Event: the company released its 2021 annual report that its operating income in 2021 was 4.446 billion yuan, an increase of 106.32% over the same period last year, of which 2021Q4's operating income was 1.21 billion yuan, up 52.96% from the same period last year, down 1.51% from the previous month. The net profit of homing in 2021 was 405 million yuan, an increase of 7422 percent over the same period last year, of which the net profit of 2021Q4 was 84 million yuan, an increase of 284.66 percent over the same period last year and a decrease of 30.47 percent from the previous year.
The non-home net profit deducted in 2021 was 375 million yuan, an increase of 842.6% over the same period last year, of which 2021Q4 deducted non-home net profit of 79 million yuan, an increase of 552.6% over the same period last year and a decrease of 25.19% from the previous year.
Copper foil products contribute mainly to revenue and gross profit. In 2021, the revenue of copper foil products was 4.086 billion yuan, accounting for 91.9% of the total revenue, an increase of 116.4% over the same period last year. The gross profit contributed by copper foil products in 2021 was 1.005 billion yuan, accounting for 91.5% of the total gross profit. Trade, wire and cable and accessories products contributed a gross profit of 0.56 yuan and 30 million yuan, accounting for 5.1% and 2.7%, respectively. The company's pricing model is "copper price + processing fee". The copper price is high in 2021. Under the booming demand for lithium copper foil and the company's continuous infiltration to extremely thinned copper foil, the processing fee has also increased significantly. The gross profit margin of copper foil products in 2021 is 24.61%. An increase of 5.69 percentage points over the same period last year.
The production capacity of copper foil is the leading in China, with a long-term capacity of 185,000 tons / year. According to the company announcement, the company's existing copper foil production capacity of 43,000 tons / year, of which Qinghai Electronics, Qinghai Nuode, Huizhou United copper foil production capacity of 2.5 million tons / year, 10 million tons / year. In 2021, the company's copper foil production and sales were 35,500 tons respectively, an increase of 61.7% and 72.7% respectively over the same period last year. According to the statistics of the China Nonferrous Metal processing Industry Association, the company's copper foil accounts for about 14% of the national proportion, which is in the leading level.
(1) the capacity of the incremental project in 2022 will be increased to 70,000 tons / year: 1) Qinghai Norde copper foil capacity of 15,000 tons / year is under construction and is expected to be put into production in 2022; 2) according to the company's announcement, Huizhou base fixed additional project 120,000 tons / year new production capacity has been completed and mass production has been completed, and the total production capacity has been increased to 20,000 tons / year after full production.
(2) the future copper foil production capacity will be expanded to 185,000 tons / year: 1) Qinghai Norde prepares to build an increase project with an extremely thin lithium copper foil production capacity of 15,000 tons / year, which is expected to be put into production in 2023; 2) Huangshi base plans high-end lithium copper foil production capacity of 100,000 tons / year, the first phase capacity is estimated to be put into production before June 2023.
Deep accumulation of copper foil technology, binding high-quality customer resources capacity release can be expected. The company has been committed to the scientific and technological innovation of new energy and new materials for a long time, has accumulated profound copper foil technology, and resolutely adjusted the product structure according to the changes of customer demand, and increased the production of 6 micron copper foil. at the same time to achieve less than 6 micron copper foil technology upgrading and product application. According to the company announcement, the company maintains stable cooperation with CATL, BYD, China New Airlines, Guoxuan Tech, Yiwei LiNeng and other customers, while also supplying bulk products to overseas customers such as LG Chemical, Panasonic, ATL and SKI, etc., the company continues to consolidate the existing customer structure, do a good job of core customer service, and at the same time expand the new layout in the field of lithium copper foil, capacity is expected to continue to release.
We will actively carry out copper futures hedging to boost the release of operating profits. According to the company announcement, the company intends to carry out futures hedging business for the non-ferrous metal copper involved in the relevant projects, and to carry out the total hedging contract value of no more than 1.28 billion yuan or the equivalent foreign currency amount in the procurement, sales and production business. the non-ferrous metal hedging business in which the margin does not exceed 256 million yuan or the equivalent foreign currency amount, the company actively carries out copper futures hedging and hedges the price risk of raw materials such as copper wire to earn considerable processing fees. Or promote the release of operating profits.
Investment suggestion: we estimate that the company's operating income from 2022 to 2024 will be 68.1,91.63 and 12.031 billion yuan respectively, and the net profit will be 8.33,12.2 and 1.785 billion yuan respectively, and the corresponding EPS will be 0.48,0.7,1.03 yuan per share respectively. At present, the stock price corresponding to PE is 21.5,14.7,10.0 times. Give "over-A" rating, with a 6-month target price of 13 yuan per share.
Risk hint: raw material prices fluctuate sharply, demand is lower than expected, and project progress is not as expected.
