Event: the company issued a notice on the signing of a cooperation framework agreement between the subsidiary and Ningde Times, stipulating that Anhui Zhongji promised to supply lithium aluminum foil to Ningde era from January 1, 2023 to December 31, 2026. The minimum supply is 320000 tons (the final supply and price shall be subject to the subsequent specific orders of both parties). The signing of the cooperation agreement marks the Ningde era's recognition of the quality and production capacity of the company's lithium aluminum foil, and further verifies the company's competitiveness in the field of aluminum foil for power batteries of new energy vehicles.
Battery aluminum foil: there are only 5 aluminum foil factories in the industry that can be supplied directly to Ningde, and the company has made a rapid breakthrough and developed into a second supplier. As the leader of high-end packaging aluminum foil, the company began to expand production of battery aluminum foil in 2018, and has the advantage that it is difficult for the same industry to copy in high-end imported equipment and production experience. at present, the first phase of 40,000 tons of battery foil has climbed to full production, followed by the second phase of 32000 tons and an increase of 100000 tons. It is expected that the market share will increase rapidly this year and next, and the performance flexibility is also greater under the scale effect. Energy storage promotes the rapid growth of demand for carbon-coated aluminum foil, and the net profit per ton is expected to double. Carbon-coated aluminum foil is widely used in lithium iron phosphate and ternary batteries to improve the contact interface between positive active material and foil. It has the advantages of increasing battery energy density, restraining battery polarization, reducing battery internal resistance, increasing battery cycle life, improving battery material processing performance and so on. Relying on the advantage of battery foil, the company entered carbon-coated aluminum foil through the acquisition of Shenzhen Yuqiang, and put into construction a new energy carbon-coated foil project with an annual output of 50,000 tons.
PET copper foil: research and development pioneer, the first echelon of mass production, enter the C sample link in the fourth quarter of 2021. Replacing the current battery copper foil with double-sided copper layer structure of membrane substrate can achieve the purpose of reducing weight, increasing unit capacity storage and improving battery safety. Relying on the high resistance diaphragm business, the company leads the industry in the technical level of evaporation and magnetron sputtering processes. The small coil samples of PET copper foil have passed customer certification in 2021Q4, and are now in the stage of meeting the downstream demand and breaking through mass production.
High resistance diaphragm: pathfinding photovoltaic backplane, which has formed revenue contribution. At present, the company has the only domestic imported evaporation equipment, and exclusively joins hands with downstream customers to make research and development breakthroughs in the field of high-end packaging, focusing on expanding the market segments such as high-resistance diaphragm and energy-saving film for photovoltaic backplane, car and clothing film. actively cultivate products and market segments with high development potential
Maintain the "highly recommended" investment rating. Battery aluminum foil supply continues to outstrip demand, the industry has begun to Ningde, BYD and other major customers processing fee increases, is one of the few battery materials for this year's rising processing fees.
It is estimated that from 2022 to 2024, the company will achieve a net profit of 2.2,3.6 and 420 million yuan, corresponding to a price-to-earnings ratio of 38,23,19 times, and maintain a "highly recommended" investment rating.
Risk hints: lower-than-expected demand for new energy vehicles, downward processing fees, macroeconomic risks, and so on.