\u3000\u3000 Eve Energy Co.Ltd(300014) (300014)
Conclusions and suggestions:
According to the announcement of the company, the company signed the cooperation agreement on the whole industry chain project of new energy battery with Yuxi Municipal People’s Government of Yunnan Province, Yunnan Energy New Material Co.Ltd(002812) , Huayou holding and Yunnan Yuntianhua Co.Ltd(600096) on February 16. Both parties will jointly establish two companies to engage in mineral resource development and mineral deep processing respectively; In addition, the company will also invest in battery capacity in Yuxi.
The company’s power battery, energy storage battery and consumer battery products have huge growth space. In terms of power batteries, the company has the production capacity of square, soft pack and large cylindrical batteries. Its products are cut into high-quality companies such as BMW and Xiaopeng, and the shipment is expected to continue to grow; The company’s energy storage battery capacity has expanded rapidly and will usher in a large-scale stage this year; In terms of consumer batteries, the company has obvious competitive advantages, products are in short supply, and will continue to maintain high gross profit. We expect the net profits of the company in 2021, 2022 and 2023 to be 2.85 billion yuan, 4.01 billion yuan and 5.63 billion yuan respectively, yoy to be + 72.4%, + 40.7% and + 40.5% respectively, and EPS to be 1.51 yuan, 2.12 yuan and 2.98 yuan. The current share price corresponds to 56 times, 40 times and 29 times P / E in 2021, 2022 and 2023 respectively. It is recommended to “buy”.
The company participated in the construction of new energy battery industry cluster in Yuxi, Yunnan Province: according to the company’s announcement, the company signed the cooperation agreement for the whole industry chain project of new energy battery with Yuxi Municipal People’s Government of Yunnan Province, Yunnan Energy New Material Co.Ltd(002812) , Huayou holdings and Yunnan Yuntianhua Co.Ltd(600096) on February 16. The agreement stipulates that both parties shall establish two joint ventures in Yuxi City to engage in mineral resource development and mineral deep processing respectively. Among the two joint ventures, Yuxi Municipal government, Yunnan Energy New Material Co.Ltd(002812) , Eve Energy Co.Ltd(300014) , Zhejiang Huayou Cobalt Co.Ltd(603799) and Yunnan Yuntianhua Co.Ltd(600096) accounted for 23%, 22%, 20% and 17% respectively. The profits of the joint venture company shall be enjoyed by all parties in proportion to their paid in capital contributions. In addition, the agreement stipulates that Yunnan Energy New Material Co.Ltd(002812) , Eve Energy Co.Ltd(300014) , Zhejiang Huayou Cobalt Co.Ltd(603799) and Yunnan Yuntianhua Co.Ltd(600096) will respectively lead the investment and construction of battery supporting projects such as new energy battery, lithium battery isolation membrane, iron phosphate, lithium iron phosphate and copper foil projects in Yuxi City in the future. The first phase of the commitment investment is 18.05 billion yuan, which will be completed by the end of 2023; The committed investment of phase II is 33.65 billion yuan, which will be completed by the end of 2025. Yuxi is rich in lithium resources. The signing of the agreement will help the company give priority to lithium resources, strengthen the company’s supply chain security and reduce the impact of raw material price fluctuations. At the same time, the company will make use of the advantages of local industrial clusters to further expand the production capacity of power energy storage batteries and enhance the competitiveness of the company.
The company strengthened the layout of upstream raw materials: due to the continuous rise of upstream raw material prices and tight supply, the company has actively arranged the production capacity of key raw materials of batteries since 2021. In addition to this investment in Yuxi, Yunnan, the company has previously locked in some lithium resources in Qinghai Dachaidan Salt Lake and Tibet Jieze Chaka Salt Lake through equity participation and strategic cooperation, and plans to invest in the construction of cathode material production capacity in the local area. Among them, the phase I 10000 tons of lithium carbonate and lithium hydroxide production capacity in Qinghai is expected to be put into operation in the second half of this year. In addition, the company also actively cooperates with Yunnan Energy New Material Co.Ltd(002812) , Hunan Zhongke Electric Co.Ltd(300035) , Gem Co.Ltd(002340) and other companies to ensure the supply of diaphragm, negative electrode materials and nickel products.
Profit expectation: we expect the net profit of the company in 2021, 2022 and 2023 to be 2.85 billion yuan, 4.01 billion yuan and 5.63 billion yuan respectively, yoy to be + 72.4%, + 40.7% and + 40.5% respectively, and EPS to be 1.51 yuan, 2.12 yuan and 2.98 yuan. The current share price corresponds to 56 times, 40 times and 29 times P / E in 2021, 2022 and 2023 respectively. It is recommended to “buy”.
