Huabao New Energy is justifying its Pricing

Without a portable power source, camping is hardly "exquisite".

This kind of "Portable power supply" that is free from the limitation of "wires" and has the functions of light weight, high capacity and high power, can supply power to various electrical appliances such as aerial cameras, mobile phones, and small household appliances outdoors, and is more and more popular in camping hobby. the favor of the person. Therefore, in the post-epidemic era, as picnic camping, fishing, light-following photography, etc. have become the mainstream of leisure, and the The quality of outdoor consumption has been upgraded, the Portable Energy Storage Market has rapidly ushered in prosperity.

The leader in this subdivision is Shenzhen Huabao New Energy Co., Ltd. (hereinafter referred to as "Huabao New Energy Co., Ltd."), which was established in 2011 with the two brands of "Jackery Electric Xiaoer" and "Geneverse " to deploy domestic and foreign markets. can").

On September 19, Huabao New Energy (301327.SZ) was officially listed on the GEM of the Shenzhen Stock Exchange with an issue price of 237.5 yuan per share and a price-earnings ratio of 84.6 times. It is the first Portable Energy Storage brand company to land on the A-share market. This not only means that the "first share of portable energy storage" Huabao New Energy is favored by the market, but also proves that this fast-growing segment has been fully recognized by capital.

Titanium Media APP noticed that Huabao New Energy, as the first portable energy storage company to stand under the A-share spotlight, has developed with its unique M2C business model, which has not only subverted the traditional emergency backup power field, but also led the way in portable energy storage. The prosperity of the energy storage industry is also a typical case of Chinese supply chain companies relying on technological progress to circumvent the barriers of overseas offline channels and achieve overtaking in corners.

Technology is an important driving force for human development, and every change in subdivisions affects the future direction of an industry. A typical example is Apple's role in the mobile Internet. In 2007, Apple released the first-generation iPhone, subverting the physical keyboard; in 2013, the iPhone 4 was launched, officially opening the era of mobile Internet. Another example is the automotive industry. Tesla entered the market and directly revolutionized the life of traditional cars.

In the process of innovation and change, it is equally critical to step on the air and lead technology. At a time when the supply chain and technology are in China and the demand is in the world, the portable energy storage track is undergoing such a change.

In the past, the power supply for outdoor and emergency situations was mainly provided by small fuel-fired generators, but fuel-fired generators were noisy, complicated to operate and polluted the environment. In recent years, based on the development of clean energy technologies such as lithium batteries and the vigorous outdoor sports, portable energy storage products have emerged as the times require.

(Portable energy storage products of Huabao New Energy)

In fact, as early as 2015, Anker released portable energy storage power products. However, Anker did not increase market investment due to the fact that battery technology and scene demands were not fully stimulated. But in the same year, Huabao Energy was resolutely optimistic about this field, and turned its focus to lithium battery portable energy storage products.

In the following years, with the improvement of supply-side factors such as lithium battery technology advancement and cost reduction, the demand for convenient off-grid electricity consumption in outdoor or home scenarios has been stimulated. In addition, the "new crown" epidemic has accelerated the development and improvement of online consumption habits. With the focus on outdoor camping and household disaster preparedness, the portable energy storage market has grown rapidly.

According to the report data of China Chemical and Physical Power Industry Association, the global shipments of portable energy storage products will reach 2.088 million units in 2020, with a CAGR of 152% from 2016 to 2020; . The global market size has rapidly increased from 60 million yuan in 2016 to 4.26 billion yuan in 2020, with an average annual compound growth rate of 190.28%; in 2021, the market size will reach 11.13 billion yuan, a year-on-year increase of 161.3%.

(Market size and growth rate of portable energy storage products, unit: 100 million yuan, %, data source: China Chemical and Physical Power Industry Association)

With a keen sense of smell, Huabao Xinneng gradually increased its portable energy storage and rose rapidly. From 2019 to 2021, the company achieved revenue of 319 million yuan, 1.070 billion yuan, and 2.315 billion yuan respectively; net profit attributable to the parent was 36.4516 million yuan, 233.8119 million yuan, and 279.3072 million yuan.

(The change trend of Huabao New Energy's performance, source: wind)

Stepping on the industry trend and choosing the right strategy for deep cultivation, in just a few years, Huabao New Energy has grown into an industry leader. According to the statistics of the China Chemical and Physical Power Industry Association, the global sales of portable energy storage exceeded 2 million units in 2020, and Huabao New Energy ranked first in the world in terms of product shipments and sales scale, among which the market share of shipments About 16.6%, and the market share of sales scale is about 21.0%.

