Event
The company released its quarterly report for 2022, with a revenue of 944 million yuan, an increase of 29.95% over the same period last year, and a net profit of 89 million yuan (deducting 78 million yuan), an increase of 121.22% over the same period last year (deducting an increase of 112.72%). Basic earnings per share is 0.24 yuan.
Profitability continues to improve, and there is room for improvement in cash flow.
During the reporting period, the company's profitability continued to improve: the gross profit margin of sales was 23.89%, down 1.01% from the same period last year; the net profit rate was 9.19%, up 3.39% from the same period last year; the expense rate during the sales period was 14.17%, down 3.39% from the same period last year; ROE (weighted) 4.20%, up 2.29% from the same period last year. During the reporting period, the company's debt structure remained relatively stable: the asset-liability ratio dropped slightly to 64.07% compared with the same period last year, and the current ratio and quick ratio were 1.18 and 0.84 respectively.
During the reporting period, the company's cash flow was poor: during the reporting period, the company's cash-to-cash ratio was 79.60%, a sharp decrease of 44.8% over the same period last year, and a net cash outflow of 106 million yuan, a sharp drop of 450.15% over the same period last year.
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 recently 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 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 13 times, 9.0 times and 6.8 times respectively. Be optimistic about the long-term growth potential of the company's lithium battery recycling business and maintain the "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.
