Q2 performance is + 75% year-on-year, with sufficient funds to ensure future growth. The company released its semi-annual report of 2022: 2022H1 achieved operating income of 265 million yuan (year-on-year + 42.71%) and return to its mother net profit of 8.4867 million yuan (year-on-year-4.71%). Affected by the epidemic, intensified competition, demonstration of new areas, provision of credit impairment losses and other factors, the performance in the first half of the year declined slightly compared with the same period last year. However, Q2 homing net profit is + 74.65% year-on-year, which is the first time since 2021 to achieve positive year-on-year growth in single-quarter performance. The inflection point trend has already appeared. The company has raised additional funds in place, and there is plenty of cash to ensure future growth.
Revenue from the overall solution of membrane integration technology increased by 48.8% compared with the same period last year, and the expansion of various fields was steadily advanced.
Benefiting from the vigorous development of new orders, 2022H1 achieved revenue of 231 million yuan (+ 48.86% compared with the same period last year) and 33 million yuan (+ 12.11% compared with the same period last year) for membrane materials and accessories business. From the perspective of orders, the total amount of new contracts signed by the company in 2021 exceeded 1 billion yuan, and diversified businesses such as CO fuel ethanol (with a cumulative application scale of more than 200,000 tons / year), industrial water treatment and lithium extraction from salt lakes made steady progress.
The 1000 t / a lithium chloride project has been completed, together with Zijin to accelerate the extraction of lithium by "adsorption + membrane process". In 2018, the company won the bid for Minmetals Salt Lake 10,000 tons / year lithium carbonate project, successfully stuck in the salt lake lithium extraction core process package (adsorption + membrane method). In January 2022, we raised an additional 103 million yuan through a summary procedure, and successively signed the projects of Zabuye 100 tons / year lithium hydroxide pilot test and Jinhai lithium industry 1000 tons / year lithium chloride. The lithium chloride project has been completed by 2022H1 1000 tons / year, and the industrial production capacity of self-developed adsorbents is expected to be about 2000 tons / year this year. In addition, the company has reached a strategic cooperation with Zijin Mining Group. The combination of technology and resources will accelerate the release of lithium from the salt lake.
Profit forecast and investment advice. It is estimated that the return net profit of the company from 2022 to 2024 is RMB 1.02 billion, respectively, and the PE corresponding to the latest closing price is 19.80 times that of 26.84. Card position lithium extraction core process package, emerging downstream efforts in many fields, to give the company 2022 50 times PE valuation, corresponding to 41.52 yuan / share reasonable value, to maintain the "buy" rating.
Risk hint. The progress of the project is not as expected, the sales volume of membrane equipment is not as expected, the competition is intensified and so on.