Desai battery announced to enter the battery manufacturing! Three daily limit in five days!

Published: Dec 23, 2021 10:37 (GMT+8)
Desai battery announced to enter the battery manufacturing! Three daily limit in five days! The giant battery companies in the consumer battery era have finally sent a signal to expand their business to cell manufacturing. On December 17th, 000049.SZ announced that its board of directors passed a "bill on the proposed joint venture to set up a holding subsidiary to carry out energy storage battery business", which means that Desai battery is about to make batteries.

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The giant battery companies in the consumer battery era have finally sent a signal to expand their business to cell manufacturing.

On December 17th, 000049.SZ announced that its board of directors passed a "bill on the proposed joint venture to set up a holding subsidiary to carry out energy storage battery business", which means that Desai battery is about to make batteries.

According to the announcement, the company intends to set up a joint venture with strategic investors and other related parties to set up a holding subsidiary to carry out energy storage battery business, with a registered capital of RMB500m, of which the company contributes RMB 350 million in cash, with a shareholding ratio of 70 per cent.

The proposed new company is mainly engaged in the R & D, production and sales of lithium-ion batteries, sodium-ion batteries, solid-state batteries and other new energy storage batteries, battery materials and new materials.

In addition to Desai battery holding 70%, the new company's management platform will hold no more than 3%, while strategic investors will hold no more than 27%. As for which companies or institutions strategic investors include, it has not been announced yet.

Desai Battery said that the joint venture to set up a holding subsidiary will further improve the company's industrial layout and play a positive role in the future development of the company's energy storage battery business.

On the secondary market, in the last five trading days, December 16, 17, 22, Desai batteries have risen by the limit!

If calculated from the low of 31.03 yuan on September 29, as of today (December 22), the closing price of 59.64 yuan, less than 3 months, Desai battery up as high as 92.20%!

From manufacturing cell to manufacturing cell

Desai Battery was founded on September 4, 1985, and entered the A-share market as early as March 1995. It was once listed as Shen Wanshan A, ST Shen Wanshan, St Wanshan, Shen Wanshan, Desai Battery, G Desai and so on.

Desai battery mainly focuses on the business layout of lithium battery industry chain, including Huizhou battery mainly engaged in small and medium-sized lithium battery packaging and integration business, Huizhou blue micro mainly engaged in small and medium-sized lithium battery power management system business, Huizhou Xinyuan mainly engaged in large-scale power battery, energy storage battery and other power management system business.

At present, Desai battery is in the leading position in the small and medium-sized power management system and package integrated market segment.

It is worth noting that in recent questions from more investors, Desai batteries have indicated that they are not involved in the area of battery business for the time being:

On December 13th, some investors asked: "compared with lithium hexafluorophosphate (LiPF6), difluorosulfonimide lithium (LiFSI) has many advantages, such as high conductivity, high thermal stability, hydrolysis resistance, high temperature resistance, inhibition of battery inflation and so on, which plays a very important role in improving the performance of lithium battery. Does the company have lithium batteries with LiFSI as electrolyte to be put into production in order to enhance the competitiveness of the company? "

Desai battery replied: "Hello, the company is not involved in the field of battery business." Thank you! "

On November 30, an investor asked: "Hello, your company is not going to do battery business?" Or buy a battery company? "

Desai battery replied: "Hello, the company is not involved in the field of battery business." In the future, the company will actively look for various opportunities to continue to optimize the industrial layout. Thank you! "

On November 11, some investors asked: "what are the company's plans for upstream cell expansion?"

Desai battery replied: "Hello, the company is not involved in the field of battery business." In the future, the company will actively look for various opportunities to continue to optimize the industrial layout. Thank you! "

Now (December 17), Desai Battery finally "can't help" to announce the establishment of a joint venture to manufacture batteries, which will include lithium-ion batteries, sodium-ion batteries, solid-state batteries and other new energy storage batteries.

The "leader" in the field of consumer batteries

Desai Battery is a subsidiary of Shenzhen said Group, formerly known as Desai Energy Technology Co., Ltd., which was founded in 1999. As early as 2001, the company became a supplier of domestic mobile phones such as Konka, TCL, Kejian and so on.

In 2004, Desai Group and Shenzhen Wanshan Industrial Co., Ltd. carried out asset exchange, and Shenzhen Wanshan's main business was changed to battery production, development and sales. "Shen Wanshan A" changed its name to "Desai Battery" in 2005.

