\u3000\u3000 Suzhou Ta&A Ultra Clean Technology Co.Ltd(300390) (300390)
Event: Suzhou Ta&A Ultra Clean Technology Co.Ltd(300390) disclosure of 2021 annual report. The company achieved an annual operating revenue of 3.398 billion yuan, a year-on-year increase of 158.73%, excluding the impact of epidemic prevention materials, a year-on-year increase of + 328.25% (the income of epidemic prevention materials was 520 million yuan in 2020 and 02 million yuan in 2021); The net profit attributable to the parent company was 911 million yuan, a year-on-year increase of + 218.44%; Deduct 860 million yuan of net profit not attributable to the parent company, a year-on-year increase of + 274.50%. In a single quarter, the revenue of 2021q4 company was 1.076 billion yuan, an increase of 20.76% month on month and 331.46% year-on-year; The net profit attributable to the parent company was 360 million yuan, with a month on month increase of 51.26% and a year-on-year increase of 540.95%. Deducting the net profit not attributable to the parent company was 363 million yuan, with a month on month increase of 55.13% and a year-on-year increase of 6491.76%.
The significant increase in performance was mainly due to the rise in the volume and price of lithium salt, and the steady growth of anti-static ultra clean products and medical devices. Excluding the impact of epidemic prevention materials: 1) new lithium salt business: the revenue in 2021 was 2.316 billion yuan, accounting for 68.21%, and the contribution of revenue growth was 176.39%. Volume: the design capacity of lithium hydroxide in phase I of Tianyi lithium industry is 20000 tons. At present, it has been produced at full capacity, with an annual output of 23600 tons, an estimated sales volume of 23000 tons and an inventory of 1400 tons; Price: the average sales price of the company’s products is expected to be 113600 yuan / ton (including tax), which is basically consistent with the annual average price of 119200 yuan / ton of Baichuan Yingfu, and the annual net profit per ton is about 47000 yuan / ton. 2) Anti static ultra clean technology business: the electronics industry at home and abroad has been impacted as a whole. While maintaining its existing customers steadily, the company actively develops new businesses for customers in biomedical, semiconductor and other fields. In 2021, the revenue was 624 million yuan, accounting for 18.37%, with a year-on-year increase of + 13.1%; 3) Medical device business: Yushou medical, a wholly-owned subsidiary, has passed the mdsap audit and certification, and many products have obtained new registration certificates. Various specifications of syringes have passed the PQS evaluation of the World Health Organization (who), expanding the business scope of medical devices. In 2021, the revenue was 456 million yuan, accounting for 13.42%, with a year-on-year increase of + 88.7%.
Lithium salt was the core of gross profit, accounting for 78%, and the total gross profit margin rose sharply by 11.56pct to 51.1%. 1) Gross profit & net profit of each sector (excluding epidemic prevention materials): in 2021, the gross profit of lithium salt business increased by 1.359 billion yuan, accounting for about 78.3%, the gross profit margin was 58.67%, and the net profit was 1.081 billion yuan, with a net profit margin of 46.7%; The gross profit of medical device products was 214 million yuan, an increase of 104.6% at the same time, accounting for 12.3%. The gross profit margin was + 3.64pct to 47.0% year-on-year. The net profit was 165 million yuan and the net interest rate was 36.1%; The gross profit of anti-static ultra clean technology products was 162 million yuan, an increase of 14.6% at the same time, accounting for 9.4%. The gross profit margin was + 0.34pct to 26.0% year-on-year, realizing a net profit of 44.3768 million yuan and a net profit margin of 7.1%. 2) Total gross profit margin & net profit margin (excluding epidemic prevention materials): benefiting from the new lithium salt business with high gross profit margin, the gross profit margin of anti-static ultra clean products and medical devices increased year-on-year. In 2021, the total gross profit margin increased significantly by 11.56pct to 51.1%. At the same time, the cost rate during the dilution of scale effect increased significantly by 14.7pct to 36.82%, and the profitability improved significantly.
Tianyi phase II has been implemented rapidly, equity incentive is bound to the core backbone, and fixed increase helps accelerate the construction of lithium salt. The accelerated implementation of the 25000 ton battery grade lithium hydroxide project of Tianyi phase II has been put into trial production in December 2021, and qualified products have been produced. It takes only 7 months from construction to trial production, which is 4 months shorter than that of phase I. it once again explains the “Tianyi speed” of project construction in the lithium battery industry. If calculated according to the production rhythm of phase I, Phase II is expected to be put into operation by the end of March 2022, with an annual output of about 44000 tons, a year-on-year increase of 85.4%. On February 9, 2022, the company announced that it planned to implement the equity incentive plan to motivate the core backbone, and the first grant price was 70.39 yuan / share. On the same day, it was announced that it planned to raise 4.6 billion yuan through fixed raising, which was mainly used for subsequent lithium salt construction projects. At the same time, it planned to acquire 7% equity of minority shareholders of Tianyi lithium industry and increase the shareholding ratio to 75%
Investment suggestion: we predict that the net profit attributable to the parent company from 2022 to 2024 will be RMB 2.498/3.902/5.924 billion, corresponding to PE of 15.8/10.1/6.6, which is lower than the middle level compared with the same industry, maintaining the “buy” rating
Risk tip: product price fluctuations, the epidemic affects the end consumer demand, and the production capacity landing and production are less than expected
