The world's second largest power tool lithium battery, net profit increased by 1508.53%

In 2021, liquidity will decline, and corporate profits will rise. The two are competing in the Shanghai and Shenzhen stock markets to fluctuate, and the structural market has become a consensus in the market. If you want to achieve excess returns, you must either look for growth stocks with earnings growth several times faster than liquidity tightening, or in-depth research to tap industry leaders, and the growth rate of the industry segments exceeds expectations.

On the other hand, the recent research path of securities firms, fund companies, QFIIs, and Sunshine Private Equity shows that while institutional investors are closely tracking Baotuan’s assets, they have also stepped up their research on leading industry segments, and related individual stocks have increased in the secondary market. The amount of funds involved is also quite obvious. For example, the power tool lithium battery supplier we will analyze today has a net profit of 159,634,600 yuan in the first quarter of 2021, a year-on-year growth rate of 1508.53%; the four-year revenue of the lithium battery business has increased from 677 million to 1.447 billion, and its production capacity And the performance has entered an accelerated release period; but the stock price is only 12.35 yuan, and the latest price-earnings ratio is 20 times. Let's take a look at the company's specific situation.

Daily candlestick chart
1. K-line analysis

As shown in the above figure, the company’s stock price was raised between 6 and 7 yuan, and then quickly pulled up to 9 yuan to start a long horizontal shock wash. At the same time, the main funds continued to sell high and buy low during the period of pull up and horizontal wash, gradually Increase the overall cost of holding positions, and complete the action of collecting and laundering funds. Especially during the period from February 24 to March 11, the stock price fell rapidly, but the volume was able to shrink sharply by half of the previous average volume. The obvious bluffing action was the completion of the cleaning of floating chips.

On the moving averages, the 5, 10 and 20-day moving averages are glued together, showing a state of long positions at the beginning, and the three moving averages are obviously upturned and divergent. The 60-day moving averages are flat. MACD once again crosses the 0 axis, and the red column appears.

In the last three days, the power tool lithium battery has shrunk at a high level after the shock, and the bulls firmly control the situation. In the last three days, the K-line has formed a combination of two males and one female bulls.

At the same time, the stock price has fluctuated sideways for nearly half a year (from November last year to the present). From the time dimension, it is clear that the floating chip process may have been completed.

Weekly candlestick chart
Weekly K line, the mid-term trend is perfect. In November last year, it accelerated and broke back and was supported by the gap. At the same time, the power tool lithium battery weekly K line formed an arc bottom shape. The volume and price combination can be called a classic textbook. In the past week, the volume has been increased. Attack the bottom neckline of the arc, or break upward with a high probability.

2. Analysis of main business

There are currently three main businesses: (1) Metal materials and logistics, with revenue of 1.928 billion, accounting for 45.36% of revenue; (2) Power tool lithium battery business, with revenue of 1.447 billion, accounting for 34.04% of revenue; ( 3) LED epitaxial wafers are chips, with revenue of 859.4 million, accounting for 20.22% of revenue; and other businesses accounting for 0.38%. It can be seen that the company's three businesses go hand in hand, with special LED epitaxial wafers and chips turning losses into profits.

Further subdivision and comparison found that the company's power supply started in May 2016. From 2017 to 2020, the revenue of the power tool lithium battery business has gradually increased, reaching 699 million, 991 million, 964 million, and 1.447 billion respectively. In other words, it has increased by 2.13 times in 4 years.

The current annual production capacity is about 400 million pieces, and the production line is in full production. The second phase of the Zhangjiagang plant will be gradually completed in the second half of the year, and the main contribution will be next year. After the expansion of the second phase of Zhangjiagang is completed, the total will reach about 700 million. The target of 600 million units for the first phase of the Huai'an plant is to gradually start production by the end of next year.

Main business
3. The latest annual report and quarterly report

The company's 2020 annual report shows: in 2020, it achieved revenue of 4.25 billion yuan, a year-on-year increase of 20.76%; realized net profit of 278 million yuan, a year-on-year increase of 136.33%; realized net profit of 185 million yuan, a year-on-year increase of 683.4%.

The first quarter report of 2021 shows: In the first quarter of 2021, revenue of 1.463 billion yuan will be achieved. The power tool lithium battery will increase by 115% year-on-year. The net profit attributable to the parent will be 160 million yuan, a year-on-year increase of 1509%, a month-on-month increase of 56%, and a non-net profit of 1.51. 100 million yuan, an increase of 68% month-on-month