The company issued an annual performance forecast for 2022: it is expected to achieve a net profit of RMB 2.85-360 million, an increase of 350-469%, and a deduction of non-net profit of RMB 2.765-351.5 million, an increase of 359%-483%.
The rise in the volume and price of cyanuric chloride contributes to profits, and the color masterbatch extends upward the integrated layout of titanium dioxide to improve the profitability thanks to the elimination of the impact of the Xiangshui incident in Jiangsu Province to achieve normal supply. the stable demand and diversified application scenarios in the downstream agricultural production field continue to provide a new growth curve, and the volume and price of cyanuric chloride rise together to drive a substantial increase in profits.
On the other hand, due to the upward movement of macroeconomic sluggish profits and the impact of the epidemic situation on the demand for plastic products, the performance of color masterbatch is under pressure; but the company actively expands the integrated layout of raw material titanium dioxide, making full use of the abundant natural gas and mineral resources in Dazhou City, Sichuan Province, strong support from local governments and well-equipped parks to speed up project construction and consolidate existing business advantages and enhance market voice and profitability.
The accelerated release of diaphragm production capacity is expected to gradually contribute to performance.
At present, all four diaphragm production lines have been completed and put into production, with a total production capacity of 300 million square meters; in the process of expanding customers, the company has firmly promoted capacity construction, and has signed an equipment procurement contract with Zipu Machinery, which may increase 400 million square meters in 2023. Long-term planning may exceed 1.5 billion square meters, and new entrants will further seize the share; capacity construction will form an effective supply, and the performance is expected to be released quickly. At the same time, we further develop the diaphragm between semi-solid battery and sodium battery, and aim to become an excellent wet diaphragm supplier in lithium battery, sodium battery, semi-solid battery and other industries.
Efficient execution and the advantages of technical raw materials to create the leader of the sodium power Prussian system, upstream and downstream cooperation to promote the application of landing companies to layout sodium battery field, continue to establish cooperation, cooperate with Shenzhen Huasai new materials and hold 7% of its equity. A joint venture with Qicai Chemical plans to build a 180000-ton battery-grade Prussian Blue (White) project. Cooperate with colorful Chemistry and Hunan Cube New Energy Strategy to promote the application of Prussian blue and white positive and negative materials for sodium batteries, which is expected to create a leader in the Prussian system of sodium electricity. In terms of technology, the company has its own technical accumulation of chemicals and cyanide, as well as the advantages of cooperative colorful chemistry for Rushland Blue (White) industrialization technology, cost and environmental protection treatment; with a scarce cyanide production license and more than 30 years of production experience, the production capacity of 300000 tons of sodium cyanide leads the world, which strongly supports the expansion of cathode materials, and integrated production is conducive to cost reduction. The development and application of cooperation with downstream battery factories can strongly prove the application feasibility and economy of Prussian route sodium electricity, thus promoting the development of industrialization.
Investment advice: the company's net profit from mothering in 22-23-24 is expected to reach RMB 51100,745 million (the previous value is RMB 372 / 8m), with 29x/19x/13x corresponding to Pmax E, maintaining a "buy" rating.
Risk tips: the development of new energy vehicles is not as expected; the development of capacity expansion products is not as expected; material price fluctuations and so on.