The company announced its 2021 annual report: in 2021, the company achieved revenue of 4.35 billion yuan (+ 93.00%), net profit of 663 million yuan (+ 98.25%), and non-return net profit of 694 million yuan (+ 268.94%). 2021Q4 achieved revenue of 1.146 billion yuan, an increase of 90.57% over the same period last year, an increase of 1.96% over the same period last year, a net profit of 177 million yuan, an increase of 2.63% over the same period last year, an increase of 35.56% over the previous year, and a net profit of 151 million yuan, an increase of 256.45% over the same period last year and a decrease of 0.46%.
The volume and price of copper and cobalt rose, and the company's performance increased significantly. In terms of products, the revenue of cobalt products in 2021 was 2.562 billion yuan, accounting for 58.91% of revenue, 65.89% of gross profit and 34.38% (+ 19.08%) of gross profit. The revenue of electrolytic copper is 1.778 billion yuan, accounting for 40.87% of revenue, 33.88% of gross profit and 25.48% (- 7.08%) of gross profit. Price: the average selling prices of cobalt products and copper products are 31.09 million yuan / ton (+ 63.43%) and 5.14 million yuan / ton (+ 26.21%) respectively. Production and marketing: 1) due to the full release of the production capacity of the electrolytic copper project with an annual production capacity of 20,000 tons of Hanrui Metals, the output of electrolytic copper in 2021 was 39900 tons (+ 46.09%), and the sales volume was 34600 tons (+ 26.64%). Inventory increased by 5681.03% compared with the same period last year. 2) due to the increase in the production of 3000 tons of cobalt powder in Anhui Hanrui and the increase in the production of cobalt cobalt hydroxide in Congo, the output of cobalt products in 2021 was 7900 tons (+ 24.82%), the sales volume was 8200 tons (+ 38.08%), and the inventory decreased by 17.58% compared with the same period last year.
The volume of projects under construction can be expected, and new energy materials will be actively distributed. The company's projects under construction include: 1) the production capacity of cobalt hydroxide of cold sharp metals in Congo is increased by 5000 tons / year, which is expected to be put into production in mid-2022, and the total capacity of cobalt hydroxide in Congo will reach 10,000 tons / year. 2) the production capacity of Anhui Hanrui cobalt powder is increased by 2000 tons / year, and it will be put into production at the beginning of 2022, and the total production capacity of cobalt powder will reach 5000 tons / year. 3) the project of 10,000 tons / year cobalt salt and 26,000 tons / year ternary precursors in Ganzhou is progressing smoothly. At present, the first phase of infrastructure work has been completed and is expected to be put into production by the end of June 2022.
The tight supply and demand pattern of the cobalt industry remains unchanged, and cobalt prices are expected to maintain high operation. Demand side: thanks to the rapid increase in global penetration of new energy vehicles and the demand for cemented carbide, the demand for cobalt continues to grow. Supply side: the global cobalt supply mainly comes from Congo, and the future cobalt mine increment is expected to come from Glencore Mutanda resumption, China Molybdenum capacity commissioning and Indonesia wet smelting project, but the global epidemic continues to impact logistics, transportation and new projects progress is lower than expected, cobalt prices are expected to remain high in 2022.
The listing of Hong Kong stocks is just around the corner, helping the layout of new energy. At present, the Hong Kong Stock Exchange has reviewed the listing application submitted by the company and is still awaiting formal approval. According to the company's Hong Kong stock prospectus, the funds raised are mainly used for overseas investment, acquisition and exploration of cobalt, nickel, lithium and other resources, and for the expansion of cobalt salts, cobalt powder and ternary precursors. The advantages of convenient financing of Hong Kong stocks will help the company to realize the layout of overseas resources, and the growth space will be further expanded.
Profit forecast and investment suggestions: the company continues to promote its production expansion project, actively arranges the integration of industry chain and new energy. In 2024, the company will achieve a net profit of 1.370 billion yuan, corresponding to the closing price of April 18, PE is 17X/14X/13X, maintaining the "recommended" rating.
Risk tips: the progress of the project is not as expected, the price of copper and cobalt is falling, and the epidemic affects production and operation.
