On January 27, Contemporary Amperex Technology Co.Limited(300750) disclosed a performance forecast of “burst”.
The performance forecast shows that Contemporary Amperex Technology Co.Limited(300750) is expected to have a net profit of 14-16.5 billion yuan in 2021, with a year-on-year increase of 150.75% – 195.52%. Among them, the net profit in the fourth quarter of 2021 is expected to be 6.249 billion yuan – 8.749 billion yuan, equivalent to the total net profit in the first three quarters, with a significant increase of 91% – 167% month on month.
Previously, the average profit forecast of many institutions for Contemporary Amperex Technology Co.Limited(300750) 2021 was 11.23 billion yuan, with a year-on-year growth rate of 101.14%. This also means that the performance of Contemporary Amperex Technology Co.Limited(300750) far exceeded market expectations.
“ningwang” performance exceeded expectations
According to the performance forecast for 2021, the net profit attributable to shareholders of listed companies is expected to be 14 billion yuan to 16.5 billion yuan in 2021, with a year-on-year increase of 150.75% to 195.52%. This is the highest net profit level since Contemporary Amperex Technology Co.Limited(300750) was listed in 2018.
In the fourth quarter of 2021, the net profit of Contemporary Amperex Technology Co.Limited(300750) is expected to be 6.249 billion yuan – 8.749 billion yuan, an increase of 91% – 167% month on month, equivalent to the total net profit of the first three quarters, setting a new high in the net profit of a single quarter.
Contemporary Amperex Technology Co.Limited(300750) said that the market penetration of new energy vehicles and energy storage increased in 2021, driving the growth of battery sales; The company has made progress in market development, released new production capacity and increased production and sales accordingly; At the same time, the company strengthened cost control and reduced the proportion of expenses in revenue.
The average profit forecast for Contemporary Amperex Technology Co.Limited(300750) 2021 by many institutions was 11.23 billion yuan, with a year-on-year growth rate of 101.14%. Thus, Contemporary Amperex Technology Co.Limited(300750) the lower limit of profit in this performance forecast has greatly exceeded the general expectation of the market.
As of the closing on January 27, Contemporary Amperex Technology Co.Limited(300750) reported 574.99 yuan / share, with a market value of 1340.2 billion yuan.
Tianfeng Securities Co.Ltd(601162) pointed out that the price rise of upstream materials in the new energy battery industry has led to an increase in the cost of power batteries; The downstream new energy vehicle consumption is strong, and the price of the whole vehicle has begun to rise, and the power battery may be at a favorable price to the downstream; Contemporary Amperex Technology Co.Limited(300750) power battery may usher in a new incremental market after entering the Bureau for power replacement; New energy batteries may usher in a new round of price rise.
the biggest competitor of “ningwang” is listed today
It is worth noting that South Korean battery manufacturer LG new energy is listed on the Korean stock exchange today. LG new energy is considered to be Contemporary Amperex Technology Co.Limited(300750) the world’s largest competitor.
On the first day of listing, LG new energy shares rose 99% at the opening. The IPO price was set at 300000 won per share, issued 42.5 million shares and raised 12.75 trillion won, setting a record high in the scale of IPO in South Korea.
Statistics show that LG new energy is a wholly-owned subsidiary of LG Chemical, a leading power battery enterprise in South Korea, and a battery supplier of Tesla, general motors and other automobile brands. According to SNE research, LG new energy has a market share of 20.5% in the global electric vehicle battery market, ranking second only to 31.8% of Contemporary Amperex Technology Co.Limited(300750) .
Kwon young soo, CEO of LG new energy, said publicly that the backlog of orders worth 260 trillion won highlighted the growth potential of LG new energy. Considering that more battery orders have been received, it is expected that the global market share will exceed Contemporary Amperex Technology Co.Limited(300750) , becoming the first in the world. LG new energy has a wider customer base, while Contemporary Amperex Technology Co.Limited(300750) operates factories only in China.
