Main points of investment
Huafeng Aluminum Industry is the leading material of domestic high-end heat transfer aluminum plate, strip and foil. Since its establishment, Huafeng Aluminum has focused on the production and research of high-end heat transfer aluminum sheet, strip and foil materials, including aluminum alloy strip and foil materials in the field of heat transfer. Widely used in automobiles, construction machinery, power stations and household commercial air conditioning heat exchange systems. The business covers world-renowned auto parts suppliers such as Mercedes-Benz, BMW and Tesla, Inc., such as Japan Denso and Germany Mahler, as well as new energy heat exchange manufacturers such as Sanhua, Yinlun and Nabachuan.
The existing production capacity is 350000 tons and is expected to reach 500000 tons in 2025. At present, we have set up an annual production base of 14-150000 tons in Shanghai and a production base of 200000 tons in Chongqing. The company now has a total production capacity of 34-350,000 tons per year. At the same time, the company plans to build the second phase of Chongqing "annual output of 150000 tons of high-end aluminum plate, strip and foil project for new energy vehicles", which is expected to be put into production by the end of 2024, when the company will have about 500000 tons of aluminum alloy plate, strip and foil production capacity.
Continuous years of rapid growth, the company's excellent performance. In 2022, the company achieved revenue of 8.545 billion yuan, an increase of 32.5% over the same period last year, and a net profit of 666 million yuan, an increase of 33.1% over the same period last year. Mainly due to the rapid development of the new energy industry, the volume and price of the company's products have risen.
2023Q1 realized revenue of 1.997 billion yuan, up 0.6% from the same period last year, down 10.0% from the previous year, and realized a net profit of 170 million yuan from the same period last year, up 65.0% from the same period last year and 14.1% from the previous year.
New energy vehicles promote the steady growth of aluminum heat transfer, energy storage, data centers to open up new demand.
At present, the consumption of aluminum heat transfer materials in traditional fuel vehicles is 8kg, and the amount of aluminum heat transfer materials in new energy vehicles will reach 15kg. It is estimated that the global demand for aluminum heat transfer materials in vehicles will reach 860000 tons in 2025, with an annual compound growth rate of 5%. At the same time, the performance of liquid cooling is better than that of air cooling. With the rapid development of energy storage and data center, thermite transfer materials are expected to usher in the dual benefits of permeability improvement instead of air cooling and rapid development of downstream applications.
Huafeng aluminum industry has the first profitability in the world, and is expected to be Hengqiang. Among the global aluminum heat transmission enterprises, Grangis and Huafeng Aluminum are equal, each with a 25% market share, tied for the first place.
Compared with Grangis and Yinbang shares in the same industry, Huafeng Aluminum's gross profit margin and net profit margin are significantly higher than both. In view of the fact that aluminum plate, strip and foil products in the field of new energy vehicles generally have high requirements for plate shape and quality, various categories, high customer certification barriers and strict quality management system certification, Huafeng Aluminum has excellent competitive advantages. Hengqiang is expected to achieve the strong. At the same time, the company actively arranges battery shell, battery foil and so on, keeping an eye on new energy cutting-edge products.
Profit forecast
It is estimated that the 2023-2025 net profit of Huafeng Aluminum Co., Ltd. will be 824Universe 10.01RMB1.159 million, up 23.71%, 21.52%, 15.84%, corresponding to EPS 0.82, 1.00, 1.16, and PE, 17.48, 14.39, 12.42 times. Maintain a "buy" rating.
Risk hint
The progress of the project fell short of expectations, the demand for new energy vehicles fell short of expectations, macroeconomic growth slowed, and the introduction of energy storage and data center markets fell short of expectations.