Event: on the evening of December 4, the company announced that it plans to invest in the construction of an annual 1.3GWh sodium ion and lithium ion battery digital factory project through Jiangsu Haisida Power supply Co., Ltd., with a total investment of 218 million yuan and a construction period of about 7 months.
Comments:
It is proposed to expand the 1.3GWh sodium and lithium power projects to accelerate the layout of new energy battery business. According to the company announcement, by the end of 2021, Haisida Power, a subsidiary of the company, has a total capacity of 50820 million Ah / year for ternary cylindrical lithium-ion batteries (1.83 GWh/ years at 3.6V operating voltage) and 37125 million Ah / year for lithium-ion iron phosphate batteries (1.19 GWh/ years at 3.2V operating voltage). The company currently plans "annual 12GWh square lithium-ion battery phase I project" and "annual 2GWh high specific energy high safety power lithium-ion battery and power system phase II project", which will add 6 GWh/ annual lithium iron phosphate battery capacity and 1 GWh/ annual ternary battery capacity respectively, and are expected to be completed and put into production by the end of 2023 Q4 and 2022 respectively. Due to the rapid release of downstream demand and the increase of the company's orders, the company's square lithium iron phosphate battery products are currently in short supply. In order to alleviate the supply pressure of square lithium iron phosphate battery and meet the customer demand of downstream household energy storage market, the company has further laid out 1.3 GWh sodium ion and lithium ion battery digital plant project. In addition, as the new layout project is an intelligent automatic production line compatible with sodium-ion and lithium-ion batteries, the company can further expand its business from lithium to sodium electricity through this project. in order to make a forward-looking layout for the volume of sodium products in new application scenarios in the future.
The profitability of the main industry of automotive modified materials has significantly recovered, and the performance of 22Q3 has greatly increased compared with the previous month. 22Q3 achieved revenue of 1.881 billion yuan in a single quarter, an increase of 47.72 percent over the same period last year, an increase of 70.55 percent over the same period last year, and a net profit of 106 million yuan, turning losses into profits over the same period last year, an increase of 381 percent over the previous year. Benefiting from the rise in the volume and price of the company's main products, automotive modified materials, and the decline in the price of corresponding raw materials, the company's 22Q3 revenue and net profit have increased significantly. 22Q3's single-quarter gross profit margin reached 16.4%, an increase in 6.88pct and an increase in 3.82pct compared with the same period last year. At the same time, the company's holding subsidiary Haishida Power supply was formally incorporated into the company's consolidated statements in September 2022, which also had a positive impact on the company's financial data.
Earnings forecast, valuation and rating: taking into account the significant improvement in the profitability of the company's automotive modified materials business and the future performance contribution of the company's battery projects under construction / planning, we have raised our profit forecast for 2022-2024. It is estimated that the company's homing net profit from 2022 to 2024 will be 2.95 billion yuan (36.6% increase) / 6.63 yuan (37.0% increase) / 9.83 billion yuan (44.8% increase) respectively, maintaining the company's "overweight" rating.
Risk tips: capacity construction is not as expected, downstream demand is not as expected, product and raw material prices fluctuate, contract performance risk.
