Multiple factors put pressure on performance and abundant funds to ensure future growth. The company released three quarterly results for 2022: 2022Q1-3 achieved revenue of 506 million yuan (+ 55.26%), net profit of 18.91 million yuan (- 7.56%), and net profit of 10.42 million yuan (- 9.76%) in the third quarter. The impact of the epidemic led to the extension of the project period, intensified competition, the exploration of demonstration projects in new areas and other factors, the company's performance declined slightly in the first three quarters. As of the end of 2021, the monetary capital of 2022Q3 has increased by 146% to 212 million yuan, with sufficient funds to ensure future growth.
The capacity of 2000 t / a self-developed adsorbent is expected to increase, and join hands with Zijin to accelerate the extraction of lithium by "adsorption + membrane method". In 2018, the company won the bid for Minmetals project and the core process package for lithium extraction from salt lake; in January 2022, the company set to raise 103 million yuan and successively signed Zabuye 100t / yr lithium hydroxide pilot test and Jinhai lithium industry 1000 t / yr lithium chloride project; in September, it signed the Bangua Co Salt Lake adsorption Coupling membrane process Lithium extraction Technology Development Agreement with Zhongxin in Tibet, which is expected to provide the core process package of "adsorption + membrane method" for the 10,000-ton lithium chloride project. It is worth noting that in the field of adsorbents with higher barriers, the company broke through the self-developed industrial production capacity of 2000 tons per year this year, and reached a strategic cooperation with Zijin Mining Group, which will accelerate the release of lithium from the salt lake under the combination of technology and resources.
Domestic ceramic membrane bibcock, steady expansion in various fields. The company is incubated in the membrane Science and Technology Laboratory of Nanjing University of Technology and is the leader of ceramic membrane industry. Benefiting from the vigorous development of new orders, the overall treatment scheme of 2022H1 membrane integration technology achieved revenue of 231 million yuan (year-on-year + 48.86%). 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 200000 tons / year), industrial water treatment and lithium extraction from salt lakes made steady progress. Profit forecast and investment advice. It is estimated that the return net profit of the company from 2022 to 2024 will be 0.500.85 / 124 million yuan respectively, and the PE corresponding to the latest closing price will be 80.33Comp47.4532.52 times respectively. The core process package of lithium extraction by card position, the joint efforts of emerging downstream in many fields, gives the company a valuation of 50 times PE in 2023, corresponds to the reasonable value of 34.72 yuan per share, and maintains 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.