(Report Producer/Author: Guosheng Securities, Zheng Zhenxiang, She Lingxing)
1. With many years of experience, the leader in the field of magnetic components
1.1 Magnetic components + power supply products, creating a global leader
The company is a world-famous magnetic component and power supply technology Solution Provider. The company was established in Shenzhen in 1995. It entered the power supply industry in 2000 and obtained the BABT production quality certification for the telecommunications industry. In 2015, it was listed on the Shenzhen Stock Exchange . The company is mainly engaged in the development, production and sales of magnetic components such as electronic transformers and inductors , as well as switching power supply products such as power adapters, power battery chargers and customized power supplies. The company's magnetic component products are mainly used in electronic equipment such as information, UPS power supply, automotive electronics and inverters. The switching power supply products are mainly used in network communications, consumer electronics, power tools, LED lighting, industry and instrumentation and other fields.
company has been deeply involved in the fields of magnetic components and power supply products for a long time. Magnetic component products are divided into three categories according to their characteristics: power transformers , switching power supply transformers and inductors. Among them, electronic transformers including power transformers and switching power supply transformers are the company's leading products; the company's inductor products include photovoltaic inverter inductors, high-power inverter inductors, PFC inductors, filter inductors, rectifier inductors, resonant inductors, Multiple series such as output inductors and chip inductors. Switching power supply products can be divided into three categories: power adapters, power battery chargers and customized power supplies according to product characteristics. Specific products include: power adapter, power battery charger, network communication power supply, industrial and instrument power supply and other series. Among them, magnetic components are mainly used in UPS power supply, automotive electronics, photovoltaic energy storage, charging piles and other electronic equipment fields. Power supply products are widely used in network communications, consumer electronics, power tools, LED lighting, industry and instrumentation and other fields.
1.2 Scale is gradually reflected, and the proportion of domestic sales is increasing year by year.
The company's revenue is growing steadily, and will gradually accelerate in 2021 and 2022Q1. From 2017 to 2021, the company's operating income has a compound growth rate of 15.58%, and the year-on-year growth rate of revenue in 2021 will reach 28.83%, showing an accelerating trend. 2022Q1 further accelerated, achieving revenue of 465 million, a year-on-year growth of 39.13%. The net profit attributable to the parent company in 2021 was 26 million yuan, a year-on-year decrease of 87.25%, which was mainly caused by the recognition of equity incentive expenses and losses from changes in the fair value of trading financial assets.
Due to the increase in raw material prices, profit margins were temporarily under pressure, and the expense rate gradually decreased during the period. The company's overall gross profit margin was relatively stable from 2017 to 2020. In 2021 and 2022Q1, the gross profit margin declined due to the price increase of bulk raw materials and the delayed transmission of customer price increases. The decline in net interest rate in 2021 compared with 2020 is mainly due to the recognition of equity incentive expenses, and the net interest rate has recovered in 2022Q1. Since 2019, the company's overall period expense ratio has shown a downward trend, reaching 10.05% in 2022Q1.
magnetic components and switching power supply two-wheel drive, the magnetic components business accounts for a slightly higher share and gross profit margin. The company's magnetic components business accounts for a slightly higher proportion than the switching power supply business. The revenue in 2021 will be 916 and 644 million yuan respectively, with year-on-year growth rates of 30.30 and 18.82% respectively. Compared with the growth rate in 2020, the growth rate has increased slightly. From the perspective of gross profit margin, the gross profit margin of the magnetic components business is slightly higher than that of the switching power supply business. In 2021, due to rising raw material prices, both will decline slightly.
company's export business accounts for a relatively high proportion, and the proportion of domestic sales has gradually increased in recent years. The proportions of export business from 2017 to 2021 are 63.64%, 63.35%, 63.21%, 61.72%, and 53.18% respectively. In recent years, the company has vigorously expanded domestic customers, and the proportion of domestic sales has gradually increased. In 2021, the proportion of domestic sales will increase to 46.82%.
has increased its research and development, and the results have emerged with high investment. The company has increased its investment in research and development. In 2021, the company's research and development expenses will be 69.62 million yuan, accounting for 4.22% of operating income. Continuing the upward trend for many years, the number of research and development personnel has increased to 471, accounting for more than 10% of the total employees.With high R&D investment, the company's R&D results have emerged:
New energy vehicle field: breakthroughs in the design of magnetic components used in OBC, DC/DC converters and inverters, with high reliability, high power density, high integration, and high automation Manufacturing and other advantages; green energy field: successfully developed high-power photovoltaic inverter above 300KW for boost inductors and inverter inductors. It adopts a new design scheme and a new manufacturing process to make the product cost-effective and weight-effective. It has great advantages; In terms of research and development of light power battery charging products: 1KW high-power, wide-range and high-reliability charging technology and products have achieved breakthroughs, and outdoor high-grade waterproof charging products have been successfully mass-produced; In terms of research and development of high-end consumer electronics products power adapters: The high-power miniaturized 220W adapter was successfully mass-produced, the adapter platform products with higher power and efficiency are progressing smoothly, and the PD standard adapter series products were successfully launched on the market.
