Main points of investment:
Event: on the evening of September 6, the company issued a "pre-plan for non-public offering of A shares", which intends to raise funds from no more than 35 specific targets by means of non-public offering, with a total amount expected to be no more than 2.28 billion yuan, of which Angang Group, the actual controller of the company, subscribed for 300 million yuan. The increased funds will mainly be used for vanadium pentoxide upgrading and upgrading (143 million yuan), industrial preparation and research and development of vanadium battery electrolyte (55 million yuan) and 60,000 tons / year molten salt chlorination titanium dioxide project (1.193 billion yuan). At the same time, the company issued the shareholder return Plan for the next three years (2022-2024), promising that the cumulative profits distributed in cash in 22-24 years would not be less than 30% of the average annual distributable profits realized in those three years.
The upgrading project will increase the production capacity of high purity vanadium pentoxide and provide a good foundation for the research and development of vanadium battery electrolyte. Different from the traditional iron and steel field, high-purity vanadium pentoxide is mainly used in energy storage, aerospace, chemical and other non-steel fields. At present, the demand for energy storage is increasing rapidly, and it is expected that the demand for high-purity vanadium pentoxide will grow at a high speed. Under this background, the company launched the vanadium pentoxide upgrading and upgrading project, and the construction period is expected to take 14 months, which will form a production capacity of 1000 tons / year of high purity vanadium pentoxide without increasing the total output of vanadium pentoxide in Panzhihua Vanadium Plant. It is expected that after the completion of the project, it will not only improve the added value of the company's vanadium products, but also lay a good foundation for the development of vanadium battery electrolyte field.
In the field of vanadium battery energy storage, increase the research and development investment of vanadium battery electrolyte. At present, vanadium battery has the problems of large investment and low energy density, which limits the commercial application of vanadium battery. Through this investment project, the company will increase the research and development of all-vanadium flow battery energy storage technology to form a complete industry chain of "efficient vanadium extraction-deep processing of vanadium products-vanadium battery electrolyte". After the completion of the project, it is expected that it will effectively improve the energy efficiency of the electrolyte, reduce the cost and improve the life cycle income. At that time, the company's electrolyte technology will reach the domestic leading level and further enhance its competitiveness in the field of vanadium battery electrolyte.
The production capacity of titanium dioxide by molten salt chlorination process has increased steadily with the construction of 60,000 tons / year titanium dioxide project. One of the fundraising projects is the molten salt titanium chloride project, which is expected to take 27 months to build. After completion, the production capacity of titanium dioxide chloride of the company will increase to 75,000 tons / year, an increase of 400% over the current 15,000 tons / year, and the total capacity of titanium dioxide will increase to 295,000 tons / year, an increase of 25.53% over the current 235,000 tons / year.
Investment analysis opinion: this time, the company will focus on the field of vanadium battery energy storage, not only improving the preparation capacity of high-purity vanadium pentoxide at the raw material end, but also increasing R & D investment in the electrolyte link. it is expected that it will effectively enhance the company's competitiveness in the field of vanadium battery electrolyte, which is beneficial for the company to expand into the field of vanadium battery electrolyte. We keep the company's original profit forecast unchanged, the EPS for 22-24 is 0.28,0.31 and 0.33 respectively, and the current stock price corresponds to 20,18 and 17 times the PE for 22-24. Maintain a "buy" rating.
Risk hint: vanadium battery energy storage demand growth is not as expected; the company's project construction and production schedule is not as expected.
