suppliers are very strict, and the certification cycle is long, and usually only the top power supply manufacturers in the industry will be considered. The power supply belongs to the safety devices with high frequency of daily use, and the quality of the product is directly related to personal safety, and the safety certification of power supply products is a mandatory requirement, and enterprises need to invest a lot of time to obtain certification.
At present, the company has passed product certification in China, the United States, the European Union, Japan, Germany, Australia, Singapore, Switzerland and other countries and regions. In addition, it has obtained IATF16949 automotive certification, enabling it to expand its business into automotive power supplies.
The production capacity continues to expand, and the new energy field is developed as an emerging growth point after consumer electronics.
At present, the company's power supply business has three major manufacturing bases in Luoding, Guangdong, Dalingshan, Dongguan and Xiegang, Dongguan, focusing on the large-scale production and manufacturing of products in the power supply industry, and has significant competitive advantages in R&D and innovation, production and operation, and rapid response.
As of 23H1, the annual production capacity of chargers in Guangdong Luoding base has reached 1600 million, with a cumulative global shipment of more than 2 billion, with a long-term stable, large-scale high-quality production historical record.
The company's production capacity continues to expand, and some new energy power production lines have been put into operation in 23H1, and the profitability is expected to improve in the future with the capacity expansion of the new energy business.
3.1.Consumer electronics power supply: serving high-quality customers at home and abroad, focusing on high-end products
3.1.1.The stock of consumer electronics is vast
Consumer electronics power products are mainly chargers, and the market space is huge. Consumer electronics power products are mainly wired chargers, which are mainly used in the consumer electronics industry, including smart phones, tablets, smart TVs and other smart terminal products.
According to BCC Research, the market size of ordinary chargers will reach 86 in 2022$8.8 billion, accounting for 76% of the cable charger market;The market size of fast charging chargers will reach 27$4.3 billion, accounting for 24% of the cable charger market.
The annual shipment base of smartphones is huge, and the charger market is expected to expand with the growth of charging power.
Due to economic uncertainties such as inflation and exchange rate fluctuations that suppressed consumer demand, China's smartphone shipments in 23Q2 were 06.6 billion units, a year-on-year decrease of 21%, a slight increase of 04%, the prosperity is still low, but the shipment base is still huge.
In the case that the total volume of the mobile phone market has not grown significantly, the mobile phone charger market mainly depends on the stock market.
On the one hand, there is still a lot of room for growth in the average power of mobile phone fast charging, especially the penetration rate of low-end medium and high-power fast charging is still at a low level, and the iterative upgrade of fast charging is expected to increase the sales of mobile phone charger market.
In addition, with the increase of fast charging power, the unit price of mobile phone chargers has increased rapidly, and the penetration rate of fast charging of medium and high-power mobile phones has increased, which will help power supply manufacturers to increase their income.
In addition, GaN (gallium nitride) chargers have the advantages of small size, high power, and good heat dissipation, which are significantly higher than ordinary fast charging. As mainstream manufacturers have successively released GaN fast charging products, market research agency BCC Research predicts that the global GaN charger market will exceed 60 billion yuan in 2025.
3.1.2.Serve high-quality customers at home and abroad, and benefit from the growth of mobile phone sales of large customers
The company's business is developing smoothly, and the increase in domestic mobile phone shipments will drive the growth of the company's power supply business. In 2021, the company provided a maximum guarantee of 20 million yuan for the creditor's rights in the business development process of Huawei terminals and the company's subsidiary Luoding Yada, and with the recovery of the consumer electronics industry and the increase of Huawei's mobile phone market share in the future, the company's power product shipments are expected to further increase.
According to Counterpoints, the Huawei Mate 60 Pro sold 1.6 million units within six weeks of its release, and in October 2023, Jefferies** Huawei has surpassed Apple in phone shipments and the growth trend will continue into '24. As a leader in consumer electronics power supply, the company's holding subsidiary, Luoding Yada, is expected to take the lead in benefiting from the growth of domestic mobile phone shipments.