1.3 The ownership structure is stable and the proportion of actual controllers is high. The controlling shareholder of
company is Ganzhou Shengyan Investment Co., Ltd., and the actual controller is Xiao Keng. According to the first quarter report of 2022, Ganzhou Shengyan Investment Co., Ltd. directly holds 31.77% of Shenzhen Click's shares and is the company's controlling shareholder. Mr. Xiao Keng, the company's chairman and general manager, indirectly holds 29.9% of the company's shares through Ganzhou Shengyan Investment Co., Ltd. and Ganzhou Xinlianxin Enterprise Management Co., Ltd., and is the actual controller of the company. The company's second largest shareholder, Click Technology Co., Ltd., is a company controlled by Mr. Xiao Keng's mother, Ms. Gu Jie, and his sister, Ms. Xiao Jin. Ms. Gu Jie and his sister, Ms. Xiao Jin, are persons acting in concert with Mr. Xiao Keng. Huizhou , Xinfeng , Anyuan , and Anhui Kelike are all subsidiaries to expand production capacity; Haiguang Electronics is for the integration industry; CRRC Times Electric Vehicle Co., Ltd. is for the layout of the automotive business .
2. Magnetic components: The incremental market is vast in multiple application scenarios
Magnetic components are the collective name for transformers and inductors. Among them: Transformer refers to a static electromagnetic device that uses the principle of electromagnetic induction to realize electric energy conversion or transfer electric energy from one circuit to another. Its main functions are isolation and voltage conversion. Electronic transformers play an important role in electronic equipment, especially in power supply equipment. AC voltage and DC voltage are almost all obtained through transformer conversion and rectification. Electronic transformers are usually divided into: power transformers, switching power supply transformers, audio transformers, pulse transformers, special transformers, etc. according to their uses. inductor is an energy storage component that uses the principle of electromagnetic induction to convert electrical energy into magnetic energy and store it. Its structure is similar to a transformer, but there is only one winding . The main function of the inductor is to screen signals, filter noise, stabilize current, and suppress electromagnetic wave interference.
Transformers are the main incremental market for magnetic components, and the market size is expected to reach 78.68 billion in 2025. Among magnetic components, transformers have developed into the main market for magnetic components due to their multiple application scenarios and continuous innovation in the technology industry. According to data from the China Electronic Components Industry Association, the global electronic transformer market will reach 66.84 billion in 2021, a year-on-year increase of 8.5%. It is expected that the global electronic transformer market will reach 78.68 billion by 2025, with a CAGR of 5.0% from 2020 to 2025. In the field of downstream applications, lighting is still the largest application market for electronic transformers, accounting for about 24% of global downstream applications. Household appliances and communication equipment account for 15% and 14% respectively. It is expected that in the future, with the development of new energy vehicles, With the development of photovoltaic, industrial control, consumer electronics and other fields, the proportion of its downstream applications in the field of electronic transformers will increase significantly.
Global transformer manufacturing plants are concentrated in Japan, Taiwan and Mainland China. Global electronic transformer manufacturers are mainly concentrated in China, Taiwan, and Japan. Key companies include Delta, Lite-On, TDK, Sumida, Haiguang, Jingquanhua, Click, etc. Among them, local Chinese companies account for approximately 47% of the global market share, Taiwanese companies account for approximately 18% of the global market share, and Japanese manufacturers account for approximately 14% of the global market share.
The global inductor market size is expected to reach US$7.6 billion in 2026. According to ECIA data, global sales of inductors in 2019 were approximately US$4.6 billion. According to the China Electronic Components Industry Association, the global inductor market size will increase by approximately 7.5% in 2020. The global inductor market in 2020 can be calculated The scale is approximately US$4.9 billion. At the same time, based on the global CAGR of 7.5% from 2020 to 2026, the global inductor market size in 2026 will be approximately US$7.6 billion. In the downstream application fields, from the output value side, mobile communications, computers, industry, and automobiles account for 35%, 20%, 22%, and 13% respectively, which are the main application scenarios. (Report source: Future Think Tank)
Japanese companies occupy the main market share of global inductors. At present, the global inductor market is mainly dominated by Japanese manufacturers. In 2019, the market shares of Murata, Taiyo Yuden, and TDK were approximately 14%, 14%, and 13%. They were the top three inductor companies in the world. Japanese companies accounted for a total of 40%~50% global market share.
According to application fields, the downstream demand for magnetic components can be divided into automotive electronics, new energy, consumer, UPS and other fields, covering OBC, wind energy, photovoltaic, energy storage, consumer electronics, industrial control and other fields, and the application scenarios are very broad. Among them, the electronic transformer usually plays the role of voltage transformation, filtering, and energy storage in products, while the inductor solves problems such as EMI and electromagnetic compatibility. The current new application scenarios use higher amounts of magnetic components than traditional industries. For example, in new energy vehicles, due to the addition of new components such as OBC, high-frequency capacitors, , and inductors, the usage scenarios are compared to the multimedia in traditional automobiles. , high-frequency signal processing and other needs are much richer, and the demand for magnetic components has also greatly increased.
