Performance has improved steadily, and technological transformation has accelerated the release of production capacity.
The company's 22H1 realized revenue of 2.075 billion, an increase of 25.07%, and a net profit of 161 million, an increase of 107.37%. The company is a leading enterprise in the recovery of automotive intelligent equipment and lithium batteries. The company's technical renovation project is expected to reach production capacity of Q3, and the accelerated release of recovery capacity will lead to a rapid upward performance. Considering the tight supply of lithium resources, we increase the capacity utilization rate and production and sales rate of lithium carbonate. It is estimated that the company's net profit for 22-24 years will reach 3.21 billion yuan 4.91pm 7.32 million (the previous value 2.80 pounds 4.37 pounds), which is 31 times higher than the company's 22-year average PE. Considering the high level of waste battery recycling, the company will be given 35 times PE in 22 years, with a target price of 29.53 yuan (18.50 yuan). Maintain a "buy" rating.
The net profit of 22H1 is high, and the recovery business is outstanding.
The company's 22H1 realized revenue of 2.075 billion, an increase of 25.07%, and a net profit of 161 million, an increase of 107.37%.
The company's 22H1 intelligent equipment / lithium battery cycle / cycle equipment / heavy industry machinery plate revenue accounted for 34.21%, 39.33%, 11.88%, 13.90%, respectively, and revenue year-on-year + 13.55%, + 13.55%, 114.39%, 15.89%, 27.25%, respectively. Lithium battery cycle revenue increased sharply compared with the same period last year, and the market demand for lithium battery materials increased significantly. The company's 22H1 gross profit margin is 20.87%, year-on-year + 0.38pct, in which intelligent equipment / heavy industry machinery gross profit margin fell 4.10/6.30pct compared with the same period last year, mainly due to the rise in raw material prices. At present, the price of pig iron scrap resin is in a downward channel, and we expect the gross profit margin to increase in the second half of the year.
Technical renovation is expected to reach production capacity of Q3, and LFP recovery will speed up construction.
The company has a clear investment plan for battery recovery, regeneration, expansion, technical transformation and deepening of the industrial chain. According to the company's existing plan, the technical renovation project is expected to be put into production in Q3, and the disposal capacity of waste batteries will increase to 50,000 tons per year after reaching production. It is estimated that the annual production capacity of lithium carbonate and cobalt-manganese-nickel 22max will reach 3000kg and 712kt respectively. In addition, the company plans to invest 150000 tons of LFP recovery capacity, with a corresponding production capacity of 50,000 tons in Phase I / II, and the first phase is scheduled to be put into production in Q2 in 23, with an annual production capacity of 112.5 kilotons of iron phosphate / lithium carbonate. The company expects the overall 23-year production capacity of lithium carbonate and nickel-cobalt-manganese 22ram to correspond to 3 kilotons and 7 kilotons, respectively, and to ferric phosphate 23 to 11000 tons. The company leads the industry in the level of production capacity, and with the further expansion of production capacity, the company's production scale advantage will be further enhanced.
Speed up the construction of recovery channels and continuously strengthen the advantages of raw materials
At present, the biggest problem in the power battery recycling market is that the recycling channel is not perfect, and the continuous expansion of the channel is the most important cornerstone for the development of recycling enterprises. The company signed a strategic cooperation agreement with Haitong Hengxin in June to further lock in battery operator resources based on battery operating / financing leasing business. The company's previous cooperation covers the whole vehicle factory FAW Group, Internet + 's ToC channel JD.com Technology, light vehicle lithium electric leader Xing Heng Power, etc., helping the company to further strengthen the raw material advantage. The company makes use of existing customers, suppliers, partners and other resources to give full play to synergy and carry out diversified business cooperation in an innovative mode, which has laid a solid foundation for the company's long-term sustained and stable development.
Risk tips: the sales of new energy vehicles are not as expected, the progress of the project is not as expected, and the competition in the industry is intensified.