Event: the company publishes its 2022 semi-annual report. The company achieved revenue of 2.782 billion yuan in the first half of the year,-2.8% year-on-year; net profit of 121 million yuan, + 562.65%; and non-return net profit of 116 million yuan, + 725.81% of the same period last year. In a single quarter, 22Q2 achieved revenue of 1.445 billion yuan,-0.61% year-on-year, and net profit of 66.6037 million yuan, + 498.73% compared with the same period last year.
Aluminum foil business volume double rise, track products continue to grow high. From a product point of view, the revenue of 22H1's aluminum processing / paper packaging / functional film / purchase and sales business is 17.86 million yuan respectively, compared with the same period last year, which is + 19.66%, 29.28%, 32.17%, respectively. The aluminum processing business is driven by strong downstream demand, Anhui Zhongji battery foil capacity release, production and sales booming, leading to a high performance increase: 49100 tons of aluminum foil sales in the first half of the year. Among them, Jiangsu Zhongji (food grade) 36600 tons, Anhui Zhongji (battery aluminum foil) 12500 tons, battery aluminum foil downstream customers including Ningde era, multi-fluorine, Xinwanda and many other well-known battery production enterprises, the company racetrack product space is broad and deterministic, power batteries, energy storage batteries, sodium ion batteries continue to open space.
The amount of carbon foil will contribute to profit elasticity immediately, and PET copper foil has the advantage of first-mover. Cut into the high value-added carbon foil track, plan the 5wt carbon foil production capacity, the project is divided into two phases, each phase 2.5wt, the construction cycle is 18 months, according to the feasibility report, after reaching production, the revenue will be 3 billion yuan, the total profit and tax will be 270 million yuan. The company attaches great importance to research and development, has the first-mover advantages of equipment and technology such as magnetic control and evaporation, and increases the reserve of ultra-thin copper film for power batteries. We are optimistic about the long-term competitive advantage and performance flexibility of the company's track products based on customer resource card positions and first-mover equipment and technical support. We estimate that the company's 22-24 net profit is 2.67 million RMB 375 and 485 million respectively, compared with the same period last year, which is + 708.0%, 40.2% and 29.4% respectively. The corresponding PE were 28.43X, 20.28X and 15.67X, respectively. Maintain a "buy" rating.
Risk hint
Risks such as sharp rise in raw material prices, lower-than-expected production capacity, intensified market competition, exchange rate fluctuations, repeated epidemic situations, and so on.