2.1 The value of bicycles has increased, and the products have successfully entered the Volkswagen ID series models.
The new energy vehicle market has performed strongly. At present, the growth rate of new energy vehicles has accelerated significantly. According to data from the China Automobile Association, my country's new energy vehicle sales have a compound annual growth rate of 47.34% from 2016 to 2021. Among them, the national sales of new energy vehicles in 2021 were 3.521 million units, a year-on-year increase of 157%, ranking first in the world for seven consecutive years, and new energy vehicles accounted for 13.4%. At the same time, my country's new energy vehicles are expected to continue their rapid penetration in the future. According to the "New Energy Vehicle Industry Development Plan (2021-2035) Draft for Comments" released by the Ministry of Industry and Information Technology in December 2019, it is clearly stated that pure electric passenger vehicles will be the mainstream in the future. , by 2025, new energy vehicle sales will account for about 25%.
International car companies are accelerating the implementation of electrification. At present, internationally renowned car companies have clearly proposed their own electrification strategic plans. For example, Volkswagen plans to launch 15 MEB new energy models before 2022; it will launch 15 PPE new energy models before 2025, with sales of new energy vehicles reaching 1 million units, accounting for 10% of the company's total. The total sales volume is 20%-25%; 70 pure electric models will be launched by 2028, and the production of electric vehicles will reach 22 million. The global electrification trend is obvious, which will inevitably lead to an increase in the value of automotive electronics, which will fully benefit magnetic components.
Compared with traditional consumer electronics, automotive electronics requirements are more stringent. Different from traditional consumer electronics, automotive electronics are related to vehicle driving safety and may face a more harsh environment during use, and have stricter quality requirements. For example, the temperature requirements for components around the engine are between -40℃~150℃, while the temperature requirements for ordinary civilian consumer electronics are usually 0~70℃. In addition, for indicators such as humidity, mold, harmful gas erosion, and service life, Automotive electronic requirements are higher than consumer electronics. This has greatly increased the difficulty of manufacturing automotive electronics and also put forward higher requirements for related companies.
The cost ratio of automobile electronics to bicycles has increased significantly, and the scale of the global automotive electronics market has steadily increased. The automobile market is currently in a period of consumption upgrading, in which automotive electronics is an important support in the automobile industry. With favorable policies, technical guidance, environmental protection and other favorable factors, the industry as a whole is showing a rapid growth trend. As the value of automotive electronic bicycles increases, its proportion in the cost of the entire vehicle continues to increase.Taking passenger cars as an example, according to data from CCID think tank , the proportion of passenger car electronics costs in the total vehicle cost has increased from 3% in the 1970s to about 40% in 2015, and is expected to reach 20% in 2025. Reach 60%. With the increasing level of automotive electronics and the increase in the cost of single-vehicle automotive electronics, the scale of the automotive electronics market is rising rapidly. According to China Association of Automobile Manufacturers data, it is expected that the global automotive electronics market will exceed 2 trillion yuan by 2021. Domestic automotive The size of the electronics market will reach 889.4 billion yuan.
Magnetic components are widely used in automobiles, mainly used in OBC (on-board charger), DC-DC converter , inverter, electric drive & electronic control, BMS (car battery management system) and other scenarios. The function of OBC is to convert AC power (220V or 380V) into DC power and charge the new energy vehicle power battery. At present, OBC power conversion still requires electromagnetic conversion, which is an important application scenario for magnetic components. At the same time, we believe that the current trend of overcharging/fast charging is obvious for the new energy vehicle industry. While charging efficiency and platform voltage are increasing, the performance requirements for magnetic components are also increasing, and the value of bicycles is expected to rapidly increase in this process.
passed the vehicle regulations verification and successfully entered the Volkswagen supply chain. Automotive electronics has high requirements for R&D technology, long certification cycle, high added value, high qualification requirements for suppliers, and will not easily change suppliers. Therefore, there is a certain blocking effect on the introduction of the supply chain of automobile companies. The company has passed the IATF16949 vehicle regulation certification, and in 2018 passed the KOSTAL certification as an overseas Tier1 car company supplier. It has successfully entered the Volkswagen supply system and become the main supplier of its MEB platform, providing OBC and other supporting products. The company's car-grade products have been recognized by customers, and its cooperative customers have expanded to Volkswagen, Audi, BYD, Hyundai, Great Wall, Xpeng, NIO, Ideal and more international car companies and new domestic car manufacturing forces.
