Guangzhou Tinci Materials Technology Co.Ltd(002709) (002709)
Conclusions and recommendations:
On December 29, the company announced that it planned to establish a wholly-owned subsidiary Zhaoqing Tianci high tech materials Co., Ltd. to invest in the “200000 ton lithium battery electrolyte project” in Sihui Fine Chemical Industrial Park, Zhaoqing, Guangdong Province. The total investment of the project is RMB 820 million, including the construction investment of RMB 395 million, the initial working capital of RMB 424 million, and the construction period of the project is 12 months.
The company’s main business is divided into lithium battery materials and daily chemical and special chemical materials. The company is a leading electrolyte enterprise in China. In the early stage, it arranged the integrated industrial chain of “sulfuric acid hydrofluoric acid lithium fluoride / phosphorus pentafluoride lithium hexafluorophosphate electrolyte” through chain expansion and production expansion. In the follow-up, several projects released new production capacity. It is expected that the company’s profit will further increase and be rated as “buy”.
The market share of the company’s main business is increased, and the expansion of production ensures the company’s growth: the market share of the company’s electrolyte business is gradually increased, from 22.3% in 2018 to 29.3% in 2020. By the end of 20 years, the company’s electrolyte production capacity was 106000 tons. In November this year, Jiujiang Tianci 150000 tons electrolyte project was put into trial production, and the subsequent production capacity will be gradually released. The company will continue to enjoy the profits brought by the high prosperity of the industry; In 22 years, the company expects that 100000 tons of electrolyte will be put into operation in Fuding and Liyang respectively; In addition, the company also plans to have a production capacity of 200000 tons of electrolyte in Nantong, 100000 tons in Liyang phase II and 200000 tons in Zhaoqing announced this time. It will continue to consolidate the leading position of the company and ensure the long-term growth of the company.
Obvious integration advantages and stable leading position: the company is a leading electrolyte enterprise in China. It not only has the largest electrolyte production capacity in China, but also has the core raw material production capacity of electrolyte such as lithium hexafluorophosphate and lithium difluorosulfimide. The industrial chain is complete and the integration cost advantage is significant. The company has 2000 tons of solid lithium hexafluorophosphate and 90000 tons / year of liquid lithium hexafluorophosphate. The planned and under construction liquid hexafluorophosphate production capacity is 410000 tons / year, which is expected to be gradually put into operation in the next five years. Meanwhile, in terms of new lithium salts, the company arranged bifluorosulfimide lithium in advance. The existing capacity of bifluorosulfimide lithium is 2300 tons / year, followed by 20000 tons of new capacity in Nantong and 30000 tons in Jiujiang. It is expected to be put into operation gradually in 2024. The new lithium salt is better than lithium hexafluorophosphate in battery performance, which is a new direction of lithium salt in the future. The company has leading advantages in technology and production capacity. At the same time, the company has also arranged a variety of electrolyte additives to realize the integrated layout of the whole industrial chain. At the same time, the company also carries out overseas layout and sets up subsidiaries in Germany, South Korea and other places to March globally.
Profit forecast: in 21 years, 1-3q company will realize a revenue of 6.62 billion yuan, yoy + 145.7%; The net profit attributable to the parent company was 1.55 billion yuan, yoy + 199.7%. This year, benefiting from the substantial growth in the demand for new energy, the company’s main products electrolyte and battery cathode materials are in short supply, and the price has increased significantly. The company enjoys the dividend of double increase in volume and price. Considering that the new energy industry has a strong degree of prosperity and accuracy, the company has a wealth of projects under construction and strong growth. It is expected that the company will achieve a net profit of RMB 2.419/4.031/5.358 billion, yoy + 354% / + 67% / + 33%, equivalent to EPS of RMB 2.53/4.22/5.61. At present, the PE corresponding to the A-share price is 47 / 28 / 21 times, giving a “buy” rating.
Risk tips: 1. The company’s product price is lower than expected; 2. The progress of the project under construction is less than expected.
