Main points of investment
The effect of corporate industrial cluster is obvious, and Yuemin contributes to the optimization of corporate governance. As an established investment and shareholding enterprise, for more than 40 years of development, the company has a strong ability of collaborative organization of cross-industry operation, as well as the ability to integrate related resources, and its business spans three fields: high and new technology, biomedicine and real estate. Yuemin invested 13.3% of its shares to become the largest shareholder, promoting the continuous optimization of corporate governance.
The holding subsidiary Betteri is the leading supplier of positive and negative electrodes of batteries.
Negative market share first: in 2018, Beitre ranked first in the world with a negative market share of 16%, and ranked third in shipments of high-nickel ternary cathode materials in 2019.
Rapid capacity expansion: Beitri's positive and negative production capacity is 42 million tons in 2020; it is estimated that in 2021-2023, Beitri's positive and negative production capacity is 42 million tons, 4.5 million tons and 17,235,000 tons respectively.
Deeply bind high-quality overseas customers: Bertre customers include Panasonic, Samsung SDI, LG Chemical, Ningde Times, etc., 60% of which are overseas battery factories; in 2020, Panasonic contributed a rapid increase in revenue from 8% to 26%, and is Panasonic's main supplier of cylindrical batteries for Tesla, Inc..
In terms of volume premium, revenue continues to increase: the net profit per ton of Beitre anode materials in 2018-2020 is 0.66 million yuan per ton, and the trend is basically consistent with the price trend. The price decline is superimposed by a relatively high expense rate during 2020, resulting in a large decline in net profit per ton in 2020. It is expected that the scale effect will be formed with the increase of future production capacity and shipments, as well as a lot of direct cost savings from continuous graphitization. The net profit per ton will pick up somewhat.
In 2021-2023, Bertre's revenue is estimated to be 82.2 million yuan, with a net profit of 1.31 billion yuan, 2.34 billion yuan, and 2.34 billion yuan, respectively. It is estimated that in 2021-2023, China Baoan's revenue will be 149.3 billion yuan, and its net profit will be 2.72 billion yuan, corresponding to the latest closing price of PE in 79-40-30, covering for the first time and giving it a "prudent overweight" rating.
Risk hint: sales of new energy vehicles fall short of expectations; shipments of positive and negative materials fall short of expectations