Lithium recycling is imperative, or it will usher in a market of hundreds of billions of dollars. In recent years, the scale of domestic new energy vehicle market has been increasing. As the retirement life of new energy vehicle power lithium battery is 5-8 years, new energy vehicle and power lithium battery will enter the peak period during the 14th five-year Plan period. The recycling and utilization of power lithium battery will determine the efficient circulation and sustainable development of the new energy industry chain. With the improvement of environmental protection requirements in the future, the field of lithium battery recycling may usher in a market scale of hundreds of billions of dollars.
The company's lithium battery recycling business is growing rapidly, and the production capacity has entered a rapid release period. At present, the company's lithium battery recycling plate has the capacity to deal with 20,000 tons of waste lithium batteries per year. After the production expansion and technical renovation project is completed and put into production, the treatment scale will be increased to 50,000 tons of waste lithium batteries per year. At the same time, the company plans to build a new 150000 tons of waste lithium iron phosphate battery recycling project. The continued expansion of the company's lithium battery recycling business will open up long-term growth space for the company.
Gather various resources to build battery recycling channels. In order to ensure the stability of raw materials for the follow-up lithium battery recycling business, the company will deeply bind enterprises in all aspects of the lithium battery industry chain, jointly build a "Internet + recycling" platform for waste lithium battery, establish a nationwide waste lithium battery recycling service network, and jointly build a waste lithium battery recycling ecosystem to form a lithium battery service and recycling system with Tianqi enterprise characteristics.
Strategic layout of the whole life cycle of the automobile, coordinated development has obvious comprehensive advantages. The company is committed to serving the whole life cycle of automobiles. in addition to lithium recycling business, intelligent equipment business and recycling equipment are deeply ploughing the automotive industry chain, and have a prominent position in automotive intelligent equipment, automobile lending, scrap equipment and other related fields. it has established a stable and close cooperative relationship with well-known automobile brands at home and abroad, and the resources of the automotive industry will become an important driving force for the company's lithium recycling business. The diversified coordination of the industrial chain will also enhance the company's comprehensive competitive advantage.
Investment suggestion: it is estimated that the net return profit of the company in 2022, 2023, and 2024 is 3.5, 5.3, 200,000,000 yuan, respectively, and the corresponding EPS is 0.93, 1.39 and 1.84 yuan per share, respectively, and the corresponding PE is 19x/12x/9x, respectively. It is expected that the company's lithium battery recycling business will grow rapidly in the future, which is expected to contribute to higher profits, while smart equipment, recycling business and heavy industry machinery will maintain steady growth. The overall growth of the company is outstanding, and there is still a lot of room for improvement in the current valuation. Be optimistic about the long-term growth potential of the company's lithium battery recycling business and maintain the "recommended" rating.
Risk tips: the risk that the development of the new energy vehicle industry is not as expected; the risk of fluctuations in upstream raw material prices; the risk that the company's lithium recovery capacity releases less than expected risk; the risk that the profitability of other businesses is not as good as expected; the risk of increased competition in the industry.