Lithium industry motor coordinated development, outstanding performance. The company is a national high-tech enterprise integrating special motors and lithium new energy products. The company is mainly engaged in special motors and lithium mining and deep processing business, and is the drafting unit of domestic industry standards for the preparation of lithium carbonate from lithium mica. Centering on the main line of "focusing on reform", the company is moving towards the strategic goal of "large global suppliers of lithium carbonate". In 2021, the company's annual output and sales of lithium carbonate products increased by 244% and 232% respectively compared with the same period last year; the annual output and sales of selected products increased by 67% and 92% respectively.
With the rapid development of clean energy, the lithium industry is booming. On the supply side of the lithium industry, the development and expansion of Australia's eight major lithium mines will continue to provide lithium ore supply, but labor shortage may affect the progress of production.
South American brine is rich in lithium resources, but the salt lake development cycle is relatively long. According to Bacanora's forecast, the global lithium resource output CAGR will be 13.4% from 2020 to 2023. As for the demand of lithium industry, with the rapid development of clean energy such as new energy vehicles and energy storage, the demand for lithium has been continuously driven. According to Wood Mackenzie's estimate, the global lithium resource demand CAGR will be 24.4% from 2020 to 2025.
With the promotion of Qiankeng's "exploration and conversion" work, the production of lithium resources and lithium products has been accelerated. In terms of process technology, Silver Lithium New Energy, a wholly owned subsidiary of the company, has 8 patents for the extraction of lithium from mica, which is the drafting unit of the domestic industry standard for the preparation of lithium carbonate from lithium mica, and is the forerunner in the industry of preparing lithium carbonate from lithium mica. At present, the company has set up six measures to expand the production of lepidolite mining and concentration. in terms of mineral resources, the company will speed up the "exploration and conversion" work in Qiankeng to form mining capacity. In terms of mining and mineral processing capacity, the company plans to expand the existing mining and mineral processing scale in Shiziling, quickly promote Yifeng's new annual mining and separation project of 3 million tons of raw ore, and will rapidly increase mineral processing capacity through joint ventures and commissioned processing. The company plans to increase lithium mining and mineral processing output year by year in the next three years, the mining output is expected to increase from 1.1 million tons in 2021 to 6 million tons in 2024, and the mineral processing output is expected to increase from 150000 tons in 2021 to 840000 tons in 2024.
Investment suggestion
With the gradual release of the company's production capacity, the prosperity of the industry remains high. We estimate that the net return profit of 2022 and 2023 in 2024 will be 3769, 4745,552 million respectively, and the corresponding EPS will be 2.21, 2.78 and 3.25 respectively. Based on the closing price of 24.99 yuan on August 5, 2022, the corresponding PE is 11.31, 8.99 and 7.68 times, respectively. Combined with the prosperity of the industry, optimistic about the development of the company.
Cover for the first time, giving a "highly recommended" rating.
Risk hint
The growth of lithium battery demand is not as expected, the company's lithium ore exploration and conversion progress is not as expected, geopolitical and trade policy risks.