Shortlisted for Apple's ** chain, it is expected to rely on Apple's huge shipments to continue to improve its performance. According to the list of ** merchants announced by Apple in fiscal year 2022, Taijia shares were included in the Apple ** chain, in view of Apple's strict requirements for the comprehensive strength of the ** business, being included in the ** chain indicates that the company's technical level in the field of consumer electronics power supply has reached the industry-leading level, and it is expected to continue to improve its performance in the future relying on Apple's huge shipments.
3.2.New energy power supply: the market space is broad, and the company is actively expanding production, which is expected to form a long-term increment in the future
3.2.1.Serve high-quality customers at home and abroad, and benefit from the growth of mobile phone sales of large customers
The PV inverter market is huge, and the inverter life is short, and the replacement demand is expected to drive a new round of shipment growth. According to Wood Mackenzie statistics, the global PV inverter market space is expected to reach 300GW by 2025, with revenue exceeding $18 billion.
According to data from the China Photovoltaic Association and China Business Intelligence Network, China's PV inverter production is expected to grow from 62GW in 2017 to 130GW in 2023, with a CAGR of 13%, and the market capacity is huge.
According to Hongda PV data, although the life of PV modules can reach about 25 years, the life of PV inverters is only 10-15 years, the life of electrolytic capacitors used in inverters is about 15 years, and the life of thermal grease is only about 10 years.
The approaching inverter replacement cycle is expected to drive inverter shipment growth.
The inverter industry is highly concentrated, and the advantages of domestic manufacturers are consolidated.
According to Wood Mackenzie data, in 2022, the world's top five PV inverter manufacturers Huawei, Sungrow, Jinlang Technology, Growatt and GoodWe accounted for 71% of the total global PV inverter shipments, and Huawei's share of the global PV inverter market remained the first, with shipments close to 95GW, a significant increase of 83% year-on-year, according to S&P Global data, the global inverter shipments in 2022 were 3266GW, Huawei's shipments accounted for 30% of global shipments.
3.2.2.Serve high-quality customers at home and abroad, and benefit from the growth of mobile phone sales of large customers
The company actively promotes the ramp-up of new energy business capacity, and rapidly expands the production capacity of inverters, optimizers, charging piles and energy storage.
Based on excellent quality performance, large-scale manufacturing capabilities, leading testing capabilities and key customer development and service capabilities, the company is actively expanding the power supply business of new energy photovoltaic power supply, site energy power supply and so on.
In 23H1, the company has put into operation part of the new energy power supply business line, with an additional fixed asset investment of 40 million yuanApproximately 260 new employees were added.
It is expected that the company will continue to expand its production capacity and increase investment in 23H2, and the company's performance is expected to continue to improve with the release of production capacity and order delivery of new energy power supply business.
The importance of energy storage has increased, and there is broad room for growth under policy support.
The energy storage inverter integrates the functions of photovoltaic grid-connected power generation and energy storage power station, overcomes the shortcomings of photovoltaic modules due to weather changes, and improves the quality of the power grid. At the same time, through the storage of electric energy in the trough and the output of electric energy at the peak, the peak power generation of the power grid will be greatly reduced, the capacity of the power grid will be greatly increased, and the utilization rate of the power grid will be improved.
Due to the importance of energy storage to the stability and feasibility of photovoltaic power generation, in March 2021, the State and the Energy Administration jointly issued the "Guiding Opinions on Promoting the Integration of Power Source, Grid, Load and Storage and the Complementary Development of Multi-energy", proposing: optimize the integration of local power supply, grid and load side resources, strictly control the increment of thermal power and energy storage, and encourage the integration of wind, solar, water and storage.
The charging module is the core component of the charging pile, and the company's product shipments are expected to be released with the expansion of the charging pile market.
According to the data of China Business Intelligence Network, China's charging pile market is expected to exceed 9.6 billion yuan in 2023, a year-on-year increase of 81%, and the charging module as the core device of the charging pile accounts for about 50% of the overall cost.
