The company won the bid for the 20,000-ton lithium cathode package project, with a contract amount of 965 million.
The company announced on March 5 that the intelligent plant with an annual output of 20,000 tons of lithium cathode materials (EP integration) project won the bid price of 965 million, accounting for 61.64% of the company's total revenue in 2017. Winning the bid has laid a solid foundation for steady performance in 2019.
Recognized by domestic first-class customers and benefiting from the high nickel trend of ternary materials, there is a bright future for the integration of the whole line.
Dangsheng Science and Technology is the leading enterprise of cathode materials in China, which announced the construction of 100000 tons of new lithium materials in August 2018. The 965 million contract awarded to Baili Lithium Power is its first phase of 20, 000 tons of capacity construction project. The adoption of the whole-line delivery model will help to speed up the project progress, shorten the construction period, and quickly alleviate the capacity bottleneck of material enterprises. under the background of accelerating the expansion of production capacity of material enterprises, the advantages of the company's whole-line delivery model will become more and more obvious.
Lithium electric material production line overall solution leader, customer structure continues to upgrade
The company acquired Nanda Zijin in September 2017 and entered the lithium material industry. Nanda Zijin has accumulated in the field of cathode production for many years, and the lithium customer structure is very excellent. The main customers include Dangsheng, Palmer, Shanshan, Mengguri, Betteri and other mainstream cathode material manufacturers. In the field of intelligent production line and equipment business of lithium-ion battery cathode materials, the company layout is rapid, and the business is developing rapidly. as a new profit growth point, its experience advantage, technology advantage and cost advantage are becoming more and more obvious.
The high nickelization of lithium ternary materials is unstoppable, and the production capacity needs to be expanded urgently.
According to the prediction of true lithium research, using ternary 811 + graphite, the energy density of leading manufacturers is expected to achieve 250wh/kg, lithium ternary material high nickel is becoming the mainstream choice of battery factories. At present, the effective production capacity of high-nickel cathode materials in China is limited, and there is almost no surplus capacity considering the factors such as capacity climbing and export. High nickel will meet the peak of production expansion in the future. Bailey Technology, as a rare production line contractor, will significantly benefit from the capacity expansion of leading lithium materials such as Dangsheng Technology.
Profit forecast and investment rating: taking into account the lower-than-expected demand in the lithium power industry, we lowered our forecast for the company's operating income from 2018 to 2020, from 13.98,24.97 and 3.067 billion yuan to 11.17,21.86 and 2.912 billion yuan respectively, and the forecast for return net profit from 2.5,4.81 and 623 million yuan to 1.52,3.31 and 440 million respectively, corresponding to an increase in PE. From 15.32,7.95,6.14X times to 47.1 times, 21.7 times and 16.3X times respectively, continue to focus on recommendation and maintain the "buy" rating.
Risk tips: the demand for lithium materials is lower than expected, the company's order delivery and revenue confirmation are not as expected, downstream customer bidding is not as expected, industry competition is intensified, etc.