Volkswagen MEB platform solution positions Volkswagen ID models, and cooperative brands are rapidly expanding. The MEB platform is an exclusive platform for Volkswagen to develop electric vehicles. It is mainly used for A and B-class vehicles. Its wheelbase, wheelbase, and chassis height can be adjusted according to different models. At the same time, pure electric vehicles eliminate the need for engines, exhaust pipes, etc. components, the interior space in the car is more spacious and comfortable. It has proposed modular solutions for motors, , batteries and other aspects and shared the platform with other car companies, lowering the technical threshold for electric vehicle manufacturing and improving scale effects. At present, Volkswagen has cooperated with Audi, Skoda, Cupra and other car companies to launch a variety of models. For example, Ford will cooperate with Volkswagen to launch 4 electric models based on the MEB platform by 2024. The MEB platform has broad application scenarios. (Source of the report: Future Think Tank)
2.2 With its customer lineup in the luxury photovoltaic field, Haiguang is expected to inject new momentum
Global carbon neutrality will promote a high photovoltaic boom, and affordable access to the Internet will set the tone for the healthy development of China's photovoltaics. Since 2018, major economies such as the United States, the European Union, and China have successively introduced carbon reduction policies, and the global photovoltaic industry has benefited from and is operating at a high level of prosperity. According to BNEF data, the global annual newly installed photovoltaic capacity is expected to be 183GW in 2021, with a CAGR of +19.22% from 2018 to 2021. The newly installed photovoltaic capacity is expected to be 334GW in 2030, with a CAGR of +6.91% from 2021 to 2030. There is broad room for growth. China's photovoltaic industry has experienced multiple rounds of electricity price adjustments. After the rush for installation from 2015 to 2017, the industry cooled down. In 2021, the era of grid parity will begin, which is of great significance to the long-term healthy development of the industry. According to National Energy Administration data, the country's annual new photovoltaic installed capacity in 2021 will be 54.88GW, +13.86% year-on-year, and the 2019-2021 CAGR +35.00% has exceeded the 2017 level.
magnetic components are widely used in photovoltaic energy storage, and the market space is broad due to the rapid growth of the industry.Magnetic components are an important part of the inverter, which is the core part of photovoltaic energy storage. They can play key roles such as energy storage, voltage boosting, filtering, and eliminating EMI. Under the high prosperity of photovoltaic energy storage, it has driven the growth of the photovoltaic energy storage inverter market. , according to Big Bit Industry Research estimates, it is expected that the magnetic component space in the global photovoltaic energy storage inverter market will increase from 4.89 billion yuan in 2020 to 11.42 billion yuan in 2025, with a CAGR of +18.49%, and the market space is vast.
In the current photovoltaic field, the company has successfully developed 320KW level boost inductors and inverter inductors for high-power photovoltaic inverters, which have leading technical advantages and competitiveness. At the same time, the company has formed boost inductors and inverter inductors for photovoltaics. , common mode inductors, differential mode inductors, drive transformers and auxiliary transformers and other products. The direct/indirect customer lineup in the photovoltaic field is luxurious. According to Wood Machenzie statistics, 6 Chinese companies accounted for 6 of the top 10 global photovoltaic inverter company shipments in 2020, namely Huawei , Sungrow , Growatt, Jinlang Technology, Shangneng Electric and Goodwe . According to the company's disclosed information, the company's current direct or indirect customers in the photovoltaic field include mainstream photovoltaic and energy storage companies such as Sungrow, Jinlang Technology, Goodwei, Growatt, and Shangneng Electric. We believe that in the future, after the company controls and collaborates with Haiguang Electronics, it will introduce Haiguang Electronics' Huawei resources to a certain extent. By then, the company's direct or indirect customers may cover more than 60% of the world's photovoltaic companies.
2.3 Super fast charging is expected to become an industry trend, and related products are expanding smoothly
According to Astute's forecast, the number of global electric vehicle charging piles will reach 2.801 million units in 2027, compared with 905,000 units in 2020, with a CAGR of approximately 17.5%; Market revenue will reach approximately US$93 billion in 2027, compared with US$26 billion in 2020, with a CAGR of approximately 20.0%. Astute predicts that the Asia-Pacific region, dominated by China, will account for 80% of the charging pile share in the future and dominate the global market, mainly due to the large-scale expansion of charging networks in China and the rapid increase in daily demand for electric vehicles.
my country’s charging piles maintain a high growth rate and their prosperity continues unabated. According to data from the China Charging Alliance, as of April 2022, the number of charging piles in China is 1.332 million (577,000 DC charging piles, 755,000 AC charging piles, and 485 AC and DC integrated charging piles). An increase of 100,000 units, a year-on-year increase of 53.4%. After entering 2022, my country's basic charging facilities are accelerating significantly. From January to April 2022, the increase in domestic charging facilities will be 707,000 units, including 185,000 new public charging piles, yoy 204.6%, and 52.2 new private charging piles. million units, yoy 511.1%.
super fast charging: a new outlet in the field of charging piles. Compared with the refueling speed, the slow charging speed has long been one of the pain points of new energy vehicles. In the case of slow charging, if it takes more than 2 hours to charge on the highway, the queue for charging may be Unavoidable. At present, super fast charging solutions are gradually appearing in people's vision. When the charging voltage exceeds 800v and the power exceeds 500kw, the cruising range of 5 minutes of charging can be close to 500km, which is very close to the traditional refueling time and cruising range. When the fast charging era comes, the voltage will eventually increase from 200V to 1000V or even above. In this process, in order to adapt to the current low-voltage stock charging piles, charging piles need to install DC-DC boost modules, which will greatly Increase the demand for magnetic components to a certain extent.
