What happened: the company disclosed its annual report 2021 and quarterly report 2022.
The 21-year net profit of returning to the mother is 53 million yuan, in line with expectations. In 2021, the company achieved revenue of 803 million yuan, + 125% year-on-year; net profit of 53 million yuan, + 282%; and non-return net profit of 51 million yuan, + 253% of the same period last year.
22Q1 returned to its mother with a net profit of 41 million yuan, its performance exceeded expectations and its profitability increased significantly. In the first quarter of 2022, the company achieved revenue of 277 million yuan, + 117% year-on-year, + 8% month-on-month; realized net profit of 41 million yuan, + 323%, + 193%; and deducted non-return net profit of 41 million yuan, + 344% year-on-year and + 215% month-on-month. Gross profit margin 25.91%, month-on-month ratio + 10.03pcts; net profit rate 14.66%, month-on-month ratio + 9.06pcts.
Has broken through BYD, Ningde and other head battery customers, the company's new 22H2 capacity release, the fundamentals continue to rise. In the past 21 years, the company has stepped into the fast track of growth, and the production capacity of lithium cathode business has been expanded, breaking through the top customers such as BYD and Ningde era, and signed a 22-year order of 800 million with Penghui Energy. In 21 years, the company sold 6102 tons of lithium electrodes, and the company is currently accelerating production expansion in Shandong, Anhui, Yunnan and other places. It is estimated that by the end of the 22nd, the iron and lithium production capacity is expected to reach 100000 tons, and the ternary production capacity is expected to reach 15000 tons. We expect most of the new capacity to be launched around the middle of the year, with larger shipments in the second half of the year.
Card position Yunnan high-quality resources, integrated layout of 200000 tons of cathode materials. The company invests in the construction of 200000 tons of lithium cathode materials in Yuxi, Yunnan, and integrates upstream resources such as clay lithium extraction and iron phosphate. In April 22, the people's Government of Yunnan Province issued the three-year Action Plan for the Development of Yunnan New Energy Battery Industry (2022 Mel 2024) to build Yunnan's new energy industry chain with an output value of 100 billion yuan in 2024. The company takes the lead in layout, and has obvious advantages in seizing positions and resources.
New products continue to be invested in research and development, and overseas markets are actively being developed. The company continues to invest in research and development, actively layout lithium ferromanganese phosphate, ultra-high nickel ternary, NCA ternary, lithium-rich manganese base, solid-state battery cathode and other new technology products.
In addition, the company has set up an office in Korea to promote technical exchanges and cooperation with overseas potential customers such as LG, and speed up the development of the international market.
Traditional oxalic acid business contributes stable profits. Oxalic acid is the company's traditional business, with an annual production capacity of 100000 tons and a market share in the forefront of the industry. In 21 years, the total sales of oxalic acid business is about 60,000 tons, and the production capacity is not full due to environmental protection and other factors. We expect that the utilization rate of oxalic acid capacity will be improved this year.
Profit forecast and valuation: we expect the company to achieve a net profit of RMB 260,877,729 million respectively from 2022 to 2024, an increase of 389.1%, 87.6%, 49.6%, corresponding to a PE of 17.3, 9.2, 6.2 times, respectively, maintaining a "buy" rating.
Risk hints: the progress of capacity construction is not as expected; downstream demand is lower than expected; upstream raw material price fluctuation risk; market competition aggravates risk