Incident: A joint venture with Qicai Chemical to build a 180,000-ton battery-grade Prussian Blue (White) project. The company holds 51% of the company's shares and Anshan Qicai Chemical Co., Ltd. signed an “Investment Cooperation Agreement”. The two parties agreed to jointly invest 500 million yuan to establish Liaoning Meicai New Materials Co., Ltd., and invested 2.5 billion yuan to build the “180,000-ton battery-grade Prussian Blue (White) Project” with the target company as the implementing entity. The company's shareholding ratio was 51%, which dominated.
Relying on unique endowments to lay out Prussian blue sodium electrocathodes horizontally, capacity expansion enhances long-term competitiveness Prussian blue (white) has high energy density, structural stability and cost economy, and commercial application is expected to accelerate under the trend of sodium battery development. The company's addition of Prussian materials has a clear competitive advantage:
1) Technical process guarantees product performance: The company previously invested 14 million yuan to obtain 7% of the shares of Shenzhen Huana New Materials. The latter's talents, technology, and product advantages have significantly deepened sodium electricity, and industrialization progressed smoothly. It is preparing to conduct pilot tests for 1000-ton products. Its Prussian blue cathode process is relatively mature. On the one hand, it has formed a stable and reliable supply relationship with the company, and on the other hand, it helps to enhance the company's technology accumulation along this route. This time, the partner Qicai Chemical has the advantages of industrial Prussian Blue (white) technology, cost and environmental treatment. Its 50-ton pilot production line for Prussian blue cathode materials has already been put into operation, and related products have been tested by some battery manufacturers, which will help the joint venture project progress smoothly.
2) Integrated supply and cost reduction: Sodium cyanide is the core raw material for Prussian cathodes. The subsidiary has created a production capacity of 300,000 tons of Sanzheng to provide strong support for the expansion of cathode materials. The integrated layout is conducive to cost reduction and market expansion.
3) High entry barriers: Cyanide is a hazardous chemical. Its production and preparation require extremely strict special qualifications. The entry and production expansion threshold is high, and there are very few industry participants. The company has scarce production licenses and nearly 20 years of production experience, and is leading the world in production capacity, and has a clear first-mover advantage.
The joint venture project is planned to be constructed in three phases: the first phase of the 10,000 ton plan is 300 million yuan and is expected to be put into operation by the end of 23; the second phase, the 50,000 ton plan, with an investment of 800 million yuan, is expected to be put into operation in 24; the third phase of the 120,000 ton plan is expected to be put into operation in 26, with accelerated expansion of production capacity to form effective supply to enhance competitiveness.
The smooth progress in the expansion of diaphragm production capacity highlights the speed of the United Nations. High-quality customers guarantee orders and quality. The performance is expected to be realized that the company has now completed and put into operation three diaphragm production lines, and another production line has already entered the trial production stage, thus building a total production capacity of 300 million square meters. The company is determined to build production capacity, and its long-term plans may exceed 1.5 billion square meters. On the customer side, Anchi Technology's product certification has been certified and pilot order delivery has been completed, and sample delivery certification for other customers has progressed smoothly.
Investment advice: The company's net profit is expected to reach 372/552/800 million yuan on 22/23/24. The corresponding P/E is 31x/22x/17x, maintaining the “buy” rating.
Risk warning: New energy vehicle development falls short of expectations; capacity expansion product development falls short of expectations; material price fluctuations, etc.