Performance
On April 9, the company released its annual report that in 2021, the company achieved operating income of 4.05 billion yuan, an increase of 112% over the same period last year, and its mother's net profit was 350 million yuan, an increase of 73% over the same period last year.
Analysis.
Lithium iron phosphate is still in a state of insufficient supply in the fourth quarter, leading to a substantial increase in the company's product profits. The company had previously issued a pre-increase announcement for 2021, and this performance was close to the range. Driven by the lithium iron phosphate business, the company achieved a net profit of 157 million yuan in the fourth quarter, a substantial increase compared with the previous quarter, of which the company sold 15500 tons of lithium iron phosphate in the fourth quarter. there is a further improvement compared with the third quarter, while the supply of lithium iron phosphate business is still tight. The price of superimposed raw materials, especially the price of lithium carbonate, continues to rise, and the company's advance inventory has also increased the profit margin of its products. Since the first quarter of this year, the price of lithium carbonate is still on an upward trend until it has stabilized in the last two weeks, and it is expected that the raw material inventory in the first quarter will also boost the performance in the first quarter, and the company will continue to release lithium iron phosphate production capacity this year. It is expected that the company will increase production capacity by more than 110000 tons at the end of the year, superimposed by the relative tight supply of lithium iron phosphate in the early part of this year, and it is expected that lithium iron phosphate will still contribute to the core increment.
The price of raw materials has increased, and the profits of automotive urea are under pressure to a large extent, and it is expected that there will be a gradual improvement this year.
Affected by the continuous rise in raw material prices in 2021, the cost pressure of the company's automotive urea business increased greatly. according to estimates, the profit per ton of automotive urea remained above 200 yuan in the first half of the year, but in the second half of the year, the profit per ton has declined by at least half, making the company's overall business under relative pressure, while superimposed on the impact of many factors, such as industry competition, the postponement of the sixth national policy and so on. The annual sales volume is about 450000 tons, an increase of about 70,000 tons month-on-month. It is expected that the overall cost pressure in 2022 will improve in the later stage, and product sales will increase with the implementation of country 6.
Investment suggestion
The company grasps the demand trend of lithium iron phosphate and speeds up capacity construction. after the merger and acquisition of Beitri, it has successively formed a number of industrial chain production bases in Jiangsu, Tianjin, Sichuan and Shandong, and carried out deep ploughing in the field through capacity construction and industrial chain cooperation. it is expected to enter a stage of rapid increase in production and sales, raising the company's profit forecasts for 2022 and 2023 by 26% and 19%. It is predicted that the return net profit of the company from 2022 to 2024 is 748 million yuan, 895 million yuan and 1.065 billion yuan respectively, the EPS is 1.55,1.86,2.21 yuan respectively, and the corresponding PE is 16,14,11 times respectively.
Risk hint
The process of building new production capacity is not up to expectations, and intensified competition in the industry has led to the reduction of risks in industrial profits.