Events:
The company released its annual report for 2021, with annual revenue of 3.779 billion yuan, an increase of 5.19 percent over the same period last year, and a net profit of 151 million yuan (deducting 88 million yuan), an increase of 146.77 percent over the same period last year (deducting an increase of 1819.76 percent over the same period last year). Profit distribution plan: cash distribution of 0.3 yuan (including tax) for every 10 shares.
The quality of the report has room for optimization, and the profitability is expected to continue to improve.
During the reporting period, the company's sales gross profit margin and net profit margin were 19.72% and 3.70% respectively, an increase of 2.14% and 1.29% over the same period last year, and the expense rate during the sales period was 15.03%, which remained relatively stable; ROE (weighted) 7.26%, a sharp increase of 4.10% over the same period last year, and the company's overall profitability improved to a certain extent. During the reporting period, the company's cash-to-cash ratio was 69.76%, a slight increase of 0.67% over the same period last year, but the net current value was 91 million yuan, down 40.84% from the same period last year, mainly due to the increase in repayment in the form of bills and the increase of prepayments and inventory. During the reporting period, the company's asset-liability ratio dropped slightly to 64.67% compared with the same period last year, still at a relatively reasonable level, with current ratios and quick ratios of 1.15 pounds and 0.86 respectively, showing an overall trend of improvement.
The company recently issued a forecast of 2022Q1 performance, with an estimated net profit of 0.85 million yuan, an increase of 110.98% to 135.81% over the same period last year, and a deduction of 0.70 million yuan for non-net profit, an increase of 90.97 million 118.25% over the same period last year. We judge that in the context of the market boom, with the release of the company's lithium recycling plate capacity, the company's profitability is expected to continue to improve.
Lithium recycling business is in a period of rapid expansion, opening up room for long-term growth.
During the reporting period, the company's lithium battery recycling business income of 896 million yuan, an increase of 214.07% over the same period last year, gross profit margin 35.68%, is the company's fastest revenue growth, the strongest profitability of the business sector. Tianqi Jintai Pavilion, a subsidiary of the company responsible for lithium recycling, produced 1887 gold tons of cobalt, 1024 gold tons of nickel, 436 gold tons of manganese and 1792 tons of lithium carbonate in 2021. The average metal recovery rate of cobalt, manganese and nickel is 98%, and the average recovery rate of lithium is 85%, ranking the leading level in the industry. It is estimated that with the gradual progress of production expansion and technological transformation, the overall capacity of the company's lithium battery recycling plate in 2022 will be 9000 gold tons of cobalt-manganese-nickel and 4000 tons of lithium carbonate, and 12000 gold tons of cobalt-manganese-nickel and 5000 tons of lithium carbonate in 2023. The company also announced that it will build a new lithium iron phosphate recycling capacity of 150,000 tons / year in 2022, of which the first phase of the project will have a treatment scale of 50,000 tons / year, and Tianqi Jintai Pavilion will form a treatment capacity of 100000 tons of waste lithium batteries by 2023. The continuous expansion of the company's lithium battery recycling business will open up long-term growth space for the company.
The company is committed to building a "Internet + recycling" platform for waste lithium electricity, and establishes a nationwide waste lithium battery recycling service network by deeply binding battery enterprises, battery users, recycling enterprises and related financial, science and technology, service companies, etc. to provide raw material guarantee for lithium battery recycling business. Recently, the company has signed cooperation agreements with FAW, JD.com, Xingheng Power supply, etc., and the construction of the platform is becoming more and more perfect, constantly empowering the lithium recovery channel.
Strategic layout of the whole life cycle of the automobile, coordinated development and comprehensive advantages are obvious that the company is committed to serving the whole life cycle of the automobile. In addition to the lithium recycling business, the intelligent equipment business and recycling equipment are deeply ploughing the automobile industry chain. It has a prominent position in automobile intelligent equipment, automobile lending, scrap equipment and other related fields, and has established a stable and close cooperative relationship with well-known automobile brands at home and abroad. Automotive industry resources will become an important boost to the company's lithium battery recycling business. The diversified coordination of the industrial chain will also enhance the company's comprehensive competitive advantage.
Valuation analysis and rating description
It is estimated that the net profit of the company in 2022-2024 is 353 million yuan, 527 million yuan and 698 million yuan respectively, and the corresponding PE is 18 times, 12 times and 9.0 times respectively. Lithium battery recycling is in a period of rapid growth, covering it for the first time and giving it a "recommended" rating.
Risk Tips:
The company's lithium battery recycling capacity releases the risk that it is less than expected, and the profitability of other businesses is not as good as expected.