Items:

Recently, the company and its subsidiaries Foshan Dawei and Shenlong Baoding jointly set up a joint venture Henan Lyle to build an annual carbon foil project with an annual output of 60,000 tons, of which Lyle Technology contributed 70%, Shenlong Baoding 20%, and Foshan Dawei 10%. At present, Henan Lyle has completed the registration of industrial and commercial establishment.

Guoxin Dianxin's new point of view: 1) the company will coordinate the upstream and downstream layout in the field of carbon foil coating to grasp the development opportunities of fast charging and long cycle. Carbon-coated aluminum foil can optimize battery rate performance and improve cycle life. At present, it is mainly used in lithium iron phosphate battery, and it is expected to be used in fast charging and other scenarios in the future. The company has reached strategic cooperation with Shenlong Baoding and set up a joint venture company. On the one hand, the company is expected to achieve in-depth cooperation with aluminum foil enterprises to ensure the supply of raw materials; on the other hand, the two sides have reached a strategic cooperation agreement and the production base is adjacent. It is expected to achieve local coordination to improve product quality. 2) the company actively distributes the field of new energy, and the carbon nanotube business is advancing steadily. The company plans to invest 1.215 billion yuan to build an annual production capacity of 3800 tons of carbon nanotube powder + 38000 tons of slurry, of which the first phase plans 1800 tons of powder + 18000 tons of slurry, and the second phase plans 2000 tons of powder + 20,000 tons of slurry. The first phase of the project is expected to be completed in the first half of 2023, and the second phase is expected to be completed in early 2024. At present, the company is working with mainstream suppliers of power batteries to send samples for testing. 3) Investment suggestion: raise the profit forecast and give the "overweight" rating. The company actively arranges carbon-coated aluminum foil, carbon nanotubes and other businesses to seize the development opportunities of new energy vehicles and energy storage industry. Taking into account the increase in the company's shareholding in Foshan, we adjust our profit forecast. It is estimated that the company will achieve a net profit of RMB 0.51 billion in 2022-2024 (the original forecast is RMB 0.51). Compared with the same period of the same period last year, 145% of the current PE is 1.48 yuan, and the current stock price is rated as "increasing holdings" for the first time.

Risk hint

Raw material price fluctuation risk: the company's raw materials involve resin, copper wire, etc., if it fluctuates too much, it will have a significant impact on the company's profitability.

Capacity construction is not as expected: carbon nanotubes, carbon-coated aluminum foil-related projects may have the risk that the construction progress is not as expected.

Customer development is not as expected: in the process of customer development of the company's new products, if the development or verification is not as expected, it will have a certain impact on the company's performance.