\u3000\u3000 Hunan Zhongke Electric Co.Ltd(300035) (300035)
The company announced that it would jointly increase the capital of zhongkexing city in Gui’an new area with Contemporary Amperex Technology Co.Limited(300750) , and the capacity expansion plus the introduction of power battery leaders will further open up the profit space of the company; Maintain buy rating.
Key points supporting rating
In depth cooperation Contemporary Amperex Technology Co.Limited(300750) to jointly build a production capacity of 100000 tons of negative electrode materials: Recently, the company announced that its holding subsidiary Zhongke Xingcheng holdings plans to increase the capital of Zhongke Xingcheng graphite Co., Ltd. in Gui’an new area with Contemporary Amperex Technology Co.Limited(300750) to jointly build an integrated project with an annual output of 100000 tons of lithium battery negative electrode materials. Among them, Zhongke Xingcheng holdings increased its capital by 420 million yuan and held 65% equity after the capital increase; Contemporary Amperex Technology Co.Limited(300750) increased the capital by 280 million yuan, held 35% equity after the capital increase, and enjoyed the priority of purchasing the project capacity.
The expansion of head customers has been further improved and the certainty of capacity consumption has been improved: the company has maintained long-term good cooperative relations with well-known enterprises in the industry such as Byd Company Limited(002594) , Contemporary Amperex Technology Co.Limited(300750) , AVIC lithium battery, Eve Energy Co.Ltd(300014) and has a high-quality customer structure. This time, we cooperated with Contemporary Amperex Technology Co.Limited(300750) in depth to jointly increase the negative electrode capacity. We believe that the company’s high-quality capacity has been recognized by the leading battery enterprises, which is expected to further improve the certainty of the company’s new capacity consumption.
Capacity expansion accelerated, and the proportion of graphitization self supply further increased: the company has announced a capacity planning of 342000 tons. The negative electrode material project with an annual output of 30000 tons, the negative electrode material project with an annual output of 50000 tons in Hunan Zhongke Xingcheng, the integrated production capacity of 100000 tons in Guizhou Gui’an new area, and the integrated production capacity of 100000 tons in Qujing, Yunnan have been arranged successively. By the end of 2022, the negative electrode material production capacity of the company is expected to reach 250000 tons, the graphitization production capacity is expected to reach 210000 tons, and the self supply proportion is increased to 84%, which is conducive to further reducing the material cost of the company, Maintain high performance growth.
Actively distribute upstream raw materials and continuously strengthen the cost advantage: the company recently issued an announcement to invest in Haida new materials to ensure the supply of lithium battery cathode raw materials such as high-quality petroleum coke, which will help to further ensure the supply of upstream raw materials and strengthen the cost advantage of raw materials.
Valuation
Under the current share capital, combined with the company’s announcement and the current situation of the industry, we adjusted the company’s predicted earnings per share from 2021 to 2023 to 0.55/1.17/1.68 yuan (the original predicted earnings per share was 0.55/1.05/1.51 yuan), corresponding to a price earnings ratio of 55.7/26.4/18.3 times; Maintain buy rating.
Main risks of rating
The new energy vehicle industry policy did not meet expectations; The product strength of new energy vehicles does not meet expectations; The demand of the industrial chain does not meet the expectation; The price competition in the industrial chain exceeded expectations; The impact of the epidemic exceeded expectations.
