Events:
According to the company's semi-annual report for 2022, 2022H1 achieved a revenue of 1.221 billion yuan, an increase of 439.2% over the same period last year; its net profit was 475 million yuan, an increase of 1018.3% over the same period last year; its revenue was 868 million yuan, an increase of 861.4% over the same period last year, an increase of 146.0% over the previous year; and its net profit was 343 million yuan, an increase of 1430.4% and 160.1%.
Comments:
Both volume and price rose, and the performance achieved high growth in the first half of the year. The revenue of 2022H1's lithium products reached 1.06 billion yuan, an increase of 961.55% over the same period last year, with a gross profit margin of 94.47%, an increase of 53.25pct over the same period last year.
Volume: in the first half of the year, the company sold 6840.6 tons of lithium concentrate and sold 198.27 tons of lithium salt (industrial grade), of which Q1 sold 2113 tons of lithium concentrate and Q2 sold 4727.4 tons. Price: the price of lithium salt rose sharply in the first half of the year. According to SMM data, the average price of industrial-grade lithium carbonate in 2022H1 was 4254,000 yuan / ton, up 76.2% from the end of 2021.
The inventory is sufficient, and the output of lithium concentrate for the whole year is expected to be 9500 tons. As of July 1, the company has lithium concentrate inventory of 3810.66 tons and lithium salt inventory of 494.449 tons. Sufficient inventory provides a strong guarantee for the release of results in the second half of the year, and the annual lithium concentrate production is expected to reach 9500 tons.
The construction of the second phase of Zabuye has progressed steadily, and the scale of 30,000-50,000 tons of lithium salt will be formed by the end of 2025. The transfer income and payment amount of mining rights in Zabuye Salt Lake were landed in the first half of the year. The construction of the 12000 ton lithium carbonate production line (9600 tons of electric carbon + 2400 tons of industrial carbon) project in Zabuye Phase II is expected to be accelerated and is expected to be completed by the end of 2023. In the future, the company plans to integrate salt lake resources in the region, continue to carry out new process research and development, and form a scale of 3-5 tons of lithium salt by the end of 2025.
The output of chromium products has been increased and the profitability has been enhanced. The revenue of 2022H1's chromium products reached 155 million yuan, an increase of 25.18% over the same period last year, with a gross profit margin of 71.99%, an increase of 45.02pct over the same period last year.
The sharp increase in gross profit margin was due to higher chromium ore prices in the first half of the year and lower operating costs due to an increase in chromium ore production over the same period last year. Luobusa's ore quality is the best in China, and it is also a high-quality ore all over the world. not only the ratio of chromium to iron is high, but also the contents of impurities such as sulfur, phosphorus and silicon are quite low. at present, the mining right approval scale of Tibet Mining Industry is 150,000 tons / year.
Profit forecast
It is estimated that in 2024, the net profit of 2022Universe 2023Universe will be 1.94 billion yuan, corresponding to EPS 2.01, 2.83 and PE is 23.52, 16.76 and 12.71 times, respectively. Considering that the company is the leader of domestic salt lake, Zabuye Salt Lake resources are very excellent, and the future production capacity is rapidly expanding, the company will be valued 22 times in 2023, and the corresponding target price is 62.3 yuan. Cover for the first time and give a "recommended" rating.
Risk hint
Risks such as lower-than-expected demand and a sharp fall in lithium prices.