Event description
On the evening of October 13, the company announced that it signed an "Investment Cooperation Agreement" with China Fluorotaihua to establish a joint venture in Leshan City, Sichuan Province, to establish Zhongfu Shenghua New Energy Co., Ltd.
China fluorotaihua subscribed 792 million yuan, accounting for 66% of the capital contribution, while Wintek New Materials subscribed 408 million yuan, accounting for 34% of the capital contribution. The joint venture company plans to invest 100,000 tons / year of liquid lithium hexafluorophosphate and its supporting equipment, with a total investment of about 2 billion yuan.
The production capacity of 100000 tons of liquid hexafluorine has been increased, and the integrated layout of electrolyte has been further developed. The company is a leading company of electrolyte solvents in China, covering all solvent products, including dimethyl carbonate, diethyl carbonate, methyl ethyl carbonate, vinyl carbonate and so on. Starting from the solvent, the company extends the electrolyte industry chain downstream. At present, the planned and under construction of electrolyte production capacity reaches 700000 tons. In order to further enhance the cost control ability and product competitiveness of the company's electrolyte, the company deepens the integrated layout and further extends the industrial chain to the electrolyte core raw material lithium hexafluorophosphate. The company has a production capacity of 2000 tons of solid lithium hexafluorophosphate and 100000 tons of liquid lithium hexafluorophosphate under construction.
This time, the company signed an "Investment Cooperation Agreement" with China Fluorotaihua to establish a joint venture company to invest in the construction of 100,000 tons of liquid lithium hexafluorophosphate, which further enhanced the production capacity of lithium hexafluorophosphate and expanded the company's self-sufficiency in raw materials. the integrated layout of the company's electrolyte goes further.
The cost of liquid hexafluorine is lower than that of solid hexafluorine, and the new production capacity further optimizes the cost of electrolyte lithium hexafluorophosphate is divided into solid lithium hexafluorophosphate and liquid lithium hexafluorophosphate. Solid lithium hexafluorophosphate is suitable for long-distance transportation, so most of the solid lithium hexafluorophosphate in circulation on the market. Compared with solid hexafluorine, liquid hexafluorine has a significantly lower per ton investment, so its unit cost is correspondingly lower than that of solid hexafluorine. According to the EIA report, the unit cost of liquid hexafluorine is 8% lower than that of solid hexafluorine, but because of its large volume and inconvenient transportation, liquid hexafluorine is generally used for downstream electrolyte projects. The company added 100000 tons of liquid lithium hexafluorophosphate production capacity, the commissioning of the project will help the company to further reduce electrolyte costs and enhance the core competitiveness of products.
Investment suggestion
The company is a leading electrolyte solvent enterprise, horizontally derived to the lithium hexafluorophosphate industry, vertically extending the electrolyte industry downstream, and the integrated layout is gradually taking shape. Considering the increasingly rich lithium product matrix and the fast pace of capacity release, the company is expected to achieve operating income of 76.81,97.25,21.248 billion yuan and return net profit of 13.66,18.80,2.381 billion yuan respectively from 2022 to 2024, and the corresponding PE is 15,11 and 9 times respectively. Maintain the company's "buy" rating.
Risk hint
(1) the rise in the price of raw materials leads to an increase in costs.
(2) the progress of customer verification is not as expected