The income of domestic advanced negative enterprises has increased rapidly in the past four years. Xiang Fenghua is an advanced supplier of lithium battery anode materials in China. Benefiting from the strong demand for new energy vehicles, the company's revenue has also achieved rapid growth. In 16-19, the company's income increased from 237 million yuan to 646 million yuan, with a compound growth rate of 39.72%. The gross profit margin decreased from 39.0% to 22.0% gross profit margin declined in 16-18, and the company's gross profit margin stabilized in 19 years. From 16 to 19, the company's net profit increased from 40 million yuan to 62 million yuan, representing a compound growth rate of 15.38%.
There has been a high growth in sales over the past three years, and prices have dropped slightly. With the growth of domestic sales of new energy vehicles, Xiang Fenghua has entered a stage of rapid development. In 17-19, the company's natural graphite production capacity was 3750 tons, 3860 tons and 3780 tons respectively, the output was 2780 tons, 4191 tons and 3436 tons respectively, and the sales volume was 2888 tons, 4234 tons and 2926 tons respectively. In 17-19, the company's artificial graphite production capacity was 6220 tons, 9011 tons and 15350 tons respectively, the output was 7023 tons, 9781 tons and 14334 tons respectively, and the sales volume was 6737 tons, 9529 tons and 13313 tons respectively. According to the data of the company's prospectus (registration draft), the sales unit prices of artificial graphite in 17-19 years are 427000 yuan / ton, 515000 yuan / ton and 423,000 yuan / ton respectively, and the sales prices of natural graphite are 259000 yuan / ton, 242,000 yuan / ton and 2600000 yuan / ton respectively.
Rich in customer resources, covering global first-tier brands. In 19 years, the company's largest customer was BYD, accounting for 40.6%. On the basis of maintaining old customers, the company made great efforts to develop potential customers abroad and promote cooperation with international customers as soon as possible. In August, 17 years, the company has passed the Ningde era product certification, and small batch supply of more than 130 tons, 18 years in October, the supply volume appeared faster. For 18 years, the company has passed the LG chemical certification test. On October 29, 19, the company obtained the approval notice for the acceptance of LG chemical products. The natural graphite products supplied by the company were applied to the project of Tesla, Inc. Shanghai Factory by LG Chemistry and became the indirect supplier of Tesla, Inc. Shanghai Factory. In April 20, the company officially became a qualified supplier of Samsung SDI. Samsung SDI has purchased the company's products on a small scale for trial production and commissioning since June 20, and is expected to purchase in bulk for formal production in December 20. At present, the company is working with Panasonic and other international well-known battery manufacturers to carry out cooperation negotiations and related certification.
Products are competitive and have a strong position in the industry. From the perspective of product structure, Xiang Fenghua has both natural graphite and artificial graphite, and its products, production capacity and technology reserves are more balanced and can better adapt to the ever-changing market demand. According to LG Chemical's 20-year production plan, it is estimated that the demand for natural graphite products in the whole year of 20 is about 9400 tons. In terms of capacity expansion, Xiang Fenghua has a production capacity of about 20,000 tons at the end of 2019 and is expected to be about 30,000 tons in 2020. In the future, with the production capacity of 30,000 tons of fund-raising projects, Xiang Fenghua will form a production and marketing scale of more than 60,000 tons, and the revenue scale will double on the basis of 2020.
Give a rating of "better than the market". We estimate that the comprehensive diluted EPS of the company in 20-22 years is 0.88,1.56,2.49 yuan respectively. As the epidemic in the past 20 years has a great impact on the company, we take 21 years as the performance benchmark year; with reference to the comparable company valuation, we give the company 45-50 times PE in 21 years, corresponding to a reasonable value range of 70.20 yuan to 78.00 yuan, covering it for the first time and giving it a "better than big city rating".
Risk hint. The implementation of the fund-raising project is not as expected; the negative price and sales volume of the company are not as expected.