\u3000\u30 Beijing Jingyeda Technology Co.Ltd(003005) 68 Shenzhen Senior Technology Material Co.Ltd(300568) )
Event: on the evening of February 28, the company released its annual report for 2021. In 2021, the company achieved a revenue of 1.861 billion yuan, a year-on-year increase of + 92.48%; The net profit attributable to the parent company was 283 million yuan, a year-on-year increase of + 133.49%; The net profit attributable to the parent company after non deduction was 296 million yuan, a year-on-year increase of + 235.00%. Among them, 2021q4 company achieved an operating revenue of 546 million yuan, a year-on-year increase of + 53.47% and a month on month increase of + 12.86%; The net profit attributable to the parent company was 70.59 million yuan, a year-on-year increase of + 279.94% and a month on month decrease of – 29.91%.
Comments:
Diaphragm volume and price rose simultaneously, driving the company’s performance to increase greatly. In 2021, the company achieved a lithium diaphragm output of 1.215 billion square meters, a year-on-year increase of + 64.14%, and a lithium diaphragm sales volume of 1.22 billion square meters, a year-on-year increase of + 74.25%. In terms of diaphragm sales unit price, the average selling price of the company’s diaphragm products rose to 1.51 yuan / m2 in 2021, an increase of about 20.35% compared with the unit price in 2020. Meanwhile, in 2021, the average net profit of the company’s diaphragm increased to 0.23 yuan / m2, with a year-on-year increase of about 34.00%, corresponding to an increase of about 1.6pct in the average net profit margin of the diaphragm. Thanks to the comprehensive improvement of the capacity utilization rate of the “360 million square meter annual lithium ion battery wet diaphragm project” of Changzhou Xingyuan, a wholly-owned subsidiary, and the “super coating factory” project of Jiangsu Xingyuan, a wholly-owned subsidiary, the production and sales of lithium battery diaphragms of the company increased significantly during the reporting period. In terms of profitability, based on the strong demand of the downstream lithium battery industry and the highlighting of the company’s scale effect, the profitability of the company’s lithium battery diaphragm has also been gradually improved. In terms of R & D, the company’s R & D expenses in 2021 were 111 million yuan, an increase of 96.34% year-on-year, laying a solid foundation for the company’s subsequent development in the diaphragm industry. In addition, the 2021q4 company accrued about – 39.95 million yuan of gains and losses on the disposal of non current assets in a single quarter, resulting in a decline in the net profit attributable to the parent company in a single quarter of 2021q4. If the impact of the above non current assets disposal profit and loss is not taken into account, the net profit attributable to the parent company in the single quarter of 2021q4 can still show a month on month growth trend.
Simultaneously expand diaphragm production capacity outside China and bind downstream leaders to facilitate the release of production capacity. Based on the development opportunities of new energy vehicles in Europe, the company actively explores the European market. In 2021, the company invested 1.972 billion yuan in Sweden to build 700 million square meters of wet base film capacity and 420 million square meters of coating capacity in three phases. The first phase of the project is expected to be completed and put into operation in the first half of 2022, with an additional coating diaphragm capacity of 80 million square meters / year. In terms of China’s production capacity, the company plans to invest 7.5 billion yuan to build the “high-performance lithium-ion battery wet diaphragm and coated diaphragm (phase I and phase II) project” in Nantong, Jiangsu Province, which can produce 2 billion square meters of high-performance lithium-ion battery wet diaphragm and coated diaphragm annually. The Nantong base project is expected to be put into operation gradually in January 2023. At the same time, during the reporting period, the company also signed the supply guarantee agreement with South Korea lgenergysolution, LT (hereinafter referred to as “LG”), which agreed that the company would continue to supply LG with wet coated lithium-ion battery diaphragm materials in the next 4.5 years, with a total amount of about 4.311 billion yuan, providing greater certainty for the gradual release of the company’s future production capacity.
Introduce a restricted stock incentive plan to enhance the cohesion of core members. On January 27, 2021, the company issued the 2022 restricted stock incentive plan (Draft), which plans to issue an additional 3.26 million shares to 299 core management, technical and sales personnel at the price of 18.25 yuan / share, of which 2.6382 million shares will be granted in the first batch. At the company level, the restricted shares granted for the first time in this incentive plan take the net profit from 2022 to 2024 as the evaluation index, and the performance evaluation target is that the growth rate of net profit attributable to parent company in 20222024 is not less than 105% / 175% / 340% respectively compared with that in 2021, corresponding to the target of net profit attributable to parent company in 20222024 is 580 / 778 / 1245 million yuan respectively, The proportion corresponding to the lifting of sales restrictions from 2022 to 2024 is 40% / 40% / 20% respectively. If the reserved restricted shares are granted in 2023, the corresponding assessment year is 20232024, and the proportion of lifting the restriction in each year is 50% respectively. The restricted stock incentive plan establishes and improves the company’s long-term incentive mechanism, effectively binds the personal interests of the company’s core management, technology and sales personnel, enhances the cohesion of the company’s core members, and demonstrates the company’s sufficient confidence in the future long-term development.
Profit forecast, valuation and rating: as 2021q4 company has accrued a higher amount of asset disposal profit and loss, the annual net profit attributable to the parent company is slightly lower than previously expected. However, short-term non recurring gains and losses do not affect the company’s long-term development plan. We still maintain the company’s profit forecast from 2022 to 2023 and add the company’s profit forecast for 2024. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 692 million, RMB 1085 million and RMB 1396 million respectively, and the rating of “overweight” of the company will still be maintained.
Risk tips: downstream demand fluctuation risk, capacity construction risk, diaphragm process iteration, exchange rate risk.