LG new energy will use this IPO to accelerate its global expansion. LG new energy said in the prospectus that in addition to the plan to develop new products and build smart factories to improve product quality, all the rest will be used to expand production. By 2025, the company plans to invest 8.85 trillion won in its battery factories in South Korea, Poland, the United States and China, nearly doubling its production capacity to 400 gigawatt hours (GWH).
industry competition intensifies
The explosive growth of new energy vehicle industry and the increase of global energy storage demand have driven the rapid development of power battery industry, and the industry competition is becoming more and more fierce.
In terms of production capacity, Contemporary Amperex Technology Co.Limited(300750) has obvious advantages. According to the Research Report of Citic Securities Company Limited(600030) , Contemporary Amperex Technology Co.Limited(300750) takes Ningde, Fujian Province as the center. At present, it has five R & D centers and ten production bases. By the end of 2021, the company’s production capacity (sole proprietorship + joint venture) is about 235gwh. It is expected that the total production capacity of the company will exceed 800gwh by 2025. According to the prospectus, LG new energy mainly builds a global production base with “five pillars” of China, South Korea, the United States, Europe and Indonesia. It is estimated that the total production capacity (sole proprietorship + joint venture) will be about 450gwh by 2025.
In terms of customer groups, LG new energy mainly supplies overseas markets, and its main customers include GM, Volkswagen, Renault, Hyundai and other auto enterprises. According to the data released by the China Shipbuilding Industry Group Power Co.Ltd(600482) battery alliance, from January to December 2021, the loading volume of LG new energy in China Shipbuilding Industry Group Power Co.Ltd(600482) battery enterprises was only 6.25gwh, ranking fifth, with a market share of 4%, far lower than the first Contemporary Amperex Technology Co.Limited(300750) 80.51gwh.
Contemporary Amperex Technology Co.Limited(300750) the overseas market is also accelerating its expansion. The data show that from January to November 2021, Contemporary Amperex Technology Co.Limited(300750) China’s customer installed capacity concentration further decreased, and the installed capacity of the top ten customers accounted for 43.2% in total, a decrease of about 7.9 percentage points compared with 51.1% in 2020; Installed customers include Tesla, Weilai, Xiaopeng, ideal car, etc.
In terms of technical route and resource layout, Contemporary Amperex Technology Co.Limited(300750) ternary battery and lithium iron phosphate battery go hand in hand, and constantly develop new technologies and products such as sodium ion battery, AB structure battery and chocolate battery power exchange brand; It also participates in all links of the industrial chain such as lithium ore, lithium battery materials and complete vehicles by means of investment and equity participation, locking long orders and joint venture. LG’s new energy technology layout mainly focuses on ternary batteries, and iron lithium products are still in the development stage; Adopt strategic cooperation and sign long-term agreements to distribute resources.
Citic Securities Company Limited(600030) pointed out that Contemporary Amperex Technology Co.Limited(300750) has cost advantages over LG new energy, and the gross profit margin of power battery is about 9 percentage points higher than LG new energy. In terms of valuation, in recent three years, Contemporary Amperex Technology Co.Limited(300750) has an average PE valuation of about 101 times, an average Pb valuation of about 8.7 times, and the gem index has an average PE valuation of about 58 times in recent three years; The average PE valuation of Korea’s Kospi composite index in recent three years is only 19 times. Contemporary Amperex Technology Co.Limited(300750) is easier to obtain higher valuation, and the financing channel and scale are more advantageous than LG new energy.
Citic Securities Company Limited(600030) it is estimated that the global demand for new energy vehicle power batteries is expected to reach 1380gwh in 2025, with high growth certainty, large space and fast growth. In the field of energy storage, the global demand for energy storage batteries will be about 55gwh in 2021, and it is expected that the global demand for energy storage batteries will be about 500gwh by 2025, and the industry will enter an explosive period.
