Main points of investment

Next Monday (July 24), there is a gem listed company "Menggu Li" inquiry.

Menggu Li (301487): the company's main business is the research and development, production and sales of lithium battery cathode materials, the main products are lithium cobalt and ternary materials. From 2020 to 2022, the company achieved operating income of 1.646 billion yuan / 2.827 billion yuan / 3.234 billion yuan, YOY of 3.69%, 71.77% and 14.40%, respectively, with a compound annual growth rate of 26.77%. The company realized a net profit of 80 million yuan / 105 million yuan / 92 million yuan, and the YOY was 1107.30%, 30.74% and 11.67%, respectively, and the company turned into a profit from 2020. During the latest reporting period, 2023Q1 achieved an operating income of 611 million yuan, down 37.53% from the same period last year, and a net profit of 14 million yuan, down 47.62% from the same period last year. According to the preliminary forecast, from January to June 2023, the company is expected to achieve a net profit of 41.2 million yuan to 43.1 million yuan, a year-on-year change of-39.79% to-37.01%.

Investment highlights: 1. The company is the only subsidiary of Hentong Group that focuses on lithium battery cathode materials, and currently forms a strong leading edge in the field of lithium cobalt oxide cathode materials. Hengtong New Energy, the company's controlling shareholder, is the holding platform of Hentong Group, which specializes in new energy battery cathode materials and new energy automobile parts, and the company is the only enterprise focusing on lithium cathode materials. Hentong Group's current business covers optical fiber network, smart grid, new energy and new materials and other fields, is one of the top 100 private enterprises in China with more than 70 holding companies. Since 2000, the company has been deeply ploughing the field of cathode materials for lithium battery. with the help of the rich platform resource sharing advantages of shareholders, the company has become one of the major suppliers of cathode materials for lithium batteries in China. and form a more obvious leading advantage in the field of lithium cobalt cathode materials. In terms of production and marketing scale, according to Xinhuo information statistics, the company's sales scale of lithium cobalt cathode materials ranked among the top four in China from 2020 to 2022. In terms of technology, the company conforms to the high-voltage development trend of lithium cobalt oxide earlier, the 4.45V product has been developed and shipped in batch, the 4.48V product has passed the customer certification such as Ningbo Vico battery and formed a small batch, and the 4.53V product has also been certified in the pilot stage by customers such as Guanyu in Zhuhai. the successive launch of new products is expected to further consolidate the company's leading position in the field of lithium cobalt cathode materials. 2. The company is one of the few ternary material suppliers with batch supply capacity of high nickel series products in China.

At present, the excess capacity of the ternary material industry is mainly concentrated in the middle and low end, while in the high-end areas, such as high-nickel series ternary material market segment, the competition pattern is relatively good. The company's ternary material products began mass production in 2014 and entered the supply chain of power battery enterprises. in order to create a differential competitive advantage, the company mainly focuses on high-nickel products, such as Ni8 and Ni9 series products. During the reporting period, the company's Ni8 series polycrystalline products have been shipped in bulk in the power tools and two-wheeler cylindrical battery market. And Ni8 series single crystal and Ni90 single crystal products have also passed the product performance certification of Zhuhai Guanyu, Ningde Times and other manufacturers, and successfully realized the industrialization of high nickel products.

Compared with listed companies in the same industry: the company focuses on the field of cathode materials for lithium batteries; according to the similarity of its main business, we select Rongbai Technology, Dangsheng Technology, Xiamen Tungsten Xinneng, long-term Lithium and Zhenhua New Materials as comparable listed companies. From the above comparable companies, the average income of comparable companies in 2022 is 22.41 billion yuan, comparable PE-TTM (arithmetic average) is 16.36X, and sales gross profit margin is 12.63%. Comparatively speaking, the company's revenue scale and gross profit margin are lower than the average of comparable companies.

Risk hint: companies that have started the inquiry process still have the possibility of not being listed due to special reasons, the company content is mainly based on prospectuses and other public materials, and the selection of listed companies in the same industry is not accurate. Risk, content data interception may have interpretation deviation and so on. The specific risks of listed companies are shown in the text.