The company issues the 2022 annual report and the 2023 quarterly report. In 2022, the company realized revenue of 8.316 billion yuan, + 17.86% compared with the same period last year, and realized net profit of 891 million yuan,-24.43% compared with the same period last year. 2023Q1 achieved revenue of 1.461 billion yuan,-17.50% year-on-year, and net profit of 8 million yuan,-98.22% year-on-year.

Dimethyl carbonate series: product prices fall, performance decline compared with the same period last year. Affected by the increase in terminal consumption in 2022, the overall market demand for carbonate solvent products throughout the year is relatively good, but due to the continuous expansion of industry production capacity, the price has fallen from the high level. The company actively distributes overseas markets, forms multi-base collaborative production, enhances the company's stable supply capacity, and achieves sales of 661000 tons of dimethyl carbonate series products, + 39.62% year-on-year; revenue 3.936 billion yuan, year-on-year-3.26%, gross profit 1.278 billion yuan, year-on-year-37.67%.

Methyl tert-butyl ether series: the export demand is exuberant, the gross profit increases compared with the same period last year. Affected by the conflict between Russia and Ukraine in 2022, the price of methyl tert-butyl ether rose to an all-time high. In the second half of the year, due to the fading of export dividends and the decline of crude oil shocks, the price of methyl tert-butyl ether gradually fell back to a low consolidation operation. The company achieved sales of 188800 tons of methyl tert-butyl ether series products,-43.76% year-on-year; revenue of 1.246 billion yuan, year-on-year-20.30%, gross profit of 94 million yuan, + 9.99%.

The construction of the new project is progressing steadily and is expected to contribute to the increase in the future. In terms of electrolyte, 300,000 tons / year electrolyte plant in Dongying base has entered the normal production stage; 100,000 tons / year liquid lithium salt project and 11,000 tons / year special additive project are scheduled to be completed in 2023; construction of 200000 tons of electrolyte project and 220000 tons carbonate project in Wuhan base has started, and the construction of 200000 tons electrolyte project in Leshan base has been steadily promoted according to the planned construction period. Lithium anode materials and semiconductor auxiliary materials wet electronic chemicals, 1000 tons / year silicon-based negative electrode production line stable production of high-efficiency silicon-carbon anode materials, Meishan base 30,000 tons / year silicon-based negative electrode project, 20,000 tons / year positive lithium supplement (phase I) and 10,000 tons / year new conductive agent project is scheduled to be completed in 2024.

Investment advice. The company is building more lithium materials projects, with the release of future production capacity, performance is expected to continue to grow. We estimate that the EPS of Wintek New Materials in 2023-2025 is 4.69,6.53,9.82 yuan respectively (previous forecast: EPS in 2022-2024 is 6.72,8.15,13.72 yuan respectively). With reference to the valuation level of the comparable company, it is given 19 times PE in 2022, corresponding to a target price of 89.11 yuan (the original target price is 127.68 yuan, corresponding to 19 times PE in 2022, a reduction of 30.21%), maintaining a "better than the market" rating.

Risk hint. The progress of the project under construction is not as expected, the downstream demand is not as expected, and the project approval progress is slow or can not be passed.