Event: the company released its mid-2022 report, with a substantial increase in revenue. In 2022, the revenue of H1 company was 50.443 billion yuan, + 34.75% compared with the same period last year, and the net profit was 389 million yuan, + 4.42% compared with the same period last year.
Performance-driven: double increase in production and sales of the company's copper processing products, rare earth permanent magnet plate benefit from rising prices of NdFeB magnetic materials and rapid growth in revenue scale. (1) Copper processing plate: the company's main income in the first half of the year was 45.588 billion yuan, year-on-year + 33.57%, copper and copper alloy output 846300 tons, year-on-year + 12.27%, sales volume 749900 tons, year-on-year + 19.56%, corresponding to copper processing unit price 60800 yuan. The company's production and marketing scale has further improved, driving the company's revenue to increase in the first half of the year. (2) NdFeB plate: the main business income of rare earth magnetic materials is 621 million yuan, which is + 44.16% compared with the same period last year. The main driver of high revenue growth is the rising price of NdFeB. Take 40SH as an example, the average price of H1 in 22 years is + 28.24% compared with the same period last year.
The company's copper products used in the field of new energy are growing rapidly, the production capacity of new energy electromagnetic flat line is promoted as scheduled, and 800V high voltage flat line has been shipped in small quantities. During the reporting period, the company sold 78700 tons of copper products used in the new energy field, accounting for 10.49% of the sales of copper processed products. Among them, copper products used in new energy vehicles sold about 49700 tons, + 460% year-on-year; copper products used in photovoltaic and wind power sold 29000 tons, + 68% year-on-year.
The production capacity of the company's new energy electromagnetic flat line has been increased to 15,000 tons per year, and it is expected that the production capacity will be further increased to 20,000 tons by the end of this year. The company realizes the small batch supply of electromagnetic flat wire of 800V high voltage platform, and has the technical leading advantage in high PDIV, ultra-long corona resistance and ultra-long oil resistance, and is expected to seize the market of high voltage flat wire in the future.
It is estimated that the company's high-performance NdFeB production capacity will reach 13000 tons in 24 years, and its product profitability ranks first in the industry. The company has laid out NdFeB materials for 21 years, with complete brands and mature technology. the company currently has a production capacity of 5000 tons, mainly in the fields of wind power generation, new energy vehicles, industrial motors, consumer electronics and medical devices. as the company's high gross margin products will be put into production in 2023 and 2024 Baotou Phase I, Phase II high-performance NdFeB permanent magnet material is expected to produce a total of 13000 tons. The profitability of the company's NdFeB permanent magnet products ranks first in the industry. The company's gross profit margin of NdFeB magnetic materials remained at 21-25% from 2018 to 2021, compared with that of Jinli permanent magnet, the leader of NdFeB permanent magnet materials, at the same level (21-24%). The unit price of NdFeB magnetic materials in 21 years is 340,000 yuan / ton. close to the unit price of 350,000 yuan / ton of Jinli permanent magnet in the same period.
The copper processing capacity of the company's Ningbo base has gradually fallen to the ground, and it is estimated that the company's copper processing capacity will reach 2.39 million tons by 24 years.
The Ningbo base hot-rolled copper strip project with an annual output of 80,000 tons was put into production in the first quarter of 2022, and the high-strength and high-conductivity copper alloy bar and wire project with an annual capacity of 50,000 tons was put into production in July 2022. In 2022, the company's copper processing capacity is expected to expand to about 2 million tons, and the production capacity of 120000 tons of landed copper alloy strip is expected to be completed and put into production in 2024, plus 150000 tons of newly raised projects and the release of all completed capacity. It is estimated that the company's copper processing capacity will reach 2.39 million tons by 2025. From 2020 to 2025, the company's copper processing capacity GAGR=12.27%, continues to expand production, raising the future copper processing production and sales expectations.
Investment advice: the company's capacity increment and quality improvement, with copper processing (including flat lines) and high-performance NdFeB new production capacity put into production, it is predicted that the company's 22-24 revenue will be 1015.14 yuan, 1080.73 yuan and 111.44 billion yuan respectively; the return net profit will be 9.60,11.91 yuan and 1.31 billion yuan respectively; corresponding to 22-24 years PE12.51, 10.08,9.17 times, the company will maintain its "buy" rating.
Risk hint: copper processing output is not as expected; flat wire output is not as expected; competition in NdFeB industry is intensified.