WOLONG ELECTRIC(600580) 国信证券·2024-10-22 10:03Investment Rating - The report assigns an "Outperform" rating to the company, with a target price range of 15.3-16.1 RMB, representing a 17%-23% premium over the current price [1][3] Core Views - The company is a global leader in the motor industry with a diversified product portfolio, including industrial motors, household motors, and new energy vehicle motors [1][10] - The company has a strong market position, ranking first in China's motor market with a 6.2% market share in 2023 [1][10] - The company is actively expanding into new energy sectors, including distributed photovoltaics and energy storage, with energy storage revenue reaching 485 million RMB in 2023 [1][10] Business Segments Industrial Motors - The industrial motor segment achieved revenue of 9.645 billion RMB in 2023, a 10% YoY increase, with sales volume reaching 34.02 million kW [25] - The segment's gross margin improved to 29.58% in 2023, up 1.17 percentage points YoY, with unit gross profit increasing to 84 RMB/kW [25] - The company benefits from global economic recovery, industrial development, and new customer acquisitions in the Americas [25] Household Motors - The household motor segment generated 3.111 billion RMB in revenue in 2023, a 4% YoY decline, with sales volume of 56.83 million units [25] - The segment's gross margin improved slightly to 16.59% in 2023, with unit gross profit remaining stable at 9 RMB/unit [25] - The company is expected to benefit from overseas home appliance restocking demand and domestic replacement policies [25] New Energy Vehicle Motors - The new energy vehicle motor segment achieved revenue of 972 million RMB in 2023, with sales volume of 10.54 million kW [26] - The segment's gross margin was 16.22% in 2023, with unit gross profit of 15 RMB/kW [26] - The company has secured new customer orders in the new energy vehicle market and is actively developing electric aviation motors [26] Energy Storage and Photovoltaics - The company's energy storage business achieved revenue of 485 million RMB in 2023, with a gross margin of 17.44% [28] - The photovoltaic business generated 306 million RMB in revenue in 2023, with a gross margin of 45.15% [28] - The company has 62 operational distributed photovoltaic projects with a cumulative installed capacity of over 310MW as of H1 2023 [1] Industry Outlook - The global industrial motor market is expected to grow from 212.9 billion USD in 2024 to 281.7 billion USD by 2029, with a CAGR of 4.8% [43] - China's industrial motor market size was over 58.3 billion RMB in 2023, with high-voltage motors accounting for 14.2 billion RMB and low-voltage motors for 44.1 billion RMB [44] - Government policies promoting energy efficiency and equipment upgrades are expected to drive steady growth in the industrial motor market [44] Competitive Landscape - The global industrial motor market is led by companies such as ABB, Siemens, Nidec, and the report's subject company [48] - In China, the top 5 companies account for 70.8% of the high-voltage motor market and 25.0% of the low-voltage motor market, with the report's subject company ranking first in both segments [48]