Click high-frequency water-cooled fast charging products have been successfully developed and have a rich direct/indirect customer base. Currently, in the field of charging piles, Click has mass-produced magnetic components for 15KW-30KW level charging pile modules; successfully developed water-cooled 40KW level magnetic components for charging pile modules; developed a single topology , high reliability, High power density 50KW&60KW fast charging three-phase water-cooled transformer and inductor; for super fast charging, the company has developed 175KW&350KW super fast charging pile with water-cooled high-frequency magnetic components. According to the information disclosed by the company, the current direct or indirect customers of the company in the field of charging piles include Shenghong, Youyou Green Energy, Infineon, Costar and other companies.
3. Switching power supply: It continues to work, and the future is promising.
Switching power supply is a device that utilizes the switching characteristics of semiconductors and uses high frequency for switching control to maintain stable power output. It belongs to the same category of electronics as linear power supply Power supply category. Switching power supplies can be divided into three categories according to their functions: AC/DC switching power supply: a converter that converts AC to DC, which is the most widely used in switching power supplies; DC/DC switching power supply: a converter that converts DC into DC variable voltage converters, including Buck, Boost, etc.; DC/AC switching power supply: a converter that converts DC into AC.
Compared with linear power supplies, switching power supplies have the outstanding advantages of high efficiency and small size. Unlike linear power supplies that rely on continuous consumption of power in the transmission transistors to adjust the output voltage, switching power supplies achieve voltage regulation mainly by changing the frequency of the switching time (i.e., duty cycle), and their transmission transistors are constantly on at low power consumption and fully conductive. and fully off state, and takes very little time in high-power transitions, thus minimizing energy waste. At the same time, due to the smaller size of the transformer, the switching power supply is smaller and lighter than the linear power supply. The
switching power supply can effectively replace linear power supplies in application scenarios that require higher power conversion efficiency and smaller size, and has gradually become a mainstream product in the power supply market. (Report source: Future Think Tank)
3.1 Multiple factors have boosted demand, and the prototype of domestic leading companies has shown that the
switching power supply market continues to grow, and the Chinese market is developing rapidly. In recent years, the sales of consumer electronics products such as PCs, refrigerators, smartphones and adapters have increased rapidly, driving the global switching power supply market to continue to grow. According to statistics and forecasts from Research and Markets, the global switching power supply market will reach US$23.8 billion in 2020 and is expected to reach US$29.2 billion in 2026, with a CAGR of 3.6% during the period. Among them, benefiting from the demographic dividend and high demand from regional manufacturing centers, China's switching power supply market is developing rapidly. According to statistics from the China Power Supply Association, China's switching power supply market size was 150.30 billion yuan in 2019. Taking into account the impact of the epidemic and the slowdown in growth in the downstream areas of the switching power supply industry, it is expected to reach 154.06 billion yuan in 2020. The application fields of
are highly concentrated, with industrial and consumer electronics being the two major application sectors. According to statistics from the China Power Supply Association, in 2019, my country's switching power supplies were most widely used in the industrial field, accounting for 54% of the entire market; consumer electronics followed, accounting for 33%.
Driving factor one: The industrial automation market continues to be booming. The industrial field is the largest downstream application field of my country's switching power supply products. As the population ages and labor costs continue to rise, the industrial automation process will further accelerate, and the industrial automation market is showing high prosperity. According to China Industrial Control Network data, China's automation market size reached 205 billion yuan in 2020, with an average annual compound growth rate of 8.08% from 2015 to 2020. It is expected that the industry's market size will reach 302.4 billion yuan in 2025. Driving factor two: Consumer electronics products are constantly being introduced and the market space is vast. With the launch of new consumer electronic products such as TWS headsets, smart bracelets, and smart watches, as well as the new round of demand for tablet computers and other electronic products generated by home learning and working under the normalization of the epidemic, there is still broad room for growth in consumer electronics. According to China Communications Society statistics, China's new consumer electronics machine shipments in 2020 were 540 million units, and it is expected that shipments in this field will reach 730 million units in 2025. In addition, the emerging automotive industry including data center infrastructure and portable car chargers is also driving the steady growth of the switching power supply market.
The domestic switching power supply market is fragmented and has many players. With the transfer of the switching power supply industry, my country has developed into an important production base for this type of products. The power supply industry has developed relatively maturely and has formed three major economic circles in the Pearl River Delta, Yangtze River Delta , and the capital economic circle including Beijing, Tianjin, and Hebei. Industrial Area. According to statistics from the China Power Supply Association, there are currently more than 1,000 domestic companies producing switching power supplies.
