Event: according to the company's semi-annual report, H1 realized a net profit of 121 million yuan in 2022, an increase of 563% over the same period last year, and 116 million yuan after deducting it, an increase of 726% over the same period last year. Of this total, 22Q2 realized a net profit of 67 million yuan, an increase of 498.73% over the same period last year and 23.2% month-on-month growth.
The amount of battery aluminum foil is the main driver of the company's profit growth. The aluminum processing business, as the company's main profit segment, is driven by strong demand downstream, with the rapid growth of sales revenue and gross profit margin, and the release of the production capacity of the first phase of Anhui Zhongji high-precision electronic aluminum foil production project of Sun Company. drive the company's business performance to improve significantly:
(1) in the first half of 2022, the operating income of the company's aluminum processing business segment was 1.786 billion yuan, an increase of 19.66% over the same period last year, and the gross profit was 327 million yuan, an increase of 118% over the same period last year. The amount of battery aluminum foil promoted the company's profitability.
(2) the sales volume of aluminum foil in aluminum processing business reached 49100 tons, including 36600 tons in Jiangsu Zhongji production base and 12500 tons in Anhui Zhongji production base. Relying on the rich experience in the production of double zero aluminum foil, the company climbed the slope quickly after the project was put into production.
(3) the downstream customers of battery aluminum foil achieve a breakthrough in certification. At present, direct supply customers include many well-known battery manufacturers, such as Ningde era, Polyfluorodo, Xinwanda and so on.
(4) pay close attention to the progress of the construction project. Anhui Zhongji Phase II production project with an annual output of 32000 tons of high-precision electronic aluminum foil is under construction, and the equipment has been ordered to be installed after it is in place; the planning and construction procedures and equipment selection of the third phase of 100000 tons of power and energy storage battery foil project have been started.
The acquisition of Shenzhen Yuqiang, quickly cut into the carbon foil industry, for the company to contribute a new profit growth point. Carbon-coated aluminum foil is a uniform and fine coating of nano-conductive graphite and carbon-coated particles on the aluminum foil, which can significantly improve the energy density and cycle performance of the battery. Carbon coating can significantly increase the net profit per ton of battery aluminum foil enterprises, and this acquisition enables the company to form a vertical industrial chain of "aluminum plate → aluminum foil → coated carbon foil".
At the same time, the company uses its scarce light foil resources to support Shenzhen Yuqiang's expansion of 50,000 tons of carbon foil project.
According to the feasibility analysis report, the project is divided into two phases, with a construction cycle of 18 months each. After reaching production, the project will achieve a revenue of 3 billion yuan and a total profit and tax of 270 million yuan.
The leader in the research and development of PET copper foil is expected to be the first batch of suppliers to supply the battery factory in bulk. Relying on the production experience and equipment advantages accumulated in the membrane business, the company has developed carrier copper film samples for battery negative electrodes in the third quarter of last year and sent them to downstream battery enterprises for verification. The company's PET copper foil can reduce battery weight, improve energy density and safety. With the gradual conquest of mass production technology in the industry, the company is expected to become the first batch of suppliers for battery factories.
The high resistance diaphragm explores the photovoltaic backplane to form a domestic substitute. With the rapid development of photovoltaic, electronic and display technology, it has higher requirements for the barrier film in its own packaging process. In particular, the photovoltaic field of high resistance diaphragm demand, the amount of value is large, the profit space is very considerable. The company carries on domestic alternative research and development based on new technology and new products, focusing on expanding the high resistance film for photovoltaic backplane, and has received small batch orders from customers.
Maintain the "highly recommended" investment rating. As the manufacturing leader of high-end aluminum foil, the company looks forward to the layout of high-precision imported equipment in the industry, and achieves rapid climbing of battery aluminum foil shipments in the first half of the year, demonstrating the company's strength.
Superimposed PET copper foil, coated carbon foil, functional thin film exploration photovoltaic backplane and other points of view, the company's future development can be expected. It is estimated that the net profit from 2022 to 2024 will be 256000,000 yuan, and the corresponding price-to-earnings ratio will be 28.1, 20.4 and 15.9 times, respectively.
Risk tips: the installed capacity of power and energy storage batteries is less than expected, aluminum foil processing fees fall sharply, raw material prices fluctuate rapidly in the short term, and consumer demand for aluminum foil decreases.