The number of new energy vehicles in China is growing rapidly and the ratio of vehicles to piles is shrinking, and charging modules are expected to become the company's long-term increment.
According to the data of China**.com, the number of new energy vehicles in the country will reach 13.1 million in 2022, accounting for 4% of the total number of vehicles10%, a year-on-year increase of 67 after deducting the amount of scrapping and write-off13%, the number of pure electric vehicles is 10.45 million, accounting for 79% of the total number of new energy vehicles78%。
While the number of new energy vehicles is growing rapidly, the proportion of electric vehicles and charging piles is also shrinking, according to the data of China Charging Alliance, China's vehicle pile ratio has increased from 3 in 20163 down to 2 in 202206. According to the Ministry of Industry and Information Technology's goal of reaching 1 in 2030, there is still huge room for improvement. With the increase of the company's charging pile production capacity and the gradual introduction of customers, the contribution of charging piles to the company's performance is expected to gradually appear.
4.1.Core assumptions
Consumer Electronics Power Supply Business:In 2023, Huawei's new product sales will be strong, which is expected to accelerate the development of the domestic mobile phone industry chain, and the company's holding subsidiary, Luoding Yada, will fully benefit as a well-known enterprise in the power supply industry. It is estimated that the operating income of the consumer electronics power supply business in 2023-2025 will be 1298/15.25/20.0.2 billion yuan, a year-on-year increase of 304 from 2023 to 202545%/17.48%/31.25%。
New energy power supply business:23H1 The company's new energy power supply capacity began to be released, and it is expected that with the gradual expansion of the company's new energy power supply capacity, the company's new energy power supply business is expected to maintain growth. It is expected that the business will achieve revenue of 301/12.34/19.0.3 billion yuan, a year-on-year increase of 81273%/309.76%/54.20%。
Bimetal Band Saw Blade Business:The company is a traditional leader in the sawing field, and the business is growing steadily, and the company's bimetal band saw blade business revenue is expected to be 680/8.50/10.0.4 billion yuan, a year-on-year increase of 2061%/25.06%/18.05%。
4.2.Valuation
We use the PE valuation method to value the company, and at present, the companies that are close to the company's business and comparable to the company in the A** field are Olympian Technology, Eurocom, and Hengerda.
Olympian Technology is mainly engaged in the design, research and development, production and sales of chargers, mobile power supplies and other intelligent terminal charging and storage productsContinental mainly produces switching power supplies, switching adapters, chargers, DC converters, electronic transformers, inductors and LED power supplies and other electronic consumer productsHengerda is mainly engaged in the research and development, production and sales of metal cutting tools such as die-cutting tools, sawing tools, and cutting tools.
The company's advantages in the field of sawing have been continuously consolidated, and the second growth curve has been opened with high-quality customer resources in the field of power supply.
We expect the company's revenue in 2023, 2024 and 2025 to be 2287/36.17/49.1.6 billion yuan, a year-on-year increase of 13385%/58.18%/35.92%, and the net profit attributable to the parent company was 155/2.98/4.1 billion yuan, a year-on-year increase of 1912%/91.70%/37.58%。
The company's PE for 2023, 2024, and 2025 is 41., respectively16/21.47/15.61 times, the company's valuation in 2025 is slightly higher than the average valuation of comparable companies, optimistic about the company's leading position in the field of sawing and the development of the power market, considering that the company's good cooperative relationship with customers in the field of power supply is expected to bring forward increments, giving the company a certain valuation premium.
1.Consumer electronics demand has not recovered as expectedIf the demand for consumer electronics does not recover as expected, the demand for the company's consumer electronics power supply will also be affected accordingly.
2.The new energy boom is less than expected:If the prosperity of the new energy industry decreases, the company's new energy power supply business will be negatively affected.
3.Increased competition in the sawing business:If competition in the sawing industry intensifies, the company's dominant position may be challenged.
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