Science Technology

Kelu Electronics: At the beginning of dawn, the old king of energy storage has changed, and the next Deye stock?

The article only records the idea of “The Big Bang of New Energy” and does not constitute investment suggestions. The author has no group, no charge for stock recommendation and no financing for customers. “This is the 485th original article of the new energy explosion”
Kelu Electronics released the third quarter report of 2022 on the evening of October 25. On October 26, the market rewarded it with a limit board, indicating that the market was satisfied with its third quarter report. So what exactly moved the market?
01 Brief Analysis of Kelu Electronic Third Quarterly Report
In the first three quarters, the company achieved a revenue of 2.095 billion yuan, a year-on-year decrease of 5.98%, net profit attributable to the parent company – 103 million yuan, a year-on-year increase of 54.88%, and non-net profit deducted – 185 million yuan, a year-on-year decrease of 2.4%. Q3 achieved revenue of 705 million yuan in a single quarter, down 17.78% year-on-year and 13% month-on-month; The net profit attributable to the parent company was 52.9699 million yuan, up 174.16% year on year; Deduction of non-net profit – 24.6981 million yuan, up 56.39% year on year.
Just looking at the revenue and net profit, we are disappointed. There is still no improvement. The net profit is relatively good, and the year-on-year growth rate at least looks good. In Q3, the net profit has changed from negative to positive.
However, the large increase in net profit was mainly caused by non-current assets disposal and government subsidies, including 64894200 yuan of non-current assets disposal income and 13336500 yuan of government subsidies. The company has started to make deductions in the past two years. In order to protect the shell and focus on its main business, it has continuously stripped off some subsidiaries related to its main business. In the third quarter, it transferred 100% equity of Huailai Zhongshang New Energy Technology Co., Ltd. and 65% equity of Shenzhen Xinlong Electronic Technology Co., Ltd.
It is not worth looking at the revenue and net profit alone. Its main focus is that the energy storage business has made some progress. In the third quarter, the contractual liabilities reached 831 million, mainly due to the increase in advance receipts of overseas contracts for energy storage. At the end of last year, there was only 273 million, a year-on-year increase of 203.82%. At the time of the report, there was only 493 million, that is, the Q3 contract liabilities increased by 338 million, with an average of 110 million a month.
In addition, due to the performance of the energy storage contract, the inventory in process increased. As of September 30, the inventory reached 1.37 billion, an increase of more than 90% compared with 720 million at the end of last year, and an increase of 57% compared with 875 million reported in the report.
It shows that the company has started to make efforts in overseas energy storage business, which is also the main reason why the market gave it a limit on the next day.
In general, Kelu’s three-quarter report is quite good.
02 Core points of Kelu Electronics
As old friends of the New Energy Big Bang know, Leo has also tracked it several times, and told everyone that there is no need to have too high expectations for its performance this year. It can only be treated as a reversal of difficulties. Fortunately, the probability of reversal of difficulties is relatively high.
Its core focus is the explosion of the energy storage industry. As one of the old players in the industry, it can even be said that it was the original energy storage leader. Although it has lagged behind the industry due to its own reasons, the company’s technical foundation is still there, which ensures that there is no technical threshold for the company to enter the energy storage industry, and even how to play is also familiar.
Of course, the biggest attraction is naturally the entry of Midea Group.
On October 18, the company received the Decision of the State Market Supervision and Administration of Midea on the Non-execution of Further Review of Anti-monopoly Review of Business Concentration, which means that Midea’s acquisition of the company’s equity has accelerated. The opportunity for the optical storage industry is obviously very urgent now, which can be seen from its rapid entry into Hekang Xinneng and Kelu Electronics. Obviously, it hopes to complete the merger and acquisition of Kelu Electronics as soon as possible.
Once the matter of joining Kelu Electronics is determined, Midea will certainly give the company support in terms of funds and resources, especially overseas channel resources, as soon as possible.
There is even a very high probability that Midea has begun to do this. After all, Midea’s entry into Kelu Electronics should be a certainty.
The growth of the company’s overseas energy storage business in the third quarter may also be related to Midea’s support.
03 Give Kelu Electronics more patience
Now many retail shareholders of Kelu Electronics have very high expectations for it, and all think it will be the next Deye share! But one thing to say, the next Deye share is loved by everyone, but the next Deye share is not so easy.
For Kelu Electronics, we still need to calm down. There is an expectation of Midea’s participation in the stock market. The probability of the company’s dilemma reversal is very high, but compared with the companies that have the first-mover advantage, its gap is there.
It is very good to have the current trend. To put it bluntly, the market has a very high expectation of it. Behind this is the high recognition of Midea Group’s ability, even the excessive superstition.
However, the operation of an enterprise is never accomplished overnight. It is a matter of taking steps step by step. It is difficult for Kelu Electronics to finally reflect its changes in finance without a year and a half. In this process, it is also difficult to avoid market trends, especially the ups and downs of energy storage boards.
Not to mention that even if Midea becomes the owner, how to position it with Hekang Xinneng will also affect Kelu’s operation and the market’s expectation of it.
Fortunately, in the field of optical storage, Kelu Electronics has more advantages than Hekang Xinneng. Under the situation that Midea is eager to find a way in the field of optical storage, Kelu has more opportunities to get the full support of Midea.
Give it more patience, and it should not disappoint everyone’s expectations.