In the explosive portable energy storage market, domestic brands have jumped to the top. Why do more people choose Huabao Xinneng's products? To solve this proposition, it is necessary to return to the portable energy storage product itself.

Portable energy storage is a flexible and convenient small energy storage system, also known as "outdoor power supply". The built-in lithium battery is used to provide stable AC and DC output. The battery capacity is generally 100-3000Wh. It is equipped with AC, DC, Type-C, USB, PD and other interfaces. In addition, it can be used with Solar Panels to form a small power generation system.

(Application of Huabao New Energy Products)

Portable energy storage products can meet high-power short-term electricity demand and are easy to carry. The main application scenarios are outdoor activities and emergency disaster preparedness. With the popularity of "exquisite camping", electronic equipment has increased, and the number of outdoor travel days has increased. Under the demand for multi-frequency charging, convenience, low cost, fast charging, and safe electricity consumption have become the basic demands. With the continuous development of lithium battery technology, portable energy storage products are developing in the direction of higher density, light weight and large capacity.

Some industry insiders also pointed out, "From the perspective of the underlying logic, the iteration of energy storage products is how to make products safer, more efficient, and have a longer life cycle through the accumulation of technology and the superposition of various experience improvements. It includes battery management, The quality of the cell, shell material, appearance design, product structure and many other factors."

It can be seen that the core competitiveness of the portable energy storage industry is never a price competition blindly pursuing market share, but a showdown of customer demand and hard technology strength. The driving force for Huabao Xinneng to lead the industry has fallen on research and development from the very beginning.

From 2019 to 2021, the company's research and development expenses will be 9.0404 million yuan, 23.4334 million yuan and 64.512 million yuan, with an average annual compound growth rate of more than 167%. As of the end of 2021, the company has 197 R&D technicians, and the core technicians have an average of more than 20 years of experience in the lithium battery field, maintaining sufficient sensitivity to the industry's cutting-edge technologies, ensuring the leading position in technological achievements.

Up to now, Huabao New Energy has mastered a number of core technologies in software and hardware electronic design, safety management design, and structural design in the field of portable energy storage products, and has a total of 254 domestic and foreign patents. The company is also deeply involved in the drafting of the domestic portable energy storage industry standards, and has been recognized as "Guangdong Province Distributed Solar Energy Intelligent Small Energy Storage Engineering Technology Research Center" by the Guangdong Provincial Department of Science and Technology. The "Development and Industrialization of Power Supply Key Technologies" project won the "Second Prize for Scientific and Technological Progress of Guangdong Province in 2020".

After looking forward to the needs of users, Huabao New Energy has transformed its main core technologies into industries, and formed core technology products with market competitiveness. Take the recently released Jackery solar generator 1000 Pro as an example. This product supports 800W solar energy and can be fully charged in 1.8 hours at the fastest, and adopts more advanced double-sided solar power generation technology. Compared with single-sided power generation, the solar power generation efficiency can be improved by up to 25%; Both the energy storage and solar panels are designed with folding handles, which are easy to carry and store, and the construction of the photovoltaic power generation system can be completed in 1 minute; industrial-grade design standards are adopted, and industrial-grade photovoltaic materials are selected. After 15 rigorous tests, it was awarded the world's first TÜV SÜD Portable photovoltaic certification; using vehicle-grade safety cells, forced convection heat dissipation design, using the highest 94V-0 fireproof material required by UL in the United States, safe and worry-free use.

After the scientific research is transformed into products, Huabao New Energy has completed the brand mental occupation of the target group with its unique M2C (Manufacturers to Consumer) model, and has become synonymous with portable energy storage that sells well in many countries around the world.

It is worth mentioning that the M2C model, that is, the manufacturer provides products directly to consumers, and integrates R&D, production, branding, and sales into a whole value chain business model. Through the M2C model, Huabao Xinneng can conduct in-depth research on market demand and consumer preferences, realize rapid iteration and optimization of products, continue to innovate product appearance, structure, performance, etc., and lay out product matrix to achieve precise innovation and value creation.