The high value-added field is dominated by large international manufacturers, and the prototypes of domestic leading companies are emerging.There are many players in the switching power supply market in mainland China, but products with high added value and high quality requirements are mainly provided by Taiwan-funded and large international manufacturers, including Delta Electronics , Lite-On Technology, Kangshu Technology and Schneider Electric. Through more than 30 years of technological accumulation, mainland China's switching power supply companies have gradually narrowed the gap with the international advanced level in terms of production technology and technology, and have also formed companies including Clic, Continental, Moso Power, Chaoyang Power and Jingquanhua. Domestic switching power supply head manufacturers including.
3.2 The company continues to prosper, and multiple advantages can be expected in the future.
company's switching power supply products can be divided into three categories according to product characteristics: power adapters, power battery chargers and customized power supplies. Specific products include: power adapters, power battery chargers , network communication power supply, industrial and instrument power supply, LED driver and other series, which are widely used in consumer electronics, power tools, industrial instruments, network communications and other fields.
company's switching power supply business continues to expand, with significant growth in production and sales in 21. From 2019 to 2021, the company's switching power supply revenue was 462 million yuan, 542 million yuan, and 644 million yuan respectively, and the revenue scale continued to expand. Among them, the year-on-year growth rate of switching power supply revenue in 2021 reached 18.80%, mainly due to the significant increase in production and sales scale in that year. In 2021, the company's switching power supply inventory reached a historical peak, which was mainly due to early stocking based on customer demand.
The company has multiple advantages of "technology + R&D + manufacturing + quality management" in switching power supplies.
(1) Technical advantages: The company continues to innovate in the field of power supply technology and continuously improves power conversion efficiency, power density and reliability. Existing power supply technologies include: resonant conversion technology, quasi-resonant conversion technology, flyback conversion technology, forward conversion technology, full (half) bridge conversion technology, synchronous rectification technology, active power compensation technology, and battery charge and discharge management. Technology and multi-cell battery balance charging management technology and intelligent digital power control technology, etc.
(2) R&D capabilities: The company is equipped with relatively complete R&D and testing equipment, and has established EMC laboratory, EMS laboratory, environmental laboratory, performance and safety testing laboratory, which can quickly and effectively solve new product development Required testing and verification to improve product development efficiency.
(3) Manufacturing advantages: According to the company's official website, the company has more than 150 automatic production lines and provides more than 8 million units of various power products and 150 million high and low frequency transformers and other products to the global market every year. , providing high-quality products and services to more than a dozen Fortune 500 companies.
(4) Quality management advantages: The company has advanced inspection and testing laboratories to test and verify the characteristics and functions, reliability, safety, environmental protection requirements, etc. of new products. It has currently passed the ISO9001 quality management system certification , ISO14001 environmental management system certification, IATF16949 automotive quality management system certification and IECQ QC 080000 hazardous substances process management certification and many other safety certifications, and environmental protection and energy efficiency certifications.
company continues to prosper, and its research and development projects have achieved fruitful results. The company's key R&D achievements in 2021 include: (1) In terms of research and development of lightweight power battery charging products: 1KW high-power, wide-range and high-reliability charging technology and products have achieved breakthroughs, and outdoor high-grade waterproof charging products have been successfully mass-produced; (2) In In terms of research and development of power adapters for high-end consumer electronics products: the high-power miniaturized 220W adapter was successfully mass-produced, the adapter platform products with higher power and efficiency are progressing smoothly, and the PD standard adapter series products were successfully launched on the market. Next, the company will continue to promote the research and development of lithium battery 84V/12A fast charger, green and efficient PD45W smart adapter power supply, high-efficiency 350W laser projection switching power supply and low-noise 120W audio power supply R&D projects to be put into mass production.
4. Acquisition of Haiguang Electronics, completing the major integration of the magnetic component industry
4. 1 Haiguang Electronics: the leader in state-owned genetic magnetic components, with a complete component product system
Haiguang Electronics has deep state-owned genes, and is expected to acquire actual control through a second acquisition in the future.Haiguang Electronics was founded in 1988 by China Tongguang Electronics, a subsidiary of China Electronics, Shenzhen Nanyou Group, a subsidiary of Shenzhen State-owned Assets Supervision and Administration Commission, and Tianjin Optoelectronics Group, a subsidiary of Tianjin State-owned Assets Supervision and Administration Commission. It has a strong state-owned background. Shenzhen Nanyou and Tongguang Electronics withdrew their shares in 2001 and 2009 respectively. In December 2021, the company acquired a 54.25% stake in Haiguang Electronics from Tianjin Optoelectronics for a consideration of 186 million yuan; in March 2022, it signed an agreement with Li Donghai, a shareholder of Haiguang Electronics, to acquire a 10% stake in Haiguang Electronics for a consideration of 22.28 million yuan. The total transaction volume of the two acquisitions is 208 million yuan. It is expected that after the acquisition is completed, the company will hold 64.25% of the equity of Haiguang Electronics and gain actual control. (Report source: Future Think Tank)
is deeply involved in magnetic component technology and has made multiple transformations to achieve a broad layout in the industry. When Haiguang Electronics was founded, its main products were power transformers, which were used in color TV and electrical appliances. Subsequent application terminals expanded to audio, remote control power supplies, etc. In 1997, Haiguang Electronics transformed for the first time, providing supporting transformers for display appliances; in 2001, it transformed for the second time. , laying out network transformers, linear switches, etc. in the communications industry; in 2003, Haiguang Electronics fully intervened in Huawei's ADSL and In photovoltaic and other new energy fields, we accelerated the layout of automation; in 2016 we deployed in the electric vehicle industry, and in 2018 we passed the IATF16949:2016 version of the vehicle regulation certification. Haiguang Electronics has been deeply involved in the field of magnetic components for many years, focusing on transformers and inductors. It has a wide range of terminal applications, mainly in the three major directions of communications (communication power supply and communication network), new energy (photovoltaic energy storage and charging piles), and new energy vehicles. In addition, It also has certain layouts in the fields of IT (cloud services), consumer electronics (home intelligence), high-end electronic instruments and equipment, etc.
