\u3000\u3000 Guizhou Zhenhua E-Chem Inc(688707) (688707)
Events
The company released the performance express for 2021: in 2021, the company achieved a revenue of 5.5 billion yuan, a year-on-year increase of 432%, realized a return to parent net profit and deduction of non return to parent net profit of 410 million yuan and 400 million yuan, turned losses into profits, and Q4 return to parent net profit and deduction of non return to parent net profit were 150 million yuan, an increase of 39% and 40% month on month.
Brief comment
Turn losses into profits, significantly improve capacity utilization and output, drive performance to turn losses into profits, and profitability is expected to benefit from the improvement of raw material procurement layout and the proportion of high nickel
In 2021, the company actively built and put in production capacity, and the release of new production capacity in Yilong phase II in the second half of the year led to the annual shipment of ternary cathode, which is expected to be close to 35000 tons; The significant improvement of capacity utilization and output, and the cost reduction and efficiency increase brought by the release of scale effect are important reasons for turning losses.
In terms of profitability, the company strengthened the procurement layout of some raw materials, effectively controlled the cost of raw materials and improved its profitability; In addition, the company's high nickel products are gradually in large quantities, driving the optimization of product structure and enabling profitability. In the long run, the manufacturing end company will lay out Yilong Industrial Zone, and Yilong's low manufacturing cost will create space for the decline of the company's manufacturing expenses. The raw material end company will lay out Hongxing electronics, and the raw materials will be supplied by itself or further enhance the company's single ton profit center.
Highlight the difference of production capacity and actively launch products
The company's products are differentiated. The accumulation of the company's precursor large single crystal technology system and the mature three-time sintering process around large single crystal products help to increase the structural stability of medium and high nickel and high nickel products, improve the safety, cycle times and other properties, and meet the technical and process requirements of the industry's development for cathode material products in the future; The company has actively invested in production capacity, with shawen phase I technical transformation + shawen phase II and production expansion + Yilong phase II climbing to promote the company's shipment and support the high growth of the company's performance.
Investment advice
It is estimated that from 2022 to 2023, the company will realize a net profit attributable to the parent of 720 million yuan and 960 million yuan, corresponding to 33 and 25 times the current share price.
Risk tips
The sales volume of new energy vehicles did not meet expectations, the price of raw materials continued to rise, and the global epidemic intensified.
