\u3000\u3000 Yongxing Special Materials Technology Co.Ltd(002756) (002756)
Events
On February 15, Jiangxi Yongxing new energy, a wholly-owned subsidiary of the company, signed a letter of intent for cooperation with Jiangxi tungsten industry. In order to give full play to the technical advantages of Jiangxi Yongxing new energy and the resource advantages of Jiangxi tungsten industry, it is proposed to establish a joint venture to build a lithium carbonate project with an annual output of 20000 tons.
Commentary
The joint venture holds 49% of the shares and supplies products to Ningde. The equity ratio of the joint venture is 49% of Jiangxi Yongxing new energy and 51% of Jiangxi tungsten industry; The planned capacity of lithium carbonate production line is 20000 tons per year. The project is implemented in two phases, of which the first phase is constructed with an annual output of 10000 tons of lithium carbonate. Jiangxi tungsten industry is responsible for providing the supply guarantee of lithium mica raw materials. The company is responsible for providing the technical guarantee for the preparation of battery grade lithium carbonate from lithium mica, and the output battery grade lithium carbonate is supplied to Contemporary Amperex Technology Co.Limited(300750) .
Yichun Tantalum niobium mine is rich in reserves and the project resources are guaranteed. Yichun Tantalum niobium mine (414 mine) mining right belongs to Yichun Tantalum Niobium Mine Co., Ltd., which is controlled by Jiangxi tungsten industry group, and the actual controller is Jiangxi SASAC. The resource reserves are 142.13 million tons, the content of Li2O is 547000 tons, the average grade is 0.38%, the production scale is 2.31 million tons / year, the annual production of lithium mica (equivalent to 5%) is 120000 tons, lithium feldspar is 1.08 million tons, and the annual production capacity of LCE is 15000-20000 tons.
For a new round of fermentation with independent and controllable logic of lithium ore, the market should give mica lithium extraction faucet a full premium. The mica pattern in Jiangxi is beginning to be clear, and the supply volume will exceed that of Salt Lake and Sichuan mine in the next two years. From the industrialization brought by cost reduction to the formation of a certain volume and industrial scale, the speed of mica will continue to exceed market expectations. The company has previously announced the cooperation with Ningde to build 50000 tons of lithium carbonate and 15000 tons of equity production capacity; In addition, the corresponding equity of 49% equity is nearly 10000 tons, and the growth problem previously worried by the market is further solved. The company’s executive power continues to exceed expectations and continue to deliver. As one of the lithium targets with growth, lowest valuation and most certain performance, it is emphasized that valuation premium should be given.
Profit forecast & investment suggestions
It is estimated that the net profit attributable to the parent company in 21-23 years will be 900 million yuan, 4086 million yuan and 4933 million yuan respectively, with corresponding EPS of 2.22 yuan, 10.07 yuan and 12.15 yuan respectively, and corresponding PE of 42 times, 9 times and 8 times respectively, maintaining the “buy” rating.
Risk tips
Downstream demand is lower than expected; The new capacity and re production capacity of lithium ore exceeded expectations.
