Event
No.1 Science and Technology issued an announcement: the company's 2022H1 realized revenue of about 1.4 billion yuan / yoy+47%, and realized a net profit of about 223 million yuan / yoy+17%.
Main points of investment
Sustained high income growth and resilient performance
The company's 2022Q2 realized income of about 710 million yuan / yoy+35%/QoQ+1%, realized net profit of about 117 million yuan / yoy+9%/QoQ+10%, realized net profit of 130 million yuan deducted from non-parent net profit / yoy-3%, was flat quarter on quarter. In terms of profitability, the company's 2022Q2 gross profit margin is 23% and net profit margin is 16.5%. The company's 2022H1 capacity utilization rate reached 121%, copper foil production reached 15000 tons, the company is expected to ship about 14000 tons in the first half of the year, corresponding to a profit of about 15,000 yuan per ton, maintaining a high level. The company's 2022H1 R & D expenditure is 54 million yuan, maintaining a high intensity of R & D investment.
The company has a deep understanding of copper foil equipment and process, from dissolving copper solution to the long-term layout of the foil process, with the ability of core equipment design and optimization. The company has a deep understanding of domestic equipment, and its per ton investment intensity is at a low level in the industry.
Capital expenditure continues to increase, cutting into the field of composite copper foil
As of 2022Q2 company currency funds + transactional financial assets is 2.253 billion yuan, short-term loans of 227 million yuan, the company is relatively abundant in paper cash. The company's 2022H1 book fixed assets are 499 million yuan, the project under construction is 141 million yuan, the company's 2022Q2 capital expenditure is 153 million yuan, and the capacity expansion is increased. The company has a production capacity of 29500 tons and is under construction of 26000 tons. It is estimated that the production capacity of 2023H1 will reach 55500 tons. In addition, the company plans to build a new production capacity of 24000 tons in Yancheng, when the company's production capacity will reach about 80,000 tons.
In addition, the company cut into the field of composite copper foil, composite copper foil has significant advantages in theoretical cost and comprehensive performance, which is expected to increase battery energy density, reduce weight and improve battery cycle life. The company's Wuhan subsidiary plans to have a registered capital of 300 million yuan and plans to build an annual production line with an annual output of 5 million square meters in advance to verify and optimize the process, technology and equipment and promote its market application.
Ploughing the copper foil track, the competitiveness is prominent.
The company deeply ploughed the research and development and production of electrolytic copper foil, accumulated a wealth of practical experience, gradually formed a number of core technologies related to key processes in the industry, and participated in a number of electrolytic copper foil related standard-setting work. As of June 30, 2022, the company has 97 patents and 2 software copyrights. A number of core technologies designed and modified by the company around additives and production equipment can effectively help the company's product technology upgrade and scale expansion. The company's customers are of high quality, including Ningde era and other industry leaders.
In 2021, China's lithium copper foil shipments of 280,000 tons / yoy+123%, industry continued to grow at a high speed, and the demand is strong. The company ploughs the copper foil track, the long-term demand can be expected, the company has a deep understanding of the products, and is expected to benefit in the long run. In addition, the company has strongly cut into the field of composite copper foil, which is expected to bring new growth points.
Profit forecast
It is estimated that in 2024, the net profit of the company will be 100 million yuan in 5-7-10, and the eps will be 5.05 billion yuan, and the corresponding PE will be 7.23 yuan, 9.85 yuan, respectively, which is 17-12-9. Based on the company's high-quality track and constantly expanding the capacity boundary, we are optimistic about the company's medium-and long-term development opportunities and give it a "buy" rating.
Risk hint
Risk of policy fluctuation; lower-than-expected downstream demand; lower-than-expected product prices; risk of deterioration of the competition pattern; capacity expansion and digestion is not as expected.