Hang Ke Technology (688006): a leading domestic supplier of lithium battery post-processing equipment

Hang Ke Technology (688006): a leading domestic supplier of lithium battery post-processing equipment

The company is a first-class supplier of lithium battery post-processing equipment with integrated capabilities and first-line customer resources.

The company mainly researches, develops, manufactures and sells core equipment for post-processing systems of lithium-ion battery production lines such as manual charging and discharging equipment. It is currently one of the few domestic post-processing equipment that can export complete sets of equipment and work closely with mainstream lithium battery manufacturers such as Samsung and LG.One of the manufacturers.

The average annual compound growth rate of the company’s net profit attributable to its mother from 2015 to 2018 was 71.

47%.

This time, the board will issue 41 million new shares at a price of 27.

43 yuan / share.

The expansion of power battery drives the rapid growth of demand for lithium-ion equipment, binding high-end customers to keep the technology ahead.

The production process of lithium battery cells is divided into pole piece production, cell assembly, and post-processing. The value of post-processing transfer equipment accounts for about 1/3.

High-tech lithium battery is expected to have a global compound annual growth rate of about 21 in 2019-2023.

77%, the main increase is contributed by power batteries. It is estimated that the global power lithium battery post-processing equipment market space will be 36.3 billion in the next five years.

At present, the post-processing equipment has been completed domestically. However, the domestic lithium battery equipment manufacturers have generally scaled down and supplied more domestic customers.

Lithium battery equipment is a customized product that combines demand-driven and active development. Hang Ke Technology and overseas giants have cooperated in depth, which is conducive to closely tracking downstream advanced technology and equipment requirements, maintaining existing and leading technological advantages.

Leading technology + complete product line to create a high gross profit, high-quality cash flow leader, profitability of investment and investment projects increased significantly after commissioning.

The company’s detection accuracy of charge and discharge equipment and charge and discharge efficiency are leading in the industry, and its products cover all mainstream battery forms.

In 2018, the company’s storage volume accounted for 20% of the domestic post-processing equipment output value. As of the end of March 2019, the company had orders in the order of US $ 1.9 billion and will continue to contribute revenue.

The company’s gross profit margin remained above 45%, and the downstream customers paid back in a timely manner. The company’s account receivable turnover rate was the highest in the industry, and the 重庆耍耍网 overall cash flow was good.

Construction and production line construction period 1.

In 5 years, it is expected that the annual average profit of the project will be maximized after reaching production.

450
,000 yuan, close to the company’s 2018 annual net profit.

Investment suggestion: The company is expected to realize net profit attributable to mothers in 2019-2021.

03/6.

69/9.

51 ppm, corresponding to an EPS of 1 after release.

00/1.

67/2.

37 yuan.

In the next five years, the power battery industry is expected to usher in an oligopoly competition. The company belongs to the technology leader in the lithium battery charge and discharge equipment segmentation industry, and has complete post-processing equipment integration capabilities and international first-line quality customer resources. It has continued to make profits in recent years.The growth is high, so the PE estimation method is used, with reference to the forecast levels of comparable companies such as Yinghe Technology and Nebula. The lithium battery equipment industry’s PE range in 2019 is 21-26 times, taking into account the company’s ROE level, cash back situation and the next three years.The compounded growth rate of net profit attributable to mothers is better than that of comparable companies, so the company’s 2019 PE estimate gives the company a 15% premium over comparable companies, and the corresponding division interval is 24.

2-29.

9 times, corresponding to the preset interval of 24.

2-29.

9 yuan / share, corresponding to a market value range of 97?
12 billion yuan.

New stock premium effect: According to historical data, new stocks 30 days before listing have obvious premium characteristics. According to industry-wide statistics, the premium rate is 47%?
69%, so the possible price range for the company at the initial stage of listing is 35.

5?
50
5 yuan / share.

Risk reminder: New energy vehicle demand and power battery expansion are less than expected. Special Note: The reasonable interval range predicted in this report is not the initial price performance of the market, but the reasonable price range under the condition that the existing market environment remains basically unchanged.