Event: Node disclosed the first quarter report of 2022 that 2022Q1 achieved operating income of 1.112 billion yuan, up 25.0% from the same period last year, down 8.09% from the previous year; net profit from the home was 127 million yuan, up 94.05% from the same period last year, up 51.97% from the previous year; deducting 110 million yuan from non-net profit, up 80.45% from the same period last year, up 38.68% from the previous month.
The volume and price of the company's products have risen, and the performance is in line with expectations. 202Q1 achieved an annual operating income of 1.112 billion yuan, an increase of 25.0% over the same period last year. Due to seasonal factors such as the Spring Festival, revenue decreased by 8.09% month-on-month. Due to the high prosperity of lithium electricity downstream, the processing fee of copper foil industry has increased by 0.5-10,000 yuan / ton in 21 years. 2022Q1 realized a gross profit of 265 million yuan, an increase of 37.38 percent over the same period last year and a decrease of 14.16 percent from the previous month.
Attach importance to research and development, the expense rate decreased significantly during the period. During the period of 2022Q1, the cost increased by 5.11% to 126 million yuan over the same period last year, and the expense rate during the period decreased by 2.14pcts from 13.47% to 11.33% →. Specifically, the sales expenses decreased by 30.91% to 7 million yuan compared with the same period last year, and the sales expense rate decreased from 1.08% → 0.60% to 0.48pcts; the management expenses decreased by 6.04% to 35 million yuan compared with the same period last year, and the management expense rate decreased by 4.14% → 3.11%, down by 1.03pcts. Financial expenses decreased 29.4% to 42 million yuan compared with the same period last year, and the financial expense rate decreased from 6.71% → 3.79% to 2.92 pcts; R & D expenses increased by 210.36% to 43 million yuan, and the R & D expenditure rate increased by 1.54% → 3.83%, an increase of 2.29pcts over the same period last year.
The company accelerates the process of production expansion and forms a stable supply relationship with high-quality customers. The company currently has two major copper foil bases in Qinghai and Huizhou, with a total production capacity of 43000 tons. The Qinghai base has a production capacity of 15000 tons under construction; the Huizhou base has now completed commissioning and started mass production of 12000 tons of new capacity. In addition, the company is also planning to build a 15000-ton copper foil project at the Qinghai base; the 50, 000-ton Huangshi project is expected to be put into production in mid-2023, with a production capacity of 135000 tons. We estimate that by the end of 2023, the company will have a production capacity of 720000 tons. From the perspective of customer structure, the company relies on technological advantages to maintain stable cooperation with customers such as CATL, BYD, CNAC Lithium, Guoxuan Hi-Tech, Yiwei Lithium Energy and Funeng Technology in the domestic market, while also supplying bulk products to overseas customers such as LG Chemical, Panasonic, ATL and SKI.
The company intends to buy back shares to demonstrate confidence in development. On April 25, the company announced that it intends to use its own funds or self-raised funds to buy back some of the company's shares for the implementation of equity incentives or employee stock ownership plans. The repurchase fund scale is not less than 100 million yuan, not more than 150 million yuan, the repurchase price is not more than 11 yuan per share, and the redeemable shares are between 909.1 and 13.634 million shares, accounting for 0.52% of the company's total share capital. 0.78%.
The company's volume is just around the corner, and its performance has entered a period of high growth. We assume that the processing fee will remain unchanged from 2022 to 2024, and the processing fee of 4.5 $6 / 8 μ m will be 10,000 yuan / ton on 7-5-4 respectively. Affected by the epidemic, it is estimated that the company's copper foil production from 2022 to 2024 will be 5.5pm 8.0000T, corresponding to 2022max 2023max net profit will be 8.07,11.51 and 1.553 billion yuan respectively. Based on the market capitalization of 1.5 billion yuan on April 27, the corresponding PE of the company from 2022 to 2024 is 19,13,10X respectively.
Maintain the company's "buy" rating.
Risk reminder events: project construction schedule is not as expected; risk of industrial policy fluctuations; sales of new energy vehicles are not as expected; industry capacity release is higher than expected; epidemic risk; substantial upward risk of raw materials; downside risk of processing fees.