The company announced its 2022 semi-annual report: the revenue of H1 company in 2022 was 2.793 billion yuan, up 34.28% from the same period last year; the net profit from returning to the mother was 305 million yuan, down 14.22% from the same period last year; and the net profit from non-return was 328 million yuan, down 16.23% from the same period last year. From a quarterly point of view, 2022Q2 achieved revenue of 1.22 billion yuan, up 16.86 percent from the same period last year, down 22.46 percent from the previous year; net profit from its mother was 132 million yuan, down 48.57 percent from the same period last year and 24.25 percent from the previous quarter; and deducting 101 million yuan from the same period of last year, down 42.75 percent from the same period last year and 55.30 percent from the previous year.
Copper prices fell, management costs increased, dragging down the first half of the year results. The pricing of the company's cobalt products is based on the MB cobalt price, while the Q2MB cobalt average price is up 5.71% month-on-month, and the copper average price is down 4.84%. The price of copper products is under pressure; 2022H1, the company's salary increases due to the payment of Hong Kong stock listing fees and the landing of the production expansion project, and the management cost reaches 127 million yuan, which is a drag on the company's performance compared with the same period last year. Product by product: 1) Revenue contribution:
Revenue of H1 and cobalt products in 2022 was 1.502 billion yuan, + 27.08% compared with the same period last year; revenue of copper products was 1.282 billion yuan, + 42.87% 2) gross profit margin: gross profit margin of H1 cobalt products in 2022 was 33.63%, year-on-year + 0.79pcts; operating cost of electrolytic copper increased by 67.71% over the same period last year, mainly due to the increase in the price of upstream ore raw materials, and the gross profit margin of electrolytic copper products was 20.35%, year-on-year-11.8pcts.
The production expansion project has been gradually launched, and the capacity advantage has enhanced the competitiveness of copper and cobalt products. Congo subsidiary 6000 tons / year electrolytic copper production line switching project 21 has been put into production at the end of the year; the company's cobalt powder products have excellent quality and performance, can meet the customized needs of different customers, and have strong international competitiveness. The subsidiary Anhui Hanrui added 2000 tons of cobalt powder technical renovation project and the cold sharp metal increased 5000 tons / year cobalt hydroxide project has been put into production in March and June 2022, respectively. The company has formed the annual production capacity layout of "5000 tons of cobalt powder + 10,000 tons of cobalt hydroxide + 41000 tons of electrolytic copper", and the capacity advantage will effectively guarantee the source of future revenue.
The layout of the whole cobalt industry chain, new energy materials open the space for future growth. The installation of equipment has been completed in the first phase of Ganzhou Hanrui 10,000 tons / year cobalt new material and 26,000 tons / year ternary precursor project, and now it has been trial produced. after it is put into production, it will fill the deep processing vacancy of cobalt wet smelting and reduce the cost of cobalt salt processing outside the committee. create the layout of the whole industry chain and enhance the company's profitability in the future. The company is accelerating the acquisition and acquisition of upstream resources of new energy (metals such as cobalt, nickel and lithium) and the construction of battery recycling production line. the company's goal is to copy the layout model of the whole cobalt industry chain and strive to open up the new energy industry chain and give full play to the advantages of integration.
Cobalt industry tight balance pattern supports cobalt price. Demand side: cobalt is indispensable in ternary batteries. With the advent of the peak season of consumer electronics and the release of ternary batteries in the second half of the year, the demand for cobalt will continue to grow. 2) supply side: Glencore Mutanda resumes production in 2022 and China Molybdenum capacity is put into production to increase supply-side pressure, but the epidemic repeatedly impacts logistics and transportation, the progress of new projects is lower than expected, and the supply and demand of cobalt industry may still maintain a tight balance in 2022.
Profit forecast and investment advice: the company continues to promote production expansion projects, actively arranges the integration of industry chain and new energy, considering that the price of the company's products is affected by copper and cobalt prices, we revise the company's homing net profit of 2022 shock 2023 shock 2024 to 7.62 shock 9.44 shock 1.04 billion yuan, corresponding to the closing price of August 12 PE is 22X/18X/16X, maintaining the "recommended" rating.
Risk hint: the price of copper and cobalt fell, the epidemic affected production and operation, and the progress of the new project was not as expected.
