In the first half of the year, the net profit of returning to the mother was 161 million yuan, and the recycling business of lithium battery continued to increase rapidly. The company's 2022H1 realized revenue of 2.075 billion yuan (year-on-year + 25.07%) and net profit of 161 million yuan (year-on-year + 107.37%). The company's first-half gross profit margin is 20.87%, net profit is 7.8% (3.1pct is higher than the same period last year), and ROE is 7.21%. The high performance increase and the improvement of financial indicators are mainly due to the rapid growth of lithium power recycling business. Jintai Pavilion, a lithium power recycling subsidiary, achieved revenue of 810 million yuan (accounting for 39% of total income Prida) in the first half of the year, with a net profit of 213 million yuan and a net interest rate of 26.3%.
Lithium recycling business is growing by leaps and bounds, and the demand for recycled lithium cobalt and nickel continues to rise. In the first half of the year, the company achieved business income of 820 million yuan (+ 114% compared with the same period last year). The growth of lithium demand led to the rapid growth of sales of the recycling plate, producing 1452 gold tons of metal cobalt, manganese and nickel and 986 tons of lithium carbonate in the first half of the year. Intelligent equipment business achieved revenue of 710 million yuan (+ 13.6% compared with the same period last year), winning the bid during the reporting period, Tesla, Inc., Chang'an, BYD and other projects. Revenue of circular equipment reached 250 million yuan (+ 15.9% compared with the same period last year), heavy industry machinery business declined compared with the same period last year, and management was further strengthened.
Production capacity has the advantage of first-mover and rapid expansion, and the channel network is gradually clear. According to the company's report, the Q3 ternary recovery capacity is expected to expand to 50,000 tons per year in 2022, when the total annual output of cobalt, manganese and nickel is about 12,000 gold tons, and the annual output of lithium carbonate is 5000 tons. In addition, an additional 50,000 tons of lithium iron phosphate recovery capacity will be put into production in the second quarter of 2023, and a total of 150,000 tons / year lithium iron phosphate recovery capacity will be completed. The company's channel network has been laid out rapidly. at present, the company has signed strategic cooperation agreements with JD.com, Xingheng, Haitong Hengxin, Shanxi products, Guangzhou Huasheng, etc., to lay out a national recycling system and build a logistics network to further stabilize the supply of raw materials. continue to build channel barriers.
Profit forecast and investment advice. It is estimated that the return net profit of the company from 2022 to 2024 will be 319 yuan, 513 million yuan, 738 million yuan, respectively, and the PE will be 26.05, 16.21, 11.28 respectively. The company has the advantage of first-mover production capacity to build the whole industry chain of lithium electricity recovery. Taking into account the growth rate of the industry and the valuation of peer companies, it will be given 30 times PE in 2022, corresponding to the reasonable value of 25.26 yuan per share, maintaining a "buy" rating.
Risk hint. The release of market space is not as fast as expected; metal prices have fallen sharply, and so on.