Events:
The company recently issued a pre-plan for the non-public offering of A-shares (revised version), with the total amount of funds to be raised (including issuance fees) not exceeding 2.2 billion yuan; the company intends to purchase 79.7883% of the shares held by Haishida Group in cash.
Main points of investment:
Enter the lithium power industry to achieve "new materials + new energy" dual-core drive pulit mainly for modified materials and ICT materials, in order to further expand the scope of business, the company plans to pay cash to buy 79.7883% of Heshida Power held by Haishida Group, the transfer consideration is 1.141 billion yuan. For nearly 30 years, Haisida Power supply has laid out and completed the independent innovation of power and high and low temperature nickel battery technology. the products are first used in portable power tools, emergency lighting and small household appliances and other industries. and gradually expand to other fields. At the same time, in line with the development trend of the industry, Haishida Power supply began the research and development and storage of power lithium battery related technologies in 2002, and completed its industrialization in 2009. Lithium ion battery products were gradually introduced in the fields of power tools and communication base station energy storage. By the end of 2021, Haishida Power supply has ternary, lithium iron phosphate and other battery capacity 3.03GWh/ in 2021. Hai Sida Power supply achieves 1.853 billion yuan in revenue and 102 million yuan in net profit, with strong profitability. Through this transaction, while the company's profitability has been improved, the company will quickly cut into the lithium-ion battery business and form a dual-main business operation model of "new materials + new energy". Realize the strategic transformation and upgrading of the company's main business to new materials and new energy.
With the rapid development of energy storage and small power lithium battery, the company continues to improve its production capacity and layout. After the completion of the equity transfer, Pulit will have the right to increase the capital of Haishida Power by no more than 800 million yuan for the two projects of "annual 2GWh high specific energy high safety power lithium ion battery and power system phase II project" and "annual 12GWh square lithium ion battery phase I project (annual production 6GWh)". Among them, the annual 2GWh high specific energy high safety power lithium-ion battery and power system phase II project will form the capacity of 1GWh cylindrical lithium-ion battery, which is mainly used in the field of small power lithium-ion battery. Benefiting from the cordless power tools, the market demand for small power lithium-ion batteries such as power tools is growing rapidly. According to GGII data, the global lithium battery shipments for power tools will be 22GWh in 2021, and it is predicted that the shipments will increase to 60GWh in 2026, which still has 2.7 times the growth space compared with 2021. At the same time, the first phase of the annual 12GWh square lithium-ion battery project will form the production capacity of 6GWh square lithium-ion battery, which is mainly used in the field of energy storage. At present, the global and domestic energy storage industry is developing rapidly. According to GGII, the demand of the global energy storage lithium battery industry will reach 460G by 2025. The compound growth rate will reach 60.11% from 2021 to 2025. At present, Haisida Power has 1.19GWh/ annual lithium battery production capacity, and the first phase of the annual 2GWh high specific energy high safety power lithium ion battery and power system project has also been put into production in 2021. With the two new projects reaching production one after another, the company's competitiveness and scale advantages in the energy storage and small power lithium battery industry will be further enhanced.
5G leads the demand for LCP, and the company achieves industry-wide coverage.
The company attaches great importance to the future development trend of the electronic new materials industry, especially under the background of 5G IoE communication technology, the company seizes the development opportunity of high-end communication materials and actively distributes the LCP material industry. LCP is the best key material for signal transmission at present, which is mainly used in 5G high-frequency high-speed communication materials, high-frequency electronic connectors, military and aerospace materials and so on. After 15 years of independent development and industrial integration, the company currently has 2000 tons of LCP resin polymerization capacity, 3 million square meters of LCP film production line, and 150T (200D) LCP fiber production capacity, is the only one in the world to pull the industrial chain, while with LCP resin synthesis, modification, blowing film, and spinning technology and mass production capacity of enterprises. With the comprehensive popularization and application of new technologies such as 5G communications, Internet of things and artificial intelligence, and the release of the company's production capacity benefits, LCP business will bring new growth points for the company.
The profit forecast and investment rating are based on prudent principles, and without taking into account the dilution of the shares in this issue and the impact of the acquisition, the company's 2022 Universe 2023 Company's 2024 net profit is expected to be 236 million yuan, 361 million yuan and 498 million yuan respectively, corresponding to PE of 57.5,37.6 and 27.2 times, respectively, maintaining the "buy" rating.
The risk indicates that the price of raw materials fluctuates, the downstream demand is lower than expected, the risk of LCP research and development is not as expected, the risk of uncertainty in the specific progress of restructuring, acquisition and implementation, and the schedule of additional issuance is not as expected.
