\u3000\u3000 Sunresin New Materials Co.Ltd Xi’An(300487) (300487)
Event overview
Event 1: on January 4, 2022, the company issued an announcement on receiving the signing notice of “10000 ton lithium carbonate EPC procurement project of Jinhai lithium industry (Qinghai)”.
Event 2: on January 11, 2022, the company signed a strategic cooperation agreement with Eve Energy Co.Ltd(300014) to jointly participate in the development of Chaka Salt Lake in Jieze, Tibet. The project includes the construction of 10000t / a lithium hydroxide production line in phase I, 20000T / A in phase II and 20000T / A in phase III.
Event 3: on January 24, 2022, the company released the performance forecast of 2021, which shows that it is expected to realize the net profit attributable to the parent company of 283-343 million yuan in 2021, with a year-on-year increase of 40% – 70%.
Analysis and judgment:
Then sign the large order of Qinghai Salt Lake to deepen the collaborative layout of the Salt Lake industrial chain.
On January 4, 2022, the company announced that it had received the signing notice of 10000t / a lithium carbonate EPC project of Jinhai lithium industry, a subsidiary of Eve Energy Co.Ltd(300014) , and the total contract price of the project was tentatively set at 456 million yuan; The implementation site is Dachaidan Industrial Park, circular economy Experimental Zone, Haixi Prefecture, Qinghai Province; The construction progress of the project is as follows: all construction and installation will be completed on August 31, 2022; On September 30, 2022, the whole system will be put into trial production; On October 30, 2022, it will be put into operation after reaching the standard. The project is another large-scale industrialization project of lithium extraction from Salt Lake realized by the adsorption method of the company’s independent intellectual property rights in Qinghai. The qualified products of the whole line design, construction and commissioning training of 10000t / a lithium carbonate project are planned to be completed within one year, which is an improvement of the adsorbent and whole line technology of the company’s independent intellectual property rights. At the same time, the owner is an enterprise Eve Energy Co.Ltd(300014) in the new energy industry chain, which reflects the industry giants’ further affirmation of the company’s technology. At the same time, the implementation of the project will help to further consolidate the market position of the company’s salt lake lithium extraction business and improve the layout and coordination of the industrial chain.
Entrusted processing & revenue sharing mode, Tibet Jieze Chaka Salt Lake project has started a new journey.
The company announced on January 11, 2022 that it plans to participate in the development of Xizang Jieze Chaka Salt Lake with Eve Energy Co.Ltd(300014) . The project plans to complete the construction of 10000t / a lithium hydroxide production line by December 2023, strive to produce and sell up to standard products by October 2022, and strive to reach 1000 tons by the end of 2022. The project adopts the mode of entrusted processing. Guoneng mining is responsible for providing brine resources and public supporting facilities such as fresh water, electricity and plants, and paying the entrusted processing fee and product sales revenue share to the company. The project is the first industrialization breakthrough in Tibet after the company’s salt lake lithium extraction technology has realized several large-scale industrialization projects in Qinghai. It is expected to become a large-scale industrialized salt lake lithium extraction demonstration project in Tibet in the future, which is of great significance to the industrialization of lithium extraction from brine with high altitude, low magnesium lithium ratio and high lithium content, At the same time, the “entrusted processing + revenue sharing” mode agreed in the contract for a period of 15 years is conducive to the company to enjoy the dividend of lithium salt maintaining a high price in the environment of continuous prosperity of new energy in the future.
Profits meet expectations and embrace the large cycle of lithium extraction in salt lake.
In 2021, the company’s production and sales of adsorption and separation materials increased, the income of downstream application fields such as metal resources, life sciences, water treatment, ultra purification and environmental protection increased, the profitability sustainability and stability increased, and the performance met our expectations.
According to the company’s historical announcement, as of the release date of the report, the company has completed the following large-scale lithium extraction projects in Salt Lake: cangge 10000 t / a technical transformation project, with a contract amount of 578 million yuan; The contract amount of Jintai phase I 3000t / a whole line project after changing the payment mode is 326 million yuan; Minmetals Yiliping 1000t / a technical transformation project. At present, the company is in the process of extracting lithium from large-scale salt lakes. The orders are as follows: Jintai phase II 4000t / a whole line project, with a contract amount of 274 million yuan; Minmetals Yiliping 4000t / a technical transformation, with a contract amount of 49.7 million yuan; Eve Energy Co.Ltd(300014) Dachaidan Salt Lake 10000t / a whole line project, with a contract amount of 456 million yuan; Tibet Urban Development And Investment Co.Ltd(600773) Jieze Chaka Salt Lake phase I 10000t / a lithium hydroxide whole line project. At the same time, the company’s pilot projects include: Qinghai Salt Lake Industry Co.Ltd(000792) “pilot test and research project for efficient separation of lithium precipitation mother liquor in Salt Lake”, 600 ton lithium carbonate pilot test and supporting boron removal pilot production line of China blue Changhua Design Institute ( Byd Company Limited(002594) ), complete set of 10000 ton / year ed concentrated water deep magnesium removal unit of Minmetals Salt Lake project and other large-scale industrial projects. In addition, the company actively explores the overseas Salt Lake market, collects brine from different countries and regions for small-scale test, and provides customized pilot test equipment and technical feasibility schemes for salt lakes in South America, Europe and North America. Typical customers include sqm (Chile), ansson (United States), Vulkan (Europe), etc.
Investment advice
In 2021, the company’s water treatment sector continued to expand, and high-end fields such as life sciences and ultra pure water continued to make efforts. In 2022, the company has continued to sign lithium extraction contracts for large salt lakes. We kept the profit forecast for 2021 unchanged and raised the profit forecast for 2022-2023. It is estimated that the operating revenue of the company from 2021 to 2023 will be 1.239/1.785/2.249 billion yuan respectively (1.239, 1.635 and 2.175 billion yuan respectively before), with a year-on-year increase of 34.3%, 44.1% and 37.2%, and the net profit attributable to the parent company will be 3.33/5.04/710 billion yuan respectively (333, 443 and 596 million yuan respectively before), with a year-on-year increase of 64.9% / 51.2% / 40.9% and EPS of 1.52/2.29/3.23 yuan respectively, Corresponding to the closing price of 95.22 yuan on January 28, 2022, PE is 63 / 42 / 29 times respectively. We are optimistic about the company’s integrated and differentiated competition mode of “materials + equipment + services” in the future. The production and marketing of new product lines will continue in large quantities. The lithium extraction from Salt Lake will start a new journey, and the life science sector will open up growth space. In the future, it will enter a stage of rapid development and maintain the “buy” rating.
Risk tips
The downstream demand is less than expected, the expansion progress of overseas projects is less than expected, and the progress of Salt Lake projects is less than expected.
