According to the company's 2022 performance forecast, it is expected to make a profit of 285 million yuan to 360 million yuan in 2022, an increase of 350% to 469% over the previous year. The reasons for the performance changes are as follows: 1. The company actively carries out all kinds of work in accordance with the annual business plan, constantly enhances its core competitiveness, organizes product production scientifically under the guidance of market, further strengthens market sales and promotion work, and greatly increases its operating income and gross profit. Business performance has achieved a good growth trend; 2. The company continues to implement measures to reduce costs and increase efficiency, strengthen cost control, optimize organizational structure, strengthen supply chain integration, and further enhance the overall profitability of the company; 3. It is estimated that the impact of non-recurring profit and loss on the net profit of shareholders belonging to the company is about 7.5 million-9.5 million yuan.

The company signed a strategic cooperation agreement on the industrialization of sodium ion batteries. The company signed a strategic cooperation agreement with Cube New Energy and colorful Chemistry to jointly improve the technical indicators to promote the industrialization of Rushland (white) material sodium ion batteries. The first cooperation period is 10 years. In September 2022, the company and colorful Chemistry signed a "Strategic Cooperation Agreement" on the joint investment of 2.5 billion yuan in the construction of the "annual production capacity of 180000 tons of battery-grade Prussian blue (white) project". At present, 50 tons of pilot production line of Prussian Blue (White) project has been put into production. The follow-up project will be divided into three phases according to the original plan, and the first phase of the project is expected to be completed by the end of 2023.

Anhui Meixin won 12 million yuan of lithium battery diaphragm order. Anhui Meixin, a subsidiary, signed a "sales contract" with Nanmu Nano, agreeing that Anhui Meixin sold 1000 million m2 lithium battery separators to Nanmu Nano, with a contract amount of 12 million yuan (including tax). It is estimated that the diaphragm shipment will be about 3000 million m2 in 2022. At present, the annual production capacity of the diaphragm is 300 million tons, and it is estimated that the fifth and sixth production lines of the project will be put into production in the fourth quarter of 2023, with an annual production capacity of 700 million tons. The production and sales volume is expected to reach 400 million m2 in 2023.

It is planned to invest 10 billion yuan to build a new production line to enhance the production capacity of color masterbatch and lithium diaphragm. The company plans to increase 450 million yuan in capital to Sichuan Wachovia, a wholly-owned subsidiary, and take it as the main body to invest 10 billion yuan to build a "construction project with an annual output of 2.3 million tons of new energy and polymer materials industrialization". The construction of the project is divided into three phases, and the construction period is expected to be 60 months. after all the project has been put into production, the estimated annual output value is 16 billion yuan and the annual tax is 1 billion yuan. The first phase is expected to invest 3 billion yuan to build an annual sulphuric acid plant with an annual output of 900000 tons, an annual production capacity of 200000 tons of titanium dioxide, an annual output of 300000 tons of high-end plastic masterbatch and 600000 tons of ferrous sulfate. The construction period of the first phase is 30 months, and trial production is expected by the end of June 2025. The first two phases of this construction project have the construction of sulfuric acid plant and titanium dioxide plant, which can produce titanium dioxide and by-product ferrous sulfate (ferrous sulfate is an intermediate raw material for the production of new energy materials lithium iron phosphate and Prussian blue). And titanium dioxide is directly used as raw material to produce white masterbatch.

Profit forecast and investment rating. We estimate that the return net profit of the company from 2022 to 2024 is 324 million yuan, 448 million yuan and 506 million yuan, and the EPS is 0.62,0.85,0.97 yuan. The company has more new capacity release to give a certain valuation premium, with reference to companies in the same industry, we give 2023 PE25-28 times, corresponding to the reasonable value range of 21.25-23.80 yuan. For the first time, the coverage gives it a rating of "better than the market".

Risk hint: the project construction progress is not as expected, the product price fluctuates greatly, and the macro-economy goes down.