Events:
According to the results announcement issued by cyber in the first three quarters of 2022, 2022Q1~Q3 achieved revenue of 234 million yuan, year-on-year-14.99%, net profit of 22 million yuan, year-on-year-45.71%; Q3 alone realized revenue of 94 million yuan, + 12.04% year-on-year, and net profit of 16 million yuan, + 51.44% year-on-year.
Main points of investment:
Actively layout the salt lake lithium extraction business, profitability continues to improve. 2022Q3's gross profit margin is 3300%, year-on-year-4.50pcts, month-on-month + 1.76pcts. The year-on-year decline in the company's gross profit margin was mainly due to the repeated COVID-19 epidemic, the global economic downturn, geopolitics and other factors: 1) the production of the Shanghai base on the production side was suspended for two months; 2) the client demand was weak, and the number of new projects and orders shrank; 3) the price of raw materials on the cost side rose; and multiple factors led to the overall decline of the company's gross profit margin in 2022. The company's gross profit margin has gradually improved month-on-month, mainly due to the gradual weakening of external environmental impacts such as the epidemic since the second half of 2022, while the company has strengthened management efforts to reduce costs and increase efficiency, and has made an active layout in the field of customized development of lithium extraction from salt lake brine, with initial results in 2022Q3 and continuous improvement in profitability.
The management of R & D has shown initial results, and the level of expense rate has gradually decreased. 2022Q3 company sales rate 1.20%, year-on-year-0.46pcts, month-on-month-0.46pcts; management fee 11.35%, year-on-year-3.78pcts, month-on-month-3.19pcts; R & D rate 7.08%, year-on-year-0.63pcts, month-on-month-1.12pcts. The high cost of 2022H1 and the improvement of 2022Q3 are mainly due to the following reasons:
1) the 2022H1 epidemic and the rising price of raw materials have led to rising costs, increasing management investment, strengthening cost control and quality control; 2) 2022H1 has increased its R & D investment to develop low-temperature pretreatment nanofiltration membrane based on the customization of Tibetan salt lake, realizing a revolutionary change in lithium extraction from old brine to raw brine, and pilot trials have been carried out downstream. 3) the 2022H1 company completes the infrastructure construction of the fund-raising project, increases the investment in the technical transformation of various production equipment, and improves the production efficiency and product consistency, which will help the company to continue to reduce costs and increase efficiency; 4) due to the increase in exchange rate and the decrease in bank loan interest, 2022H1 Company has made a financial income of 3.9772 million yuan and diluted the expense rate level.
The future mineral development is expected to focus on the domestic, long-term optimistic about the company's business layout of lithium extraction by membrane process.
On November 2, the Ministry of Industry of Canada asked three Chinese companies (China Mineral Resources, Shengxin Lithium Energy and Zangge Mining) to divest their investments in key Canadian mineral companies, and Chinese enterprises may turn to domestic investment opportunities. it is beneficial to the exploration layout of domestic mining resources. Only Cyber is the leader of domestic membrane separation technology, which has a thick technical precipitation in the field of high-performance roll separation membrane, and the core technology has reached the advanced level of the industry. The company's traditional business layout in the field of water treatment, the demand for sewage resource treatment is expected to increase in the future, the technology of domestic membrane products may be gradually replaced by imports, and the traditional water treatment business is expected to continue to benefit; since 2019, the company has entered the field of lithium extraction from salt lakes in Tibet. Low temperature pretreatment nanofiltration membrane and membrane system have been developed for Tibet Salt Lake, which has yet to be developed and has excellent resource endowment, which has entered the pilot stage. In addition, the company expands and develops the technology of extracting lithium from ores and batteries, and the technology of extracting lithium by membrane is expected to become the second growth curve of the company, and is optimistic about the development of the business of extracting lithium by membrane for a long time.
Profit forecast and investment rating only Cyber has developed low temperature pretreatment nanofiltration membrane and membrane system equipment in the field of lithium extraction by membrane process, and the technology of lithium extraction from salt lake is expected to evolve to membrane process in the future; at the same time, the traditional water treatment field will develop to the trend of sewage resource utilization, but Saber is expected to continue to benefit. We estimate that the company's operating income from 2022 to 2024 is expected to reach RMB 416,000,000, with a year-on-year growth rate of 10 per cent, 95 per cent, 29 per cent, and net profit of 0.52 per cent, respectively, with a year-on-year growth rate of 2 per cent, 128 per cent and 36 per cent respectively. Corresponding to the 2022-2024 PE is 77-34-25 times, covering for the first time, giving "increase"
Rating.
The risk indicates that the research and development progress is not as expected, the COVID-19 epidemic situation is repeated, the expansion in the lower reaches of the industrial chain is not as expected, the company's performance is unstable, and the competition between membrane separation technology and other water treatment technology routes intensifies.