In 2012, Desai battery acquired 25% of the three subsidiaries of Huizhou Desai, Huizhou Lanwei and Huizhou Juneng by issuing shares from Shangyang in Huizhou to acquire 100% of Hong Kong Dingxiang, thus taking full control of the three companies. since then, Desai battery's performance has basically maintained an upward trend.

For example, the batteries used in Apple's iPhone4, which was launched in 2012, are all supplied by Desai batteries.

From 2012 to 2020, the net profits of Desai batteries were 144 million yuan, 206 million yuan, 235 million yuan, 230 million yuan, 255 million yuan, 300 million yuan, 401 million yuan, 502 million yuan and 670 million yuan respectively.

In the first three quarters of 2021, Desai's net profit was 492 million yuan, up 33.41% from a year earlier.

At present, Desai battery products are mainly small lithium battery packs and power management systems, customers cover Apple, Huawei, Samsung, oppo and other well-known manufacturers, the products are mainly used in smartphones, tablets and so on.

However, it may also be that business development is too slow, Desai battery in the power business and energy storage business, basically no "achievements". Now, even in the field of consumer batteries, the strong are "around".

The market position of consumer battery leader ATL is needless to say. Comparable company 300207.SZ, due to its diversified approach, now has a market capitalization of 76.32 billion yuan, which is much higher than the 17.91 billion yuan of Desai batteries (market capitalization is calculated on December 22nd).

Zhuhai Guanyu (688772.SH), which went public on October 15, now has a market capitalization of 54.35 billion yuan, more than three times that of Desai batteries.

Once intended to join hands with ATL

On December 22, 2020, Desai Battery announced that it was planning a major asset restructuring of Huizhou Battery, a wholly-owned subsidiary, to introduce strategic investors by way of capital increase.

Desai Battery and Hong Kong Sununda, a subsidiary of ATL, signed a "letter of intent" to increase the capital of Huizhou Battery at the price of its entire stake in Dongguan Xineng Tech. After the capital increase is completed, Hong Kong Suneng Battery will hold no more than 49 per cent of Huizhou Battery, Desai Battery will hold the remaining stake in Huizhou Battery, and Huizhou Battery will hold all the shares in Dongguan Xinnengde.

At the end of July this year, the cooperation was aborted: Desai Battery announced that the company had decided to end the major asset restructuring of Huizhou Battery, a wholly-owned subsidiary, which introduced strategic investors through capital increase. The announcement revealed that the reason for terminating the planning of the major issue was the failure to agree on the core terms.

While the partnership with ATL failed, Desai Battery continued to dig deep into the consumer battery business:

On January 11, 2021, Desai battery increased the investment scale of the high-end intelligent construction project of Internet of things power supply, and the total investment of the project increased from 2.6 billion yuan to 3 billion yuan. The project is divided into three phases, with a total investment of 1.8 billion yuan in the first phase, 792 million yuan in the second phase and 408 million yuan in the third phase. Among them, the construction of the first phase of the project began in January 2020, and the main factory building has been successfully capped and is expected to be gradually put into use in the fourth quarter of 2021.

On February 22, 2021, Desai's board of directors approved Huizhou Battery to increase its wholly-owned subsidiary Hong Kong Battery by US $12 million, and the registered capital of Hong Kong Battery increased from US $3 million to US $15 million. To build and operate a new manufacturing base in Vietnam.

At present, Desai batteries are beginning to touch more business:

In October, Desai Battery said on the interactive platform, "the company produces energy storage lithium battery products for Huawei." The company's energy storage battery products are mainly used in 5G communication base stations, home energy storage, UPS data center power supply and so on. The energy storage lithium battery market is the key business area of the company in the future. "

In addition, Huizhou Xinyuan, a secondary subsidiary of Desai Battery, is mainly engaged in the power management system business of power batteries for new energy vehicles.

Summary

As a listed company of Desai Group, one of China's top 500 enterprises, Desai battery has its unique channel advantages, whether in the field of energy storage or power.

In the field of energy storage and power battery in the new energy tuyere, Desai battery "arrived late". The recent good performance in the secondary market may be that the undervalued Desai battery has regained the recognition of investors.

We will wait and see how the Desai battery performs in the future.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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