A share GEM into the era of Ningde?

On March 12, 2018, the Ningde era updated the prospectus for the first public issuance of stocks. The company intends to issue 217 million shares, accounting for 10 billion of the total share capital, and the amount of capital raised is 13.12 billion yuan.

Based on this calculation, the valuation of the Ningde era IPO exceeded 130 billion yuan. The usual listing day rose by 44 % and the market value exceeded 180 billion. Enjoy a few more board, market value will exceed 300 billion, become the most GEM.

What is striking is that at the time of the upcoming IPO in the era of Ningde, the parent company of Wotema(300116. SZ), who was ranked fourth in global power battery sales, was frozen due to debt default and 21 bank accounts were frozen. Chairman Guohongbao also faces the risk of losing his actual controlling position because of the possible default of the pledged stock.

In the era of Ningde, why quickly become the king of the GEM? Are you at the same risk as Wotema?

"Seal the King" with New Energy Concept and Hard State Performance

In 2017, the global sales of new energy vehicles reached 2.21,000 vehicles, and China accounted for 48,000 vehicles. It is estimated that in 2022, the total global sales of new energy vehicles will reach 6 million vehicles. If China accounts for half of the total, China's new energy vehicles will sell 3 million vehicles. The average annual compound growth rate in the next five years is 31 <UNK>.

In 2017, global automobile power lithium battery production was 69 GWh, China 44.5 GWh, accounting for 64.5 %. It is expected that in 2022, the demand for power lithium batteries will exceed 325 GWh. If China accounts for 60 %, power battery sales will reach 195 GWh. The average compound growth rate in the next five years is 34.4.

It is expected that the "big limit" of fuel cars will be around 2050. It may sound distant, but it is only a snap to the vicissitudes of life.

In 2017, China sold more than 29 million cars. Consider 30 million electric cars a year in 30 years, compared with 780,000 in 2017, with high ceilings.

The Ningde era became the highest market value of GEM stocks, first of all because of the broad prospects for new energy vehicles.

In general, potential stocks and merit stocks can not be both: companies that make a lot of money seem to have little room for growth, and companies that have a promising future have few profits at the moment. What is valuable in the era of Ningde is that it is not only a concept, but also a true gold and silver revenue of 20 billion sales. The gross profit margin and net profit margin have reached 36 and 21 respectively.

1) Magic "cold start"

Cengyuqun was born in 1968, Ph.D., Institute of Physics, Chinese Academy of Sciences. In 1999, Liangshaokang, Chentanghua and others established a new energy technology company.

In December 2011, Cengyuqun established the second venture with Huangshilin and others to establish Ningde Times New Energy Technology Co., Ltd. with a registered capital of 1 million yuan and a capital increase of 200 million yuan in October of the following year.

Since 2013, the Ningde era, which was established less than two years ago, has participated in seven state-level scientific research projects from the Development and Reform Commission, the Ministry of Science and Technology, the Ministry of Industry and Information Technology, and the Ministry of Finance. Including the development of lithium-ion power battery technology, the construction of a digital workshop for lithium-ion power batteries, the demonstration of 180 million Wh of lithium-ion power production equipment, and the development of a new generation of lithium-ion power battery industrialization technology.

Over numerous scientific research institutes and state-owned enterprises, emerging private enterprises have received a number of national scientific research projects in a short period of time. The government's public relations capabilities in the era of Ningde are impressive.

With the ability to win national projects "in line with each other", Ningde era has won the power battery orders of Yutong Group, SAIC Group, Beiqi Group, Geely Group, Fuqi Group, CIC Group, Dongfeng Group, and Chang 'an Group.

Tesla is known to use Panasonic batteries and BYD's own development of power batteries. According to reason, the Ningde era technology is also subject to a considerable number of user verification, which takes time. But SAIC, BAIC, Dongfeng and changan resolutely chose a start-up company to supply the core components of electric cars.

In addition to public relations capabilities, the Ningde era was able to "start cold" because many auto manufacturers rushed to launch electric vehicles. However, Japanese batteries were too expensive, domestic products were relatively cheap but production capacity was insufficient, and BYD only provided its own electric vehicles. As a result, Ningde seized the opportunity of the times.

2) Technical but not magical

The main product of Ningde era is the power battery, and the process is not complicated: the slurry is coated on the surface of aluminum foil and copper foil as positive and negative poles; The electrode is separated by a diaphragm and wound into a core; After testing, welding, coated polyester film, into the metal shell to make the core; The core is then formed into a module and a module is made into a battery pack.

All the materials used to make power cells are outsourced. In 2017, Ningde era purchased 3.37 billion yuan from five major suppliers.

Among the five major suppliers, Shenzhen Kedali provided aluminum battery casings, Gegelinmei provided raw materials such as cobalt tetroxide, Zhenhua Xincai provided positive materials, GlencoreInternational AG provided another positive material(crude cobalt hydroxide), and Wuxi provided a lead. Circle winding machine and splitter machine.

In addition, Ningbo fir provides graphite(negative material), Zhangjiagang Guotai Huarong provides electrolytes, and Qinghai Taifeng first provides lithium iron phosphate.

ZTE was "grain cut" to make the Chinese people aware of the short plate made in China. The chip process has entered the nanometer level and is close to the molecular size. The power cell manufacturing process is generally considered to be a millimeter level. The most sophisticated link is coating, with an accuracy of micron level, which is crucial for battery performance and safety. In the era of Ningde, there were 25 "coating machines"(average price of 17.44 million yuan / Taiwan). In addition, there are 10 patents for utility models(such as "coating mechanism", "coating oven" and "coating device").

In short, the power cell production in the Ningde era has a certain technical content but it has not reached the point where it is brilliant.

The page contains the contents of the machine translation.