Events:
According to the official website of Lubei Group, the signing ceremony of cooperation between Lubei Group and Juze assets New Energy Industry Fund was solemnly held on September 6. Shandong Lubei Enterprise Group Corporation and Juze Asset Management (Shanghai) Co., Ltd. set up a new energy industry fund to invest in equity in Wudi Golden Bay Lithium Industry Technology Co., Ltd., which is used for the construction and development of 20,000 tons of lithium carbonate per year.
Main points of investment:
Lithium carbonate project landed, taking a solid step towards a new material for lithium battery. The fund size of Lubei Group and Juze Asset Management Energy Industry Fund is 260 million yuan, of which the inferior capital is 60 million yuan, which is jointly subscribed by both parties, and the priority capital is 200 million yuan, which is raised by Juze assets with a duration of 3 years. The fund is managed by Juze assets, and the project built is operated by Lubei Group. The project has a total investment of 260 million yuan and is designed to produce 20000 tons of new lithium carbonate materials per year, of which the main products are 16000 tons of battery-grade lithium carbonate, 4000 tons of lithium hydroxide monohydrate (of which 1386 tons are used to produce high-purity lithium carbonate) and 1000 tons of high-purity lithium carbonate. the by-products are mainly Yuanming powder and calcium slag. Calcium slag can be used to produce sulfuric acid cement from gypsum in Lubei Chemical Co., Ltd., which can realize the comprehensive utilization of resources. The total investment return rate of the project is 30.75%, the project investment profit margin is 29.58%, the after-tax financial internal rate of return of the project is 25.71%, and the payback period of the project investment after income tax is 4.78 years. It has good economic and social benefits, which lays a solid foundation for the construction of Lubei lithium battery new material base.
Cooperation in the new energy industry continues to advance, and the reform of state-owned enterprises is about to emerge. At the beginning of the year, Lubei Chemical and Jinjiang Group, Hengjie Industry and Hangzhou Golden Investment launched the establishment of a new materials and new energy industry fund with a total amount of 1.001 billion yuan, mainly invested in the field of new materials and new energy. Including but not limited to lithium-ion battery materials projects, coal tar hydrogenation projects, electronic special gas projects. The establishment and later operation of the industrial fund will further accelerate the pace of the company's integration of industry and finance, and the company's layout in the field of new energy materials is becoming increasingly clear. On July 15, 2016, the company introduced War Investment Jinjiang Group in the form of capital increase and share expansion, which holds a 44.5% stake in Lubei Group. After taking a stake in Lubei Group, Jinjiang Group has substantially participated in part of the operation and management of Lubei Group, including a series of state-owned enterprise reform measures.
Change the kinetic energy between the old and the new, and step into the fast lane of enterprise development. The overall operating situation of the company's traditional main business is good, with revenue of 263 million yuan in the first half, an increase of 4.75% over the same period last year, and net profit of 26.8671 million yuan, an increase of 108.86% over the same period last year. With the continuous promotion of environmental supervision and inspection, the market prices of some products have picked up quickly. The company continues to strengthen fine management and systematic technical transformation, the company's overall business performance has increased significantly. At the same time, the company continues to make phased breakthroughs in the field of new energy and technological innovation. The landing of the 20,000-ton lithium carbonate project will further accelerate the company's expansion in new materials and new energy industries.
Profit forecast and investment rating: maintaining the buy rating does not take into account the contribution of the company's new business development and state-owned enterprise reform. The company's EPS from 2017 to 2019 is expected to be 0.13,0.15,0.18 yuan respectively. We continue to be optimistic about the company's layout in the field of new energy materials and the market demand for major products in the traditional main industry continues to improve, and sales prices are rising steadily. Maintain a "buy" rating.
Risk hints: the progress of the project is not as expected; the recovery of downstream products is not as expected; the uncertain impact of the reform of the company's state-owned enterprises.