Deeply ploughing the rare earth permanent magnet material industry, optimizing the industrial structure anchoring business direction, the company is mainly engaged in the research and development, manufacturing and sales of rare earth permanent magnet materials, and is the world's leading supplier of rare earth permanent magnet materials application solutions. it has become one of the few enterprises in China to master a complete set of equipment manufacturing of rare earth permanent magnet materials. In 2020, the company spun off the servo motor business and focused on the strategic development of NdFeB magnetic materials market. The company currently has an annual production capacity of 15000 tons of NdFeB billet (as of mid-2022), which is expected to increase to 21000 tons by the end of 2022; in November 2022, the company raised 1.045 billion yuan in non-public offerings to build an intelligent manufacturing project of 15000 tons of high-performance rare earth permanent magnet materials in Baotou City, and we expect the production capacity to increase to 31,3.6 million tons in 2023.
With a firm grasp of the market tuyere, the "troika" of new energy vehicles, consumer electronics and industrial applications have benefited from the rapid development of the global new energy field. driven by new energy vehicles, wind power equipment and industrial energy-saving motors, the demand for NdFeB magnetic materials has increased highly. according to estimates, the total demand for high-performance NdFeB is expected to reach 146500 tons in 2024 and 32% CAGR in 2020-2024. The company firmly holds the market tuyere, the product downstream application field, Xinneng car, consumer electronics and industrial application "troika"
Qifa Power, the sales revenue of the three major areas was only about 10 million yuan in 2022, increased to 70 million yuan in 2021, and reached 1.67 billion yuan in the first three quarters of 2019.
In August 2022, the company and China Mineral Resources jointly set up Zhongyun Mining (45% owned by the company) to carry out long-term and in-depth cooperation on the exploration, development and utilization of rare earth ores. the company has the priority right to purchase rare earth mineral products; in November, Zhongyun Mining acquired Hong Kong rare earths from China Mineral and further won the exploration rights for the Kongbuwa rare earth mine in Zambia. The company has successfully opened the upper reaches of the industrial chain, the resource self-sufficiency rate + grain boundary diffusion processing capacity has both increased, the raw material cost is expected to further decline, the superimposed labor / manufacturing cost reduction and efficiency plan continues to advance, and the rapid profit growth of NdFeB business is expected in the future.
Investment suggestion
It is estimated that the return net profit of the company from 2022 to 2024 will be 445 million yuan, 822 million yuan and 1.063 billion yuan respectively, and the corresponding share price PE will be 24.7,13.4 and 10.3 times respectively.
Rating.