Benefiting from the rise in volume and price of battery recycling business, the performance in 2021 was + 147% compared with the same period last year. In 2021, the company realized revenue of 3.779 billion yuan (year-on-year + 5.19%) and net profit of 151 million yuan (year-on-year + 146.77%). The performance growth rate is higher than the income growth rate, mainly due to the gradual release of the capacity of the company's battery recycling business, leading to the growth of the overall recycling volume, the proportion of revenue has increased to 23.72% (7.94% in the same period last year), and the gross profit margin is far higher than that of other businesses. The company's gross profit margin increased by 19.7% year-on-year, and its net profit margin increased by 4% year-on-year 2.3pct to 7.3%. The company predicts that 2022Q1 will realize a net profit of 0.85-95 million yuan (compared with the same period last year).
When the capacity of lithium recycling business is growing rapidly, it will promote the layout of the whole industry chain. The company actively deploys the recycling capacity of waste batteries, reaching 20,000 tons / year by the end of 2021, expanding production to 50,000 tons / year in the second quarter of 2022, and increasing the recovery capacity of 50,000 tons / year of lithium iron phosphate in March 2023. The total recovery capacity of 150,000 tons / year of lithium iron phosphate will be completed in the long term, and the landing of the capacity is expected to reflect the performance release. In addition, the company also plans the precursor manufacturing business, and finally forms a complete industry chain of waste battery resource utilization of "battery recycling-element extraction-material manufacturing".
With the advantages of the automobile industry chain, strategic cooperation with JD.com, FAW and Xingheng to build recycling channel barriers.
Automobile enterprises rely on their maintenance channels or become the main channel of power battery recycling, the company's historical main business continues to focus on the layout of the automobile industry chain, through automotive intelligent equipment, scrapped car disassembly and other business, close cooperation with automobile enterprises. At present, the company has signed strategic cooperation agreements with JD.com, FAW and Xingheng to promote the "Internet + recovery" system and stabilize the supply of raw materials. The company's production capacity has the advantage of first-mover, through the framework agreement to further expand the recovery channel, continue to build channel barriers.
Profit forecast and investment advice. It is estimated that the return net profit of the company from 2022 to 2024 is 319 million RMB 513 million RMB, respectively, and the PE is 8.27 times that of 19.10 Compact 11.88 Compact. The company has the advantage of first-mover production capacity to build the whole industry chain of lithium electricity recovery. Taking into account the growth rate of the industry and the valuation of peer companies, it will be given 30 times PE in 2022, corresponding to the reasonable value of 25.26 yuan per share, maintaining a "buy" rating.
Risk hint. The release of market space is not as fast as expected; metal prices have fallen sharply, and so on.
