Beijing Easpring Material Technology Co.Ltd(300073) (300073)
event
Beijing Easpring Material Technology Co.Ltd(300073) recently announced: sign a strategic cooperation agreement with blue new energy to supply no less than 25000 tons of solid lithium battery materials to blue from 2022 to 2025.
Key investment points
Supply solid lithium battery materials to Wei Lan, highlighting its leading position
The company is a leading supplier of cathode materials, mainly engaged in ternary cathode, lithium cobaltate and precursor materials. According to Xinlu lithium battery, the market share of the company was 9% in 2020 and increased to 10% from January to September 2021, ranking the top three in China. The company’s technical strength is at the leading level in the industry and has always attached importance to R & D. from January to September 2021, the R & D expenditure is 225 million yuan, and the R & D intensity is 4.4%. Thanks to the company’s excellent product performance, customer development has achieved remarkable results. Ski is deeply bound by means of joint venture factory construction and shareholding to supply heavy customers such as LGC, Yiwei, bick, Byd Company Limited(002594) . This strategic cooperation with Weilan new energy to reach production capacity further highlights the company’s strong technical strength and significant leading position.
We believe that the company’s R & D strength and technical reserve are leading in the industry, actