Event: the company released its 2021 annual report on March 28. In 2021, the company achieved revenue of 8.225 billion yuan, an increase of 43.88% over the same period last year, a net profit of 853 million yuan, an increase of 142.97% over the same period last year, and a net profit of 930 million yuan, an increase of 192.72% over the same period last year. 2021Q4 achieved revenue of 2.051 billion yuan, up 12.47% from the same period last year, down 5.93% from the same period last year; net profit from home was 262 million yuan, up 137% from the same period last year, up-2% from the previous year; and deducting 382 million yuan from non-home net profit, up 353% from the same period last year and 50% from the previous year.
The net profit of 853 million yuan in 2021 is mainly due to the increase in sales of new energy electrode foil business, the rise in product prices and the rise in volume and price. Quantity: the output of products increased compared with the same period last year. The company's "annual output of 15 million square meters of high-voltage high-performance foil project" has been gradually put into production, and the production and sales of high-purity aluminum, electronic aluminum foil and electrode foil products have increased compared with the same period last year. The company's electronic aluminum foil output was 29200 tons, an increase of 21.63% over the same period last year; the output of formed foil was 2476 million square meters, an increase of 32.03% over the same period last year; and the alloy output was 85800 tons, an increase of 31.03% over the same period last year.
Price and cost: both price and cost have increased, and unit profitability has increased slightly. The average annual price of aluminum in 2021 was 18884 yuan / ton, an increase of 35.01% over the same period last year. The rise in aluminum prices has a positive impact on the company's performance, the company's business is mostly related to aluminum, and the gross profit margin and profitability of major products have significantly improved.
2021Q4's homing net profit increased compared with the same period last year, and decreased month-on-month due to non-operating factors. Compared with the same period last year, the average sales price of the company's main products increased in 2021. Coupled with investment income, 2021Q4's net profit increased by 154 million yuan compared with the same period last year. Compared with the previous month, the net profit of homing has declined, the growth of gross profit still contributes mainly to the increment, and the investment income also contributes 27.38 million yuan. however, the non-operating profit reduces 28.88 million yuan to the company, and the expenses and taxes even reduce 43.02 million yuan. as a result, the company's net profit decreased by 6.46 million yuan compared with the previous month.
Integrated suppliers of new electronic materials, the complete industrial chain creates profound technical and cost barriers, benefiting the economic growth of the new energy industry. The company is one of the top 100 electronic components enterprises in China, with a production capacity of 180000 tons of high-purity aluminum, 55000 tons of high-purity liquid aluminum, 35000 tons of electronic aluminum foil and 23 million square meters of electrode foil. Has formed "energy-(once) high purity aluminum-high purity aluminum / alloy products-electronic aluminum foil-electrode foil" electronic new materials circular economy industry chain. In 2021, the growth in the field of new energy contributed to the reversal of capacitor demand, and the company's electrode foil business ushered in a rise in volume and price, of which electrode foil in new energy-related fields accounted for 20-30% of the company's electrode foil sales. We believe that the company is expected to benefit significantly as the downstream boom continues in 2022.
The rights issue expansion project benefits from the development opportunities of semiconductors and aerospace, and the participation in Tianchi Energy is expected to increase the investment income. The company's 2021 rights issue project will expand 15000 tons of high purity aluminum production capacity, 500 tons of ultra-high purity aluminum base sputtering target billet (used in semiconductor chips, flat panel displays, etc.), and 3000 tons of strong and high toughness aluminum alloy large section billet (used in aerospace field). The high gross profit margin of the expansion project will bring high elasticity to the company's performance. The company's stake in Tianchi Energy will benefit from the continued improvement of coal and power generation business, and is expected to usher in more room for development in the future.
Investment suggestion: we expect the company to achieve a net profit of 1.098 billion yuan, 1.271 billion yuan and 1.471 billion yuan in 2022-2024, with an EPS of 0.82,0.94 and 1.09 yuan respectively, and a PE of 9, 8 and 7 times the closing price on March 29, respectively, maintaining the "recommended" rating.
Risk tips: falling aluminum prices, capacity release, downstream demand is not up to expectations, and so on.