Li Li materials business resumed, Xu Li growth in the third quarter. The company disclosed that 21H1's revenue was 1.07 billion yuan, year-on-year + 45.08%, mother net profit 160 million yuan, year-on-year + 10.48%, non-net profit 140 million yuan, year-on-year + 10.55%, gross profit 30.20%, year-on-year-6.45pct. Among them, Q2 revenue 540 million yuan, month-on-month ratio + 1.89%, return to the mother net profit 59 million, month-on-month ratio-41.58%, deduction non-net profit 58 million yuan, month-on-month ratio-30.59%, gross profit 28.94%, month-on-month decrease 2.55pct.
The increase in revenue scale is due to the release of the production capacity of cathode materials and the growth of intelligent electronic control. During the reporting period, the sublimation company resumed production, and the gross profit margin decreased due to a substantial increase in capital, bank acceptance drafts and advance payments for raw materials. As capacity utilization increases, Q3 profits are expected to grow.
The demand for new production capacity is strong, and the target is the industry leading enterprises with comprehensive competitive advantage. According to the company's announcement on July 28, the company's lithium iron phosphate production capacity will reach 6.2 or 122000 tons by the end of 2021-2022. The company's current production capacity is 12000 tons, with a total of 17037.05 tons in-hand orders from July to December (of which Ningde era demand is 15766 tons, accounting for 93%). The company is in a state of full production in short supply, and the demand for new capacity is exuberant. The company actively expands its production capacity and aims to become a leading enterprise with comprehensive competitive advantage in lithium iron phosphate cathode industry within three years.
Embrace the core customers and cooperate with Ningde to lay out the lithium iron phosphate industry chain in the Ningde era. According to the China News, 2021H1 cooperates with core customers such as Ningde Times, Honeycomb Energy, Penghui Energy and Polyfluoroduo, and the new generation of high-pressure solid density lithium iron phosphate material has been approved by some important domestic customers.
Announced in March 2021, Ningde Times Capital increase subsidiary Jiangxi sublimation, including cooperation with an annual output of 50,000 tons of cathode materials, the company and Ningde era join hands to deepen the layout of lithium iron phosphate industry chain. In addition, the company and Stelli lithium industry joint venture layout mineral processing to ensure the supply and use efficiency of key resources.
Profit forecasts and investment advice. It is estimated that the company's EPS in 2021-2023 will be 0.57 pound 1.00 pound 1.44 yuan per share (without taking into account the fixed increase factor), precision components and intelligent electronic control business will be given 20 times PE in 2022, and lithium iron phosphate business will be given 70 times PE in 2022, corresponding to a reasonable value of 41.57 yuan per share, given a "buy" rating.
Risk tips. The sales of new energy vehicles are not as expected; the progress of production expansion is not as expected.
