\u3000\u3000 Sichuan Development Lomon Co.Ltd(002312) (002312)
Event: on the evening of February 21, the company issued the announcement on investing in the construction of Deyang Sichuan Development Lomon Co.Ltd(002312) lithium battery new energy material project. With Deyang Sichuan Development Lomon Co.Ltd(002312) new materials Co., Ltd., a wholly-owned subsidiary, as the main body, the company plans to invest 12 billion yuan in Sichuan Deyang ABA Ecological Economic Industrial Park to build a project with an annual output of 200000 tons of lithium iron phosphate, 200000 tons of iron phosphate and supporting products. The construction period of the project is from March 2022 to December 2026. The project will be implemented in two phases, of which phase I project is tentatively scheduled to be completed and put into operation in December 2024 and phase II project is tentatively scheduled to be completed and put into operation in December 2026.
Invest 12 billion yuan to increase the planning of new energy industry projects such as iron phosphate and lithium iron phosphate. The announcement of the relevant investment framework agreement was made in November 2021, and this announcement is aimed at the further implementation of the previous framework agreement and defines the investment amount of 12 billion yuan. Meanwhile, compared with the previous announcement, this announcement has adjusted the construction progress of relevant capacity projects, in which the completion time of phase I project is adjusted from October 2023 to December 2024, and the completion time of phase II project is adjusted from December 2024 to December 2026. In addition, the company has also announced the production line project with an annual output of 200000 tons of lithium iron phosphate, 200000 tons of iron phosphate and 300000 tons of sulfuric acid in Panzhihua vanadium titanium high Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) Development Zone, Sichuan Province, and the 100000 tons of iron phosphate project in Qianjiang City, Hubei Province. Superimposed on this announcement, the company’s overall iron phosphate production capacity is planned to reach 500000 tons, lithium iron phosphate production capacity is planned to reach 400000 tons, and the production capacity planning of phosphorus new energy materials ranks in the forefront of Chinese enterprises. As the leader of industrial grade monoammonium phosphate in China, the company has significant cost advantages and raw material supply advantages in the ammonium production route of iron phosphate, which is conducive to the company’s rapid entry into the field of iron phosphate / lithium iron phosphate new energy cathode materials.
It plans to acquire Tianrui mining and expand the upstream industrial chain of phosphorus chemical industry. The company announced the draft acquisition of Tianrui mining on January 14. The company plans to acquire 100% of the total equity of Tianrui mining held by Chuanfa mining and Sichuan salt industry by issuing shares, with a transaction consideration of about 956 million yuan. Tianrui mining currently owns the phosphate mining right of tongchanggeng (No. 8 ore block) of laoheba Phosphate Mine in Mabian, Sichuan Province. The approved phosphate production capacity is 2.5 million tons / year, and the registered phosphate production capacity is 2 million tons / year. After the acquisition of Tianrui mining, the company’s phosphate rock production capacity will rise from 1.15 million tons / year to 3.65 million tons / year. Under the background of rising phosphate rock prices, the company’s own phosphate rock production capacity will build a very obvious industrial synergy advantage.
Profit forecast, valuation and rating: the capacity project is expected to be implemented at the end of 2024, which will not affect the company’s performance from 2021 to 2023. Therefore, we will not consider the performance contribution of the project for the time being. We still maintain the company’s profit forecast from 2021 to 2023. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be RMB 1.062/822/925 billion respectively, maintaining the company’s “buy” rating.
Risk tips: project approval risk, product price fluctuation risk, downstream demand is less than expected, and the construction of raised investment projects is less than expected.
