The company deeply ploughs the main business of copper strip and foil, achieves full production and full sales, and expands production capacity to locate the middle and high-end demand. The company cut into the field of new energy, the layout of new energy battery trays and aluminum foil business, for the company to create new profit growth points. At the same time, cultivate and incubate a number of high-quality projects based on high-quality products, such as anticorrosion materials and thermal insulation materials, intelligent equipment and high-end equipment research and development.
Diversified business expansion. The company has ploughed the field of copper strip and foil for many years, acquired new materials from Harbin ship in 2020 and entered the field of anticorrosive and thermal insulation materials. In 2021, the company invested in Zhongyuan new energy and is responsible for battery tray business. In 2022, Zhongyuan aluminum foil plans to build a battery aluminum foil production line.
High-precision copper strip production capacity expansion, positioning in the middle and high-end application market. The company has an annual production capacity of about 100000 tons of copper strip and foil, and projects under construction are 100,000 tons / year of high-precision copper alloy strip (50,000 tons / year) and 50,000 tons of copper strip billet. With the rapid development of new energy and 5G communications, the demand for high-end copper strip is growing rapidly. The expansion capacity is mainly for downstream new energy vehicles, smart grid, semiconductor integrated circuits, 5G communications and other industries. It is expected to significantly improve the profitability of the company's copper strip products.
Close to new energy, vigorously develop battery tray and battery aluminum foil business.
The company's battery tray business is mainly carried out through Sun's Zhongyuan New Energy. The annual production capacity of the existing new energy vehicle battery package trays and energy storage battery package trays is proposed to be expanded to 500000, which is still in the capacity climbing stage and is expected to be completed and put into production by the end of 2022.
The company plans to build an annual production line of 50,000 tons of aluminum foil for batteries. Driven by new energy vehicles and energy storage, the global demand for battery aluminum foil is expected to reach 740000 tons in 2025. According to the current production situation of battery plants and the climbing progress of aluminum foil production capacity, the supply of battery foil is obviously difficult to match the growth of downstream demand. The company's battery aluminum foil project is led by subsidiary Zhongyuan aluminum foil, with an annual output of 50,000 tons of battery foil production line, and the first phase of 25000 tons is expected to be put into production by the end of 2023.
Acquire Harbin new materials and enter the field of anticorrosive and thermal insulation materials. Harbin ship New Materials has set up a production base in Mingguang City, Anhui Province, with an annual production capacity of 50,000 tons, which is expected to be completed in the second half of 2022. Its main products are anticorrosive materials and thermal insulation materials, and anticorrosive materials related products can be applied to heavy anticorrosive environment, mainly used in shipbuilding, chemical industry, military industry, bridges and other fields. At present, in China's anticorrosive paint market, foreign enterprises account for about 60% of the market share, of which the high-end market is as high as 80%, and the domestic substitution potential is huge.
For the first time, give a "highly recommended" investment rating. It is estimated that the 2022-2024 company's homing net profit is 1.7 billion yuan respectively, corresponding to the PE of 29-16-9 times, given a "highly recommended" investment rating.
Risk tips: new energy vehicle sales are not as expected, new project construction is not expected, industry competition risk, raw material price fluctuations, tax preferential policy changes, the current proportion of new energy business is low, and so on.