Haiguang Electronics is operating well. Haiguang Electronics' business is expanding rapidly, and its revenue scale has increased rapidly. In 2021, it will achieve revenue of 1.166 billion yuan, +18.1% year-on-year. In 2021, due to the increase in prices of upstream raw materials, Haiguang Electronics' net profit level is under pressure. The net profit in 2021 is 12.61 million yuan, -18.6% year-on-year, and the net profit margin is -0.49pct year-on-year to 1.08%. We believe that thanks to the continued increase in downstream demand, Haiguang Electronics will continue its current steady growth trend in 2022, and is expected to achieve a revenue growth rate of 25% to 30% in 2022, reaching approximately 1.45 to 1.55 billion in revenue, net Due to the current stabilization of upstream copper prices, profits have recovered slightly, reaching approximately 15 to 20 million.
has a complete product system and accurately positions customized production. Haiguang Electronics has been deeply involved in the industry for many years and has accumulated a complete product system, including multiple series of transformers and inductors such as flat panels and SMDs. It is suitable for photovoltaics, communication networks, power frequency, high frequency and other power and electronic application scenarios. The operating frequency Covering Hz to GHz level, capacity from mW to kW level, load from uA to 500A level, size from mm to m level, the component level is complete and covers a wide range. Relying on a complete product system, combined with product and technology research and development advantages, Haiguang Electronics has strong competitive advantages in the field of customized card slots for customized, multi-category, and small-batch application needs, and can achieve flexible switching of production on this basis.
Communications + New Energy Leader has high-quality customer resources, and product quality is recognized by Huawei and Emerson. As an established and well-known company in magnetic components, Haiguang Electronics covers many domestic and foreign leading enterprises in communications, new energy vehicles, photovoltaic energy storage, charging piles, etc. as end customers. Haiguang Electronics has been rated as one of Huawei's "First Green Partners" and Emerson's "Excellent Supplier". Its product quality is recognized by the industry and it has rich customers with high-quality resources.
4.2 Integrate advantageous resources and join forces to empower magnetic component products + customer portfolio
Some of the specializations are complementary, and the merger complements the magnetic component product portfolio. The company and Haiguang Electronics have strong physical and technological advantages in magnetic components, and there are certain overlaps and synergistic effects. At the same time, there are certain differences in the direction of specialization. The company has deep technology and customer accumulation in the fields of information, UPS power supply, consumer electronics, etc., while Haiguang Electronics is relatively leading in the fields of communication power supply, communication network, photovoltaic, charging pile and other fields, and has a complete component product matrix.The company and Haiguang Electronics are complementary in their specializations. The acquisition can further complement the company's layout in the magnetic component product line and expand terminal expansion areas such as 5G.
integrates customer resources to demonstrate synergy. Kerik has a high proportion of export business and rich overseas customer resources, while Haiguang Electronics has rich domestic resource customers under the background of state-owned assets. The acquisition will have a synergistic effect on the integration of customer resources of both parties and accelerate the company's business expansion in domestic and overseas markets. Both the company and Haiguang Electronics have plans in the direction of photovoltaics, charging piles, and new energy vehicles. They are different in product technology and customer portfolio. After integration, they can provide more integrated solutions to more customers, improve overall competitiveness, and demonstrate synergy. .
5. Profit Forecast and Investment Analysis
The overall efficiency has been improved, and new production capacity is progressing smoothly. The company has manufacturing bases in Shenzhen, Guangdong, Huizhou, Guangdong, Yingde, Guangdong, Anyuan, Jiangxi, Xinfeng, Guangxi, Guangde, Anhui, and Pingyang, Vietnam. It has established overseas subsidiaries in Hong Kong and the United States. Its geographical layout covers both domestic and overseas. In terms of production, Both the marketing and server side can provide customers with one-stop fast services, with high efficiency in R&D and customization, design and proofing, material follow-up, product testing, after-sales service, etc., which will help the company's overseas business expansion. . In terms of production bases, the Anyuan factory was put into operation in 21Q4 and the current production capacity is in the climbing stage. The Anhui Guangde factory is expected to be put into operation in 22Q4 and reach full production in 23H2.
