Main points of investment
Event: Tianqi Co., Ltd. and Guangzhou Huasheng Science and Technology Information Service Co., Ltd. signed a "cooperation agreement" to jointly carry out new energy vehicle power battery after-sales service business and jointly build power battery recycling system.
Guangzhou Huasheng is a national auto repair service group. Guangzhou Huasheng is a national auto repair service group. 1) Guangzhou Huasheng provides digital auto repair solutions for mid-and high-end car owners and auto repair service stores. It has opened 265 luxury car chain stores in 168 economically developed cities across the country. 2) Guangzhou Huasheng has developed the after-sales service business of new energy vehicles and has reached strategic cooperation with more than 20 mainstream new energy automobile enterprises, such as XPeng Inc., NIO Inc. Automobile, BAIC Polar Fox, etc., and has obtained the authorization of many battery factories, such as Ningde Times, Funeng Battery, Jiewei Power, etc., and has more than 160 authorized stores. 3) Guangzhou Huasheng has successfully developed the B-end operating platform market and has carried out business cooperation with Youpeng Travel and T3 Travel to provide after-sales services for new energy vehicles and power batteries. Guangzhou Huasheng has initially established an automobile aftermarket service system covering major cities across the country, and is an important participant in the after-sales service of power batteries.
Strong cooperation, grasp the power battery recycling car after the market channel. The cooperation includes four aspects: 1) jointly build a power battery life cycle service network: through a joint venture company, it is planned to jointly layout more than 300 after-sales service outlets for new energy vehicle power batteries within 3 years, to obtain regional after-sales authorization from mainframe factories and battery factories; 2) Technical discussion and research on power battery remanufacturing 3) Construction of power battery recycling system: co-construction of scrapped battery recycling system, in-depth discussion and co-establishment of regional pretreatment center for scrapped power battery; 4) battery financial and ecological business cooperation:
For the battery industry terminal application scenarios (such as exchange power stations, energy storage power stations, battery leasing, etc.) to provide financing, operation and maintenance, recovery of the overall closed-loop services, for the battery bank to provide the overall post-lease solution. This time, the company cooperates with the automotive aftermarket leader to jointly layout the after-sales service network of power battery. closely link battery manufacturers, vehicle manufacturers, battery banks, ride-hailing platforms, individual car owners (C-end users) and other important power battery recycling channels.
The recycling channel is fully covered, and the company has outstanding channel advantages. This cooperation with Guangzhou Huasheng, a leader in the automotive aftermarket, is an important breakthrough in recycling channels. Previously, the company's landing cooperation at the channel end includes vehicle enterprises (FAW Group), Internet + e-commerce (JD.com technology), light vehicle lithium faucet (Xing Heng Power supply), battery asset management service provider (Haitong Hengxin), the company has outstanding channel advantages.
Lithium cycle long slope thick snow, the company's rapid capacity expansion & accelerated channel layout. The lithium cycle has increased by 18% over the past 15 years, and the space of long slope and thick snow is nearly 300 billion in 2035. The production capacity of Jintai Pavilion will be expanded to 50,000 tons of waste ternary batteries in the second half of 2022, and the first phase of the 150000 ton waste lithium iron phosphate battery project is expected to be completed in March 2023. The Longnan Economic Development Zone project will be dominated by waste lithium battery raw materials, forming a ternary precursor project of 30,000 tons per year and battery-grade lithium carbonate of 120,000 tons per year. Capacity expansion to match the channel layout to ensure the utilization rate of project capacity.
Profit forecast and investment rating: we maintain the previous forecast of 2022-2024 homing net profit of 349, 558 and 653 million yuan, corresponding to the 2022-2024 EPS of 0.92, 1.47 and 1.72 yuan respectively.
The current market capitalization corresponds to the 2022-2024 PE 23.4, 14.7 and 12.5 times the market capitalization. Maintain a "buy" rating.
Risk hint: sales of new energy vehicles are not as expected, the progress of the project is not as expected, and competition is intensified.