This report is read as follows:
The company's performance was slightly lower than expected. The company insists on reducing cost and increasing efficiency, optimizing product structure, and is expected to maintain the rise of volume and profit as the new base is completed and put into production. In addition, the company is expected to benefit from the explosion of demand for vanadium products brought about by the industrialization of vanadium batteries.
Main points of investment:
Maintain the "overweight" rating. In the past 21 years, 2022Q1 achieved revenue of 1496 yuan and 31.1 billion yuan, up 39% and down 6% respectively from the same period last year, while the net profit of returning to its mother was 26.88 yuan and 312 million yuan, up 58% and 35% respectively from the same period last year, and the performance was slightly lower than expected. Taking into account the high price of raw materials and other factors, the EPS forecast for 22-23 years is 0.24max 0.26yuan (the original 0.35max 0.38yuan), and the new 24-year EPS forecast is 0.29yuan. Taking into account the rise in raw material prices brought about by the plate valuation adjustment, with reference to similar companies to give 22 years 13 times PE valuation, downgrade the target price to 3.12 yuan (the original 3.60 yuan), maintain the "overweight" rating.
We will continue to reduce costs and increase efficiency, and achieve a simultaneous increase in volume and profit. In 21 years, the expense rate of the company during the period was 8.63%, 1.47% lower than that of 20 years; the net interest rate of sales was 2%, an increase of 0.11% over 20 years; and the company's sales of steel and vanadium products were 2555 and 16200 tons respectively, an increase of 8.76% and 8.96% respectively over the same period last year. In the future, the company will continue to tap potential and increase efficiency, and profitability is expected to continue to improve.
Optimize the product structure, will benefit from the high scenery of vanadium products. In the past 21 years, the company has developed nearly 100 new steel products, and a number of products have filled the domestic gap and realized import substitution; in addition, the company has successfully developed 99.9% energy grade vanadium oxide, vanadium battery electrolyte, metal vanadium and other high-end products. The company's vanadium product production capacity of 22000 tons / year, the world's leading production technology, low cost, and has the ability to mass produce vanadium battery electrolyte. We believe that the company is expected to benefit from the explosion of demand for vanadium products brought about by the industrialization of vanadium batteries.
Full efforts will be made to promote the construction of the new base, and the production capacity will be further increased. In October, 21, the company announced that in order to do a good job in the relocation of the old area of Handan and the construction of the new base, it would set up a joint venture with Hebei Nengjia and Nenghua Company to set up a steel and coking project company, with 51% of the shares. It is expected that the project companies will be completed and put into production in June 22, and the company's steel and coking capacity will be greatly increased, which will bring performance increments for the company.
Risk hint: the production of the new base has been delayed and the downstream demand has dropped sharply.