Event: Wanshun Xincai issued a forecast for the third quarter of 2022. The net profit of 22Q1-3 was 1.60-165 million yuan, up 618.41% and 849.33%, up 618.41% and 849.33%, respectively, up 618.41% and 849.33%, respectively.
Among them, the net profit of 2022Q3 in the current quarter was 0.39-44 million yuan, an increase of 868.40% 991.50% over the same period last year, and the net profit of deducting non-return was 0.39-44 million yuan, an increase of 1589.15% and 1803.21% over the same period last year.
Aluminum foil business continues to expand, 22Q3 performance continues to be beautiful 22Q1-3 company around the annual business plan actively carry out various work, since this year, aluminum foil downstream market demand is strong, the company Sun company Anhui Zhongji battery aluminum foil capacity continues to release, driving aluminum processing business profitability significantly improved, the company 22Q3 performance continues to be beautiful, 22Q1-3 performance growth rate is eye-catching.
In terms of business, 2022H1's income from aluminum processing, paper packaging materials and functional films was 17.86,2.02 and 11 million yuan respectively, an increase of 19.66%,-5.08% and-29.28% respectively over the same period last year.
Among them, the income of aluminum processing business continues to grow, accounting for a further increase. Company Sun Company Anhui Zhongji Phase I annual production of 40,000 tons of high-precision electronic aluminum foil production project battery aluminum foil production capacity since the end of the 21st year, the production capacity continues to release month by month climbing, driving performance to achieve high growth. 22H1 aluminum foil business sales of 49100 tons, battery aluminum foil downstream customers including Ningde Times, Polyfluorodo, Xin Wanda and other well-known battery manufacturers. The release of battery aluminum foil capacity boosted the company's profitability. The gross profit margin of 22H1's aluminum processing business increased by 8.25pct to 18.32% year-on-year, driving the company's overall gross profit margin to 13.33% year-on-year.
Aluminum processing industry continues to layout, production capacity is expected to be gradually released
The pace of capacity expansion in various categories of the company's aluminum processing business is clear: 1) Aluminum foil: by the end of August 2022, Jiangsu Zhongji has an existing production capacity of 83000 tons, mainly packaging aluminum foil; Anhui Zhongji's first phase of the annual production of 40,000 tons of high-precision electronic aluminum foil production project has been put into production at the end of the 21st, the production capacity continues to climb. Anhui Zhongji Phase II production project with an annual output of 32000 tons of high-precision electronic aluminum foil has carried out basic installation construction, and the production capacity is expected to be released in 23H1; Anhui Zhongji Phase III 100000 ton power and energy storage battery foil production project has started equipment selection, technical docking work and is expected to be put into production in 24H2. 2) Aluminum strip: the existing production capacity of Anhui Zhongji and Jiangsu Huafeng base is 110000 tons. Sichuan Wanshun Zhongji annual production capacity of 130000 tons of high-precision aluminum strip project has entered the equipment installation stage, part of the production capacity has started trial operation, and the construction is expected to be completed in mid-23. 3) carbon-coated plate: in order to improve the layout of the aluminum processing industry chain, Jiangsu China cut into the carbon-coated foil industry based on the acquisition of 51% stake in Shenzhen Yuqiang in April 22, and set up Jiangsu Yuqiang to build a project with an annual production capacity of 50,000 tons of new energy coated carbon foil, which is expected to be partially put into operation at the beginning of 23Q2. At the same time, Wanshun Xinfu has begun to build a battery foil slitting project, 10 slitting machines are planned to be launched in stages, and 2 slitting machines have been put into trial operation. After the completion of the project, it will form an annual production capacity of 15000 tons of battery foil slitting.
Investment suggestion: as the leader of middle and high-end aluminum foil manufacturing, the company actively layout the battery aluminum foil business, and successfully entered the Ningde era and other high-quality customer supply chain system, future growth is expected. We estimate that the operating income of Wanshun Xincai from 2022 to 2024 will be 68.42,72.33 and 8.122 billion yuan, up 25.83%, 5.72% and 12.29% over the same period last year, and the net profit will be 2.53,3.60 and 452 million yuan, up 675.33%, 42.45% and 25.62% over the same period last year, corresponding to the PE of 28.7x, 20.2x and 16.1x, maintaining the investment rating of Buy-A.
Risk tips: power and storage battery demand is lower than expected risk; industry competition intensifies risk; raw material price fluctuation risk; project progress is not as expected risk.