One of the leading companies in the domestic electronic copper foil industry, PCB copper foil + lithium copper foil two-wheel drive. As of the date of disclosure of the 21 Annual report, the company has a total production capacity of 45,000 tons / year of electronic copper foil products, of which PCB copper foil production capacity is 25,000 tons / year, lithium battery copper foil production capacity is 20,000 tons / year, forming a "PCB copper foil + lithium copper foil" two-wheel drive business development model. Tongling II, a listed investment project, is expected to increase the production capacity of PCB copper foil by 10, 000 tons, with a construction period of 21 months. According to the company's investor relations activity record table on May 13, it is estimated that an additional 10,000 tons of standard foil production capacity will be completed and put into production by the end of 2022. In April 2022, Tongling Copper foil, a wholly owned subsidiary of the company, signed the Investment Agreement of the Electronic Copper foil Project with an annual output of 20,000 tons with the Tongling Municipal people's Government and the Management Committee of Tongling Economic and technological Development Zone. an agreement was reached on the investment and construction of Tongling copper foil in Tongling Economic Development Zone. It is estimated that after completion, the company's electrolytic copper foil production capacity will reach 75000 tons.
Deep ploughing electronic copper foil R & D and production, lithium copper foil has a broad space for growth. The company is in a leading position in the field of RTF foil, high-end PCB copper foil sales have increased significantly in recent years, fund-raising projects are expected to further expand the high-end advantage. The company's lithium copper foil business is developing rapidly, with a steady increase in the proportion of sales of products below 6 μ m, and a broad space for growth. Tongling copper foil will increase the annual output of 20,000 tons of electronic copper foil project, which will help to further increase the company's market share of lithium copper foil.
Profit forecast and investment advice: the company's revenue from 2022 to 2024 is expected to be 4.569 billion yuan, 5.574 billion yuan and 6.484 billion yuan respectively, and the net profit of returning mother is 622 million yuan, 783 million yuan and 945 million yuan respectively, and the corresponding EPS is 0.75,0.94 and 1.14 yuan per share respectively. Based on the comparable company valuation and the company's market position in the standard copper foil among domestic enterprises, we believe that the company's 22-year reasonable PE valuation is 20 times, corresponding to the company's reasonable value of 15 yuan per share, covering and giving the company a "buy" rating for the first time.
Risk hints: the risk of sharp fluctuations in raw material prices; the risk of intensified competition in the industry; and the risk that the production schedule of the fund-raising project is not as expected.