Event: the company disclosed its semi-annual report of 2022, with revenue of 1.979 billion yuan in the first half of 2022, + 2.77% year-on-year, net profit of 192 million yuan, + 12.64%, and non-return net profit of 170 million yuan, + 2.63% over the same period last year.
The increase in volume and price helps the company's performance growth, and the optimization of lithium copper foil product structure boosts profitability. 1) on the whole, both volume and price increased slightly in the first half of the year. Quantity: in the first half of 2022, the company produced lithium copper foil and PCB copper foil totaling 21065 tons, + 2.03% compared with the same period last year; price: according to the company's disclosed data, the average price of the company's copper foil products reached 86,000 yuan / ton in the first half of 2022, + 0.9% compared with the same period last year; the small increase in production, sales and prices is the main reason for the company's performance growth. 2) structurally, lithium copper foil is the core element of the company's profit growth. In the first half of 2022, the company's PCB copper foil / lithium copper foil respectively realized revenue of 1,350.681m yuan, of which lithium copper foil accounted for an increase of 5.91pct to 37.5% compared with the same period last year; gross profit was 149pm RMB,-30.2% respectively, compared with the same period last year; and the gross profit ratio of lithium copper foil increased to 50%, which was the main factor for positive year-on-year growth in the first half.
3) the increase in the proportion of high-end copper foil products of 6 μ m and below will enhance the profitability of lithium copper foil. In the first half of 2022, the company's high-end copper foil products accounted for 77% of the total output of lithium copper foil in the first half of 2022, accounting for only 38% in the same period of 2021, and the processing fee of copper foil products of 6 μ m and below was significantly higher than that of 8 μ m (the average processing fee of 8, 6 and 4.5 μ m copper foil in the first half of 2022 was 3.73,4.72 and 80400 yuan / ton, respectively), so the gross profit margin of lithium copper foil increased to 21.20% year on year, and the profitability was enhanced.
The magnificent demeanor of the industry has given rise to strong demand, the company has expanded production by 35000 tons, and the total production capacity is planned to reach 80,000 tons / year. 1) New energy vehicles + energy storage and other led to strong demand: new energy vehicles, energy storage and other terminal industries ushered in explosive growth, of which the installed capacity of power batteries exceeded 100GWh in the first half of 2022, an increase of 116% over the same period last year, which in turn led to a strong demand for lithium copper foil. 2) with scale expansion and structural optimization, the company is expected to usher in a period of high growth. Under the background of strong demand in the industry, the company plans to build 25000 tons of lithium copper foil + 10,000 tons of PCB copper foil production capacity, is expected to put into production, the company's total production capacity of 45000 tons of lithium copper foil + 35000 tons of PCB copper foil, and the new lithium copper foil to 6 μ m and below products, the product structure is further optimized, the company's performance is expected to gradually usher in a high growth period.
Profit forecast and investment advice: taking into account the company's production capacity expansion and product structure optimization, it is estimated that the 2022-2024 net profit will be 4.8pm and 740m, giving the company an "overweight" rating for the first time.
Risk tips: downstream demand is lower than expected, product prices fluctuate, and projects under construction are not as expected.