Zhongheng Electric (002364) Comments: Three Strong Jointly Seize New Heights of Charging Piles

Zhongheng Electric (002364) Comments: Three Strong Jointly Seize New Heights of Charging Piles

Event: The company and Xiaoju New Energy invested in an investment and extension cooperation agreement on charging piles.

The company issued an announcement: The company and Beijing Xiaoju New Energy Automobile Technology Co., Ltd. and Zhejiang Jiaotou New Energy Investment Co., Ltd. have completed the “Cooperation Framework Agreement” on the investment and operation of charging piles.The cooperation site conducts all-round cooperation in the construction and operation of charging station facilities, parking, and the automotive aftermarket. The cooperation period is from August 22, 2019 to August 21, 2022. The cooperation content includes but does not install charging facilities and cooperative operations. The date is small.Orange Car Service provides aftermarket services for cars, value-added services for dating and charging.

The combination of strong and strong, complementary advantages, shaping the “car + pile + aftermarket” business model of the entire industry chain.

Xiaoju New Energy “Xiaoju Charging” is a new energy charging brand related to “Didi Chuxing”. Based on the advantages of Didi ‘s massive users and intelligent algorithm platform, it can conduct screening analysis on the quality, operating status and location of charging piles.Enabling partners for data and traffic; Transaction Investment is the only new energy company affiliated to Zhejiang Transportation Investment Group, which can take advantage of the resources of large provincial state-owned enterprises; the company is a domestic leader in new energy charging equipment, and is the exclusive charging equipment for Didi nationwideSuppliers, deeply cultivating the field of high-frequency switching power supplies. For many years, they have mastered comprehensive solutions such as high-power charging module (AC / DC) technology and intelligent management platforms.

The cooperation between the three will give full play to the advantages of flow, resources and core technologies, and create a full-industry chain business model that integrates new energy vehicles, charging piles and aftermarkets.

Borrowing the resources of the trading group into the broad charging pile manufacturing and operation market, the business is expected to usher in a significant increase.

According to data from the Ministry of Public Security, as of June 2019, there were 3.44 million new energy vehicles in China, and the number of public charging piles was only 41.

20,000, a gap of 1: 1 from the planned length of 1: 1 in the 2015 Guiding Opinions on Accelerating the Construction of Charging Infrastructure for Electric Vehicles, and there is ample demand for charging piles.

The “Thirteenth Five-Year Plan for the Development of New Energy Vehicle Industry in Zhejiang Province” proposes to build the nation’s leading new energy vehicle industry system by 2020. As of June 2019, the number of public charging piles in Zhejiang Province is only 2.

30,000, with ample room for increase.

Through this cooperation, the company will rapidly develop into the operation of the charging piles of the Provincial Trading Group’s resources and cut into Zhejiang Province, especially the highways and other transportation hubs. The automotive after-sales service market and regional energy Internet application fields will bring the company’s charging pile-related businesses.Significant growth drivers.

High-voltage DC leader, 5G + IDC requires two-wheel drive.

As 5G enters the commercial era, the density and incentives of 5G base stations have surged, and the scale of the corresponding power supply market has increased significantly. It is expected that the space for power requirements of 5G base stations corresponding to communications equipment is expected to exceed 50 billion; the current global big data, cloud computing and other distributed computing scenariosThe growth has led to the demand for power in the vast data center, and the corresponding mainstream power supply technology HVDC will usher in an accelerated phase of demand.

The company has been deeply involved in the field of communication power for many years. As a leader in high-voltage DC power technology, it will fully benefit from the broad demand for 5G and IDC power equipment.

Energy Internet platforms are emerging, and are important players in ubiquitous construction.

In 2012, the company cut into the field of electric power informatization through the acquisition of Zhongheng Borui. In 2016, it raised 1 billion US dollars to build an energy internet cloud platform, and gradually built an industrial body focusing on the energy internet.

Current flooding In the context of the construction of the “Internet of Things” and “Digital South Grid”, investment in power grid information is expected to grow explosively. The company will use the energy Internet platform to fully support the flooding 南京桑拿论坛 in construction and fully benefit from the growth of industry demand.

Investment suggestion: The company has been deeply cultivating communication power and electric power informationization for many years. The HVDC field has obvious advantages. At present, it benefits from 5G construction, IDC power supply demand accelerates, “ubiquitous” and energy Internet construction. This cooperation agreement is expected to charge the companySignificant increase in business.

We expect the company’s net profit attributable to mothers to reach 1 in 2019-2021.

62/2.

34/2.

91 trillion, EPS is 0.

29/0.

41/0.

52 yuan, corresponding to the closing price of PE on August 23, 2019 were 40.

0/27.

8/22.

3 times, maintaining the overweight rating.

Risk warning: New energy vehicle production and sales are less than expected, 5G investment is less than expected, and macroeconomic growth is less than expected