Zhejiang Huayou Cobalt Co.Ltd(603799) (603799)
Investment summary:
The Huayue wet process project achieved milestone progress. Recently, The highly concerned Huayue wet process project has been put into trial production (Huayou's equity accounts for 57%, with an annual output of 60000 tons of nickel and 7800 tons of cobalt). After testing, the main performance indicators of the first batch of products are qualified. The successful trial production of the project is a milestone in the development process of Huayou's nickel and cobalt resources in Indonesia, which provides resource guarantee for the expansion of precursor projects, and also provides resources for Huafei project (Huayou's equity accounts for 20%, with an annual output of 120000 tons of nickel and 15000 tons of cobalt) has accumulated project experience, and the project is expected to be completed and put into operation in the middle of 2023. With the addition of the Huake project expected to be completed and put into operation in the middle of 2022 (Huayou's equity accounts for 70%, with an annual output of 45000 tons of nickel), the company's resource allocation is more and more complete. With the improvement of resource self-sufficiency rate, the cost advantage of ternary precursor is obvious.
Lock in long orders, and the market share of precursors is expected to increase. Recently, the company has reached cooperation agreements with Ningbo Ronbay New Energy Technology Co.Ltd(688005) , Beijing Easpring Material Technology Co.Ltd(300073) and Farasis Energy (Gan Zhou) Co.Ltd(688567) respectively. Agreement:
Huayou provides competitive pricing methods for metal raw materials and precursor processing fees to dangshenghe Ningbo Ronbay New Energy Technology Co.Ltd(688005) ;
During the agreement period, the company will provide Ningbo Ronbay New Energy Technology Co.Ltd(688005) with precursors of no less than 180000 tons. Under the condition that the company provides the original pricing method of metal with competitive advantages and precursor processing fees, the procurement volume is expected to reach 415000 tons, and the cooperation period is 2022-2025;
The company and Beijing Easpring Material Technology Co.Ltd(300073) carry out in-depth cooperation in upstream mineral resources, jointly carry out the comprehensive development and utilization of high-quality mineral resources such as nickel, cobalt, manganese and lithium, and jointly obtain resource competitive advantages. During the agreement period, the company will provide Beijing Easpring Material Technology Co.Ltd(300073) with 300000-350000 tons of precursors, with a cooperation period from 2022 to 2025;
The company and Farasis Energy (Gan Zhou) Co.Ltd(688567) have agreed on the procurement and cooperation of ternary precursors, the recycling of waste and waste batteries, and the development, application and exchange of ternary positive electrodes and ternary precursors. During the agreement period, the company will provide 161500 tons of precursors to Farasis Energy (Gan Zhou) Co.Ltd(688567) for the cooperation period from December 2021 to 2025.
As of 2021q3, the company's precursor sales volume is about 46000 tons. According to the agreement, the company will supply at least 160000 tons of precursors to partners every year from 2022. The precursor sales volume will increase significantly and the market share is expected to increase.
The ternary iron lithium exerts force at the same time, and the positive electrode system is further improved.
Tianjin BAMO technology, the holding subsidiary of the company, has signed the letter of intent for equity acquisition and plans to purchase 100% equity of Inner Mongolia shengvanadium technology new energy Co., Ltd. held by Huayou holdings by paying cash or issuing additional shares to expand the lithium iron phosphate business. Shengvanadium technology has an annual output of 75000 tons of lithium iron phosphate cathode material, which is constructed in three phases. The annual production capacity of 15000 tons in phase I is officially put into operation on May 1, 2019, 25000 tons in phase II is planned to be put into operation at the end of 2021, and 35000 tons in phase III has been started and is expected to be put into operation in mid-2022;
Signed a cooperation framework agreement with Hubei Xingfa Chemicals Group Co.Ltd(600141) . The two sides cooperated around the whole industrial chain of new energy lithium battery materials, invested in the integrated industry of phosphate rock mining and beneficiation, phosphorus chemical industry, wet process phosphoric acid, iron phosphate and lithium iron phosphate materials in Yichang, Hubei Province, and built 500000 t / a iron phosphate, 500000 T / a lithium iron phosphate and related supporting projects. Hubei Xingfa Chemicals Group Co.Ltd(600141) the reserves of phosphate rock resources with mining rights are about 429 million tons, with a phosphate rock production capacity of 4.15 million tons / year. The Houping phosphate rock 2 million tons / year mining project under construction is planned to be completed and put into operation in the second half of 2022. After being put into operation, the phosphate rock production capacity will increase to 6.15 million tons / year.
Lithium iron phosphate will form another pole of the company's cathode material competitiveness, complement with ternary materials, and further improve the layout of cathode materials.
Investment suggestion: since the company is about to open up integrated production, the company's advantages in the field of cathode materials can be consolidated. We expect the net profit attributable to the parent company from 2021 to 2023 to be 3.185 billion, 4.239 billion and 5.648 billion respectively, corresponding to EPS of 2.63/3.50/4.66 yuan, and the current share price (December 2) corresponding to PE of 50 / 28 / 27 times respectively, maintaining the "buy" rating of the company.
Risk tip: resource prices decline; The construction progress of key projects is less than expected;
