This report is read as follows:
The company's 2021 and 1Q22 results are in line with expectations, and the equity incentive target is higher than expected, demonstrating the company's strong business confidence. Since the second quarter of 22, the accelerated improvement of 21700 of the new platform has continued to improve profitability.
Main points of investment:
Lower the target price to 75.75 yuan to maintain the overweight rating. Considering the pressure of raw materials, the EPS of the company in 2022-2024 is adjusted to 1.93 yuan / 3.03 yuan / 4.01 yuan, and the target price is reduced to 75.75 yuan (originally 110.03 yuan), corresponding to 25 times PE in 2023.
The examination of equity incentive is strict, which shows the confidence of management. According to equity incentives, the company's compound income growth rate from 2021 to 2025 is about 40%, the target profit compound growth rate is about 48%, and the benchmark profit compound growth rate is about 45%, of which the 22-year revenue target is 3 billion yuan and the profit target is 180-200 million yuan. the company's business confidence mainly comes from the downstream boom, on-hand orders, reserve of new customers and the accelerated promotion of 21700 of the new platform.
The company's annual report and quarterly report are basically in line with expectations. In 2021, the income was 2.2 billion yuan, the same increase of 55%, the net profit of 130 million yuan, the same increase of 2%, the same gross profit rate of 20.2%, the same decrease of 3.8pct, the same net interest rate of 5.7%, the same deduction of non-net interest rate of 6.4%, and the same decrease of 1.3 pct; the company's 1Q22 income of 550 million yuan, the same increase of 20%, the net profit of 25 million yuan, 46%, 16.3% and 4.7%. The company's high revenue growth is mainly due to the high prosperity of light lithium electricity and energy storage products, and the lower profit growth is mainly due to the increase in raw materials and R & D expenses.
The general rise of batteries accelerates the promotion of 21700 new platforms, and structural optimization improves profitability. The company's 21700 new platform has obvious performance-to-price advantages under the background of rising battery prices. it is expected that after the inventory of the company's old platform is digested, the proportion of Q2 begins to increase gradually, and the profitability ring returns quarterly under the optimization of product structure. Benefiting from the high prosperity of downstream electric power, electric motorcycle and energy storage, superimposed 21700 new platform promotion, the market share of each track has further increased, and revenue has maintained high growth.
Risk tips: rising prices of raw materials, intensified trade frictions, intensified competition in the industry.