According to the company's three-quarter report for 2022, the revenue in the first three quarters was 820 million yuan, an increase of 126.7% over the same period last year; the return profit was 35 million yuan, up 301.0% from the same period last year; and the non-return profit was 29 million yuan, an increase of 219.5% over the same period last year.

The company's Q3 profits are under pressure. Q3 realized revenue of 240 million yuan in a single quarter, an increase of 93% over the same period last year, a decrease of 2% compared with the same period last year; the return profit was 5 million yuan, an increase of about 28% over the previous quarter; and the non-return profit was 4 million yuan, a substantial increase over the previous month. Overall, Q3 single-quarter earnings are under pressure.

The power battery recycling industry is expected to explode. We believe that the battery recycling industry where the company is located has a lot of room for development in the future and is about to usher in an explosive period one after another. The company's Gejiu Shengbi and has the "waste lithium-ion battery materials comprehensive recycling → precursor / lithium carbonate → cathode materials" complete industry chain technology. And the old Sheng Bihe has been identified as a state-level special new "Little Giant" enterprise, with strong competitiveness.

The company is actively expanding its production capacity. The company will issue stock financing of nearly 200 million yuan to specific objects through a summary procedure, and will fully invest in the first phase of the lithium battery cathode material production base construction project. In the future, as the company's battery recovery capacity is gradually put into production, it is expected to gradually contribute to the performance.

Profit forecast and investment rating: we expect the company's revenue from 2022 to 2024 to be 11.9,21.6 and 3.79 billion yuan respectively, an increase of 106%, 81% and 76% over the same period last year, and the net profit of returning home is 0.59,2.16 and 457 million yuan respectively. The market capitalization as of October 28 corresponds to 70 and 19 times PE for 22-23 years, maintaining the "buy" rating.

Risk factors: industry demand is lower than expected risk; raw material price fluctuation risk; risk of new technology development.