2022Q3 achieved a performance of 356 million yuan, + 105% compared with the same period last year. The company's 2022Q3 achieved revenue of 5.062 billion yuan, year-on-year + 200%, month-on-month + 19%; net profit 356 million yuan, + 105%, month-on-month-22%. In the first three quarters of 2022, the company achieved revenue of 12.696 billion yuan, + 180% compared with the same period last year, and net profit of 1.114 billion yuan, + 129% of the same period last year. We expect the company's 2022Q3 cathode sales to reach 1.7-18000 tons, an increase of more than 70% year-on-year and nearly 30% month-on-month. In terms of profitability, the company's 2022Q3 net profit per ton exceeded 19000 yuan, a month-on-month decline of nearly 12,000 yuan / ton. The month-on-month decline in profitability is mainly due to the relatively stable price of Q3 lithium carbonate and the decrease of inventory income.
The company has been ploughing Sanyuan Zhengji for many years, and its layout seeks diversification. Founded in 2002, the company focused on lithium cobalt positive electrode at the beginning, and cut into the field of ternary cathode in 2011. In the first three quarters of 2022, the company's market share ranked fourth in China, with a market share of about 10%. The company's current products include lithium cobalt oxide, medium and high nickel ternary cathode, high nickel ternary, nodular nickel and lithium iron phosphate to be mass produced. The company's management is mostly technical background, R & D investment in the industry-leading, products in the first lap efficiency, high voltage performance in the forefront of the industry. The company's main customers include Ningde Times, Xin Wanda, Tafel, etc., and actively cooperate with Toyota, Panasonic, Samsung SDI and other overseas customers to promote the diversification of customer structure.
The company relies on Minmetals Group, the purchase of raw materials can stabilize the price and supply, integrated layout to optimize the cost. The actual control of the company is Minmetals Group, which holds a 43.66% stake in the company. Minmetals Group has a wide range of metal minerals, metallurgical construction and other aspects of the layout, the company and its China Metallurgical New Energy, Minmetals Salt Lake, Xinye Materials, Minmetals Nonferrous and other related companies on ternary precursors, lithium carbonate, nickel and manganese related raw materials have extensive cooperation.
Related transactions can ensure the supply of raw materials and provide discounts to optimize the company's production costs. At the same time, the company's Jinchi material precursor technology accumulation is deep, since the prenatal drive body thickened per ton profit. In addition, the company also actively promotes the continuous optimization of manual manufacturing costs in the form of equipment localization, large-scale and automation.
Risk tips: electric vehicle sales are not as expected; new product development is not as expected; capacity construction is not as expected; raw material price fluctuations are higher than expected.
Investment advice: we believe that the company is a leader in the three-yuan positive industry, customer development continues to promote, integrated layout to optimize the cost structure. Combining absolute valuation and relative valuation, we believe that the reasonable value of the company's stock is between 16 and 18 yuan, with a premium of 4% to 17% over the company's current share price. We expect the company to achieve a net profit of 16.15x20.66x2599 million in 2022-2024, an increase of 13128x26% over the same period last year; earnings per share are 1.84x107x1.35 respectively, and PE is twice as much as 18-14-12, giving the "overweight" rating for the first time.