Main points of investment
The acquisition of 40 per cent equity (51 per cent voting rights) in Yunqi Valley, a sintering equipment manufacturer, and the equipment self-financing rate increased to 80 per cent. Baili Lidian, a wholly-owned subsidiary of the company, signed an equity transfer agreement with Sun Weiming, a shareholder of Suzhou Yunqi Valley Intelligent equipment Co., Ltd., and proposed to acquire 40 per cent of Yunqi Valley held by Sun Weiming for a cash consideration of 16 million yuan. the two sides agreed that Baili Lidian had 51 per cent voting rights and consolidated its financial statements.
(2) performance commitment: the cumulative net profit of Yunqi Valley Company in 2022 and 2023 is not less than 21 million yuan.
(3) Yunqi Valley was established in 2017, and its main products are sintering equipment for positive and negative materials of lithium batteries or electrolyte materials for solid-state batteries. Sintering equipment accounts for about 30-40% of the investment in the whole line of lithium battery materials. Superimposed company has achieved more than 40% self-supporting proportion of core equipment, the acquisition of power company equipment self-supply rate increased to 80%.
Lithium power materials equipment + production line contractors, lithium power revenue accounted for 88%, lithium power orders increased by 33% year-on-year, the company's layout of new energy business in 2017, to provide lithium materials enterprises with intelligent factory solutions and lithium battery proprietary equipment manufacturing. At present, it is the only listed company for the whole line supply of lithium materials. In the first half of 2022, the total contract income of the lithium power sector reached 830 million yuan, an increase of 19.4 percent over the same period last year, accounting for 88 percent of the total revenue in the first half of the year. In the first half of the year, the company signed a total of 2.14 billion yuan in new contracts, including 1.99 billion yuan in lithium plate contracts (accounting for 93%, up 33% from the same period last year).
The investment in the three main materials production lines of lithium electricity will reach 52% in the next three years, and the domestic single-point equipment merchants, chemical industry, industry alliance and materials go to sea to promote the expansion of lithium materials. In 2022, the investment in the production line of lithium cathode, negative electrode and electrolyte is 56.1 billion yuan, which is expected to reach 198.9 billion yuan in 2025, and the CAGR in three years is about 52%. Lithium materials market is mostly single-point equipment manufacturers, the whole line delivery manufacturers are very competitive.
Epitaxial mergers and acquisitions promote the trend of equipment self-supply rate, and it is expected to usher in the performance inflection point. In 2021, the company's lithium material equipment self-supply rate will reach 40%. In 2022, it will be raised to 80% through epitaxial mergers and acquisitions, and there is room for further improvement. In August 2022, the company acquired 60% stake in Wuxi Baishi (supplier of external circulation line of lithium cathode material industrial kiln) for 1.2 million yuan in cash and completed the industrial and commercial change; the company plans to acquire 60% stake in Suzhou Bioran. The introduction of ceramic roller technology (mainly used for positive material crushing equipment), the acquisition progress is gradually advanced. The improvement of the self-supply rate of the company's equipment will help to strengthen the competitive barriers to the whole line supply of lithium materials and enhance profitability.
Strong endogenous R & D strength, high-quality and stable customer resources, to maintain a leading position in the field of lithium materials and equipment, wholly-owned subsidiary Baili Lithium (formerly Nanda Zijin) has rich experience in equipment and whole-line service in lithium positive / negative / precursor production lines. More than 500 production lines have been built all over the country. With its leading engineering design capability and service concept, the company has been widely recognized by high-quality customers such as Dangsheng Technology, Beitri, Anhui Haichuang, Guoxuan Hi-Tech, New Lithium, BASF Shanshan, Chengdu Bamo, Ningde Times and so on. And continue to open up new customers.
Profit forecast and valuation
It is estimated that the revenue from 2022 to 2024 will be RMB 2.93 billion, an increase of 182%, 63% and 30% respectively over the same period last year, and the net profit from the home will be RMB 2.2 million, an increase of 658%, an increase of 658%, and a corresponding PE of 2717, 12X, respectively, maintaining the "buy" rating.
The risk indicates the pledge risk of major shareholders; the prosperity of the lithium battery market is not as good as expected; the acquisition integration is not as expected.