Guangzhou Tinci Materials Technology Co.Ltd(002709) (002709)
Event: on December 28, the company issued the announcement on the proposed establishment of a wholly-owned subsidiary to invest in the construction of 200000 tons of lithium battery electrolyte project. The company plans to invest in the construction of “200000 tons of lithium battery electrolyte project” in Sihui Fine Chemical Industrial Park, Zhaoqing, Guangdong Province through the establishment of a wholly-owned subsidiary Zhaoqing Tianci high tech materials Co., Ltd., with a construction period of 12 months, The total investment of the project is RMB 819.899 million, including construction investment of RMB 395.575 million and initial working capital of RMB 424.324 million.
comment:
Increase the electrolyte capacity to promote the long-term development of the company. Benefiting from the high prosperity of downstream new energy vehicles, China Shipbuilding Industry Group Power Co.Ltd(600482) battery industry chain is still in a tight supply and demand situation in the short term. In 2021, Q3 electrolyte shipments and prices continue to rise. In the medium and short term, electrolyte prices are still expected to remain high. Since 2021, the company has planned an electrolyte production capacity of 500000 tons / year. This time, the company further plans a lithium battery electrolyte project with an annual output of 200000 tons. It is expected that the project can achieve an average annual operating revenue of 5469.41 million yuan and an average annual net profit of 297.79 million yuan.
Improve and optimize the industrial regional layout to realize the “nearby supply” to key customers in South China. The company has always been close to the terminal market, committed to providing customers with better services, continuously strengthening the company’s advantages in raw material transportation cost, supply cycle and quality assurance, so as to improve market competitiveness. The company aims at the development trend of capacity planning and layout of key customers in South China, which will fully improve the response speed to key customers in South China and reduce transportation costs. The project can meet the needs of the company’s business development and market expansion in South China, effectively solve the problem of insufficient regional capacity supply in the future, and is conducive to long-term and stable development.
Continue to deepen the integration of cost and value chain integration advantages, and the leading position is stable. The company’s core raw material capacity of liquid lithium hexafluorophosphate, lifsi and other electrolytes is complete, and the integrated cost advantage is significant. The company has a solid hexafluoride production capacity of 2000 tons / year and a liquid hexafluoride production capacity of 90000 tons / year. The planned and under construction liquid hexafluoride production capacity of 410000 tons / year is expected to be gradually put into operation in the next five years. At the same time, the company has an existing lifsi capacity of 2300 T / A and a planned and under construction lifsi capacity of 57700 T / A. In terms of value chain integration, on the one hand, the company has strengthened the layout of overseas factories, and the overseas subsidiaries such as Germany and South Korea have a good development momentum. On the other hand, the company has built the downstream material recycling industry through active M & A, opened up the layout of the whole industrial chain, and continued to consolidate the position of the industry.
Profit forecast, valuation and rating: due to certain uncertainties in the approval and production of planned capacity, 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 2.397/4.32/5.310 billion respectively, and the converted EPS will be RMB 2.50/4.20/5.53/share respectively. As a leading enterprise in the electrolyte industry, the company has significant advantages in capacity planning and industrial chain layout, maintaining the company’s “buy” rating.
Risk tips: production capacity construction risk, product price decline risk, downstream demand less than expected risk.