is expected to actually control Haiguang Electronics in the future, and industrial integration is expected. In December 2021, the company acquired 54.25% equity of Haiguang Electronics from Tianjin Optoelectronics for a consideration of 186 million yuan; in March 2022, it signed an agreement with Haiguang Electronics shareholder Li Donghai to acquire 10% equity of Haiguang Electronics for a consideration of 22.28 million yuan. The total transaction volume of the two acquisitions is 208 million yuan. It is expected that after the acquisition is completed, the company will hold 64.25% of the equity of Haiguang Electronics and gain actual control. At the same time, Haiguang Electronics, as a long-established and well-known company in the field of magnetic components, covers many leading enterprises at home and abroad in communications, new energy vehicles, photovoltaic energy storage, charging piles, etc. as end customers, and has rich customers with high-quality resources. We can see from historical data that the company's development focus has gradually shifted to the domestic market, with the proportion of export business decreasing from 63.64% to 53.18% from 2017 to 2021. After integrating Haiguang Electronics in the future, we expect that it will be possible to leverage Haiguang Electronics' years of industry accumulation to conduct business cooperation with high-quality customers such as Huawei. At the same time, the introduction of some domestic customer resources will be smoother.
Multiple guarantees for company performance and profitability. We believe that the company is currently supported by multiple positive factors:
1. Stabilizing upstream copper prices: In 2021, the company's gross profit margin level will be greatly affected by the sharp increase in copper prices. In 2021, the company's comprehensive gross profit margin will be 18.95%, a year-on-year decrease of 5.16pct. From the perspective of 2022, the current copper price is gradually stabilizing. At the same time, we believe that it is unlikely that copper prices will continue to rise at the end of the cycle, which will have little impact on the company's future gross profit margin.
2. New energy vehicles have strong momentum: my country’s new energy vehicle sales have a compound annual growth rate of 47.34% from 2016 to 2021. Among them, the national new energy vehicle sales in 2021 were 3.521 million units, a year-on-year increase of 157%, ranking first in the world for 7 consecutive years, and new energy vehicles accounted for 13.4%. At the same time, the development of new energy vehicles has become a unified global trend, and traditional car companies/groups including Volkswagen and Daimler have also launched their own strategic plans for new energy vehicles. As a leading company in magnetic components, and relying on its mass supply chain advantages, the company will deeply benefit from the increase in the value of automotive electronic bicycles brought about by the electrification of vehicles.
3. The growth rate of photovoltaic installed capacity is significant: Since 2018, major economies such as the United States, the European Union, and China have successively introduced carbon reduction policies, and the global photovoltaic industry has benefited from and operated at a high level of prosperity. According to BNEF data, the global annual new photovoltaic installed capacity is expected to be 183GW in 2021, and the newly installed capacity from 2018 to 2021 will grow at a CAGR of +19.22%. The national annual new photovoltaic installed capacity in 2021 is 54.88GW, +13.86% year-on-year, and the 2019-2021 CAGR +35.00% has exceeded the 2017 level. Currently, the company's direct or indirect customers in the photovoltaic field include mainstream photovoltaic and energy storage companies such as Sungrow, Jinlang Technology, GoodWe, Growatt, and Shangneng Electric.We believe that in the future, after the company controls and collaborates with Haiguang Electronics, it will introduce Haiguang Electronics' Huawei resources to a certain extent. By then, the company's direct or indirect customers may cover more than 60% of the world's photovoltaic companies.
Haiguang Electronics plans to acquire and consolidate it in the future. Click's announcement shows that the company plans to continue to acquire 10% of the equity of Haiguang Electronics in 2022, thereby achieving 64.25% of the equity and completing actual control of Haiguang Electronics. After actual control, financial consolidation will be carried out. At present, Haiguang Electronics' revenue scale is growing significantly, with revenue of 1.166 billion yuan in 2021, +18.1% year-on-year. In 2021, due to the impact of rising prices of upstream raw materials, Haiguang Electronics' net profit level is under pressure. The net profit in 2021 is 12.61 million yuan, -18.6% year-on-year, and the net profit margin is -0.49pct year-on-year to 1.08%. We believe that thanks to the continued increase in downstream demand, Haiguang Electronics will continue its current steady growth trend in 2022, and is expected to achieve a revenue growth rate of 20% to 30% in 2022, reaching approximately 1.4 to 1.5 billion in revenue, with a net Due to the current stabilization of upstream copper prices, we expect profits to recover slightly in 2022, reaching approximately RMB 15-20 million. In the case of complete consolidation in 2022, combined with the performance forecast for Click, Click's total revenue in 2022 will reach approximately 3.6 to 3.7 billion, and the net profit attributable to the parent company will reach 215 to 220 million.
(This article is for reference only and does not represent any investment advice on our part. If you need to use relevant information, please refer to the original text of the report.)
Selected report source: [Future Think Tank] Future Think Tank - Official website