Huabao Xinneng, which has stepped on the industry trend, has also accurately grasped the dividends realized through online channels. According to Statista, global retail e-commerce sales increased from US$1.3 trillion in 2014 to US$3.5 trillion in 2019, maintaining an average annual growth rate of more than 20%. Since the outbreak of the "new crown" in 2020, the global online consumption habits have accelerated. According to data from eMarketer, the proportion of global retail e-commerce sales to overall retail sales has rapidly increased from 13.6% in 2019 to 18% in 2020 , global retail e-commerce sales are expected to reach $6.39 trillion in 2024. The rise of global e-commerce platforms and changes in consumers' purchasing habits have provided channels and opportunities for domestic small and medium-sized manufacturing enterprises to develop international high-end brands.

Born in the era of e-commerce, Huabao New Energy adopts a combination of "online + offline" when deploying domestic and overseas markets. Online, it mainly sells through mainstream channels such as Amazon, Rakuten, Yahoo, Tmall, and JD.com. The e-commerce platform sells products. From 2019 to 2021, the proportion of the company's main business online sales revenue will increase year by year. In addition, the company also actively deploys multiple sales channels for its own brands, and has established cooperative relationships with world-renowned brands or retailers such as JVC, Canon, Harbor Freight Tools, Home Depot, Lowe's, and Sam's Club.

It can be said that looking back on the development history of Huabao New Energy`s own brand reflects the growth path of the portable energy storage industry to a certain extent, and even represents that Chinese supply chain enterprises can bypass the barriers of overseas offline channels and achieve detours with the help of technological progress. The history of overtaking.

The issue price is 237.5 yuan per share, the price-earnings ratio is 84.6 times, and the initial valuation is 22.8 billion yuan. The market pricing gives Huabao Xinneng enough face.

However, the stock market has continued to decline recently, and the market's fear of heights has spread. The company's stock price fluctuated on the first day of listing, but it rebounded strongly the next day, and once regained lost ground during the session; the tenacity of Huabao Xinneng's stock price once again proved that the capital market has Highly recognized by Huabao New Energy and the portable energy storage track it represents.

For investors, the nearly 100 billion track starts with a single step, and expectations for the leader should not be limited to the present. It is more necessary to use long-term logic to evaluate the investment value of this "first share of A-share portable energy storage".

According to the report data of China Chemical and Physical Power Industry Association, it is estimated that the market size of the global portable energy storage industry will reach 88.23 billion yuan by 2026, with an average annual compound growth rate of 65.72%.

Taking the outdoor activity scene as an example, European and American countries have a long history of outdoor activities, and the number of participants and participation rates have continued to increase after the new crown epidemic. With the increase in the penetration rate of portable energy storage products, Huabao New Energy's sales in the United States in the past three years have reached 69,200 units, 130,000 units and 332,900 units respectively, with rapid growth.

In China, with the continuous development of the social economy and the impact of the "new crown" epidemic, domestic outdoor activities continue to popularize, which also promotes the demand for portable energy storage products in domestic outdoor scenarios. According to the data of the enterprise survey, from 2017 to 2021 and from January to July 2022, 2194, 2720, 3728, 9690, 21,900 and 17,800 camping-related enterprises were newly added in my country, which have exploded since 2020. growth.

Tianfeng Securities estimates that the US market penetration rate will be about 25% in 2025, corresponding to 9.29 million units of sales; driven by domestic camping culture, it is estimated that the domestic market sales will reach 3.024 million units in 2025.

In addition, the frequent occurrence of disasters leads to unstable power supply, which also drives the demand for portable energy storage in household emergency disaster preparedness scenarios. Tianfeng Securities estimates that the Japanese market will sell 3.545 million units in 2025, and the CAGR will reach 24.1% from 2022 to 2025.

It is worth noting that China is the main producer of portable energy storage in the world, accounting for 90% of global production and shipments. The industry believes that domestic manufacturers rely on the mature domestic lithium battery and photovoltaic industry chain, can obtain high-quality raw material supply in a timely and stable and more favorable price, and produce products with sufficient core competitiveness on a global scale, and can fully enjoy related products. Industrial development dividends brought about by the rapid growth of market demand.

As a leader in the industry, Huabao New Energy will be the first to benefit. Tianfeng Securities believes, "In the future market competition, Huabao New Energy's brand and channel advantages have widened the gap with existing players, and the more intensive product matrix, local industry chain + cost advantages brought by independent production. , will be expected to become the company's competitive advantage in the medium term, opening up the time gap for competitors to catch up."

It is worth mentioning that under the background of "double carbon", low-carbon and environmental protection is a global trend, and the new energy track is even more at the forefront. Huabao New Energy, which is committed to focusing on consumer-grade energy storage, is backed by the prosperity competition. In line with the global trend, the future development may only be better