The company's 2022Q3 single-quarter results increased nine times compared with the same period last year. In 2022, the company's Q1-Q3 achieved a total operating income of 4.281 billion yuan, an increase of 5.08% over the same period last year, a net profit of 163 million yuan, an increase of 631.68% over the same period last year, and a net profit of 158 million yuan, an increase of 867.28% over the same period last year. The company's 2022Q3 achieved revenue of 1.499 billion yuan (year-on-year + 23.72%, month-on-month + 3.75%), realized net profit of 42 million yuan (year-on-year + 941.16%, month-on-month-36.94%), and deducted non-return net profit of 42 million yuan (year-on-year + 1714.65%, month-on-month-35.38%).
The company has been laying out the battery foil project since 2018. In 2020, the company raised funds by issuing convertible bonds to build the "annual production project of 72000 tons of high-precision electronic aluminum foil", which is divided into 40,000 tons in the first phase and 32000 tons in the second phase, of which the first phase began construction in 2018 and started production in December 2021, and the second phase of the project has been started at the same time. In 2021, the company invested 1.192 billion yuan to build a new "annual output of 130000 tons of high-precision aluminum strip project", including 80,000 tons of lithium battery cathode aluminum foil billet and 50,000 tons of double zero aluminum foil billet coil. In July this year, the company invested in the construction of a "carbon foil project with an annual output of 50,000 tons of new energy" with subsidiary Shenzhen Yuqiang as the main investment. In August, the company announced a prospectus for issuing shares to specific targets and listing on the gem. The total amount of funds to be raised does not exceed 1.7 billion yuan, of which 1.2 billion yuan is invested in the "annual production of 100000 tons of power and energy storage battery foil project" (the total investment of the project is 2.082 billion yuan). The project construction period is 2 years.
The company's 2022Q1-Q3 achieved sales of 75600 tons of aluminum foil. In the aluminum processing business sector, the company achieved a total sales volume of 123500 tons in 2021, including 2886 tons of battery aluminum foil and 23000 tons of battery aluminum foil blanks, and 75600 tons of 2022Q1-Q3 aluminum foil products, including 20800 tons of Anhui Zhongji base and 54800 tons of Jiangsu Zhongji base. The company's downstream customers of battery aluminum foil include Ningde Times, Polyfluoro, Xin Wanda and many other well-known battery manufacturers.
Risk hints: the risk that downstream energy storage and power battery demand is lower than expected; the increase in the number of enterprises entering the industry and the risk of overcapacity leading to a reduction in battery aluminum foil processing fees and reduced profitability; the risk that the company's product production and sales are not as expected.
Investment advice: cover for the first time and give a "buy" rating.
It is estimated that the company's revenue from 2022-2024 will be 59.90 Universe 66.66Universe 7.887 billion yuan, a year-on-year growth rate of 10.17%, 11.28% and 18.32%, and the net profit of its parent will be 262Universe 369 Universe 519 million, with a year-on-year growth rate of 695.73%, 41.06% and 40.56%, respectively. The diluted EPS will be 0.36Universe 0.51, with the current share price corresponding to PE 25.1517.83 12.68X. In view of the rapid expansion of production capacity of the company as one of the major battery aluminum foil manufacturers in China, the market share of battery aluminum foil and coated carbon foil is expected to further increase in the future. At the same time, it has been laid out in the field of composite copper foil and covered for the first time. Give a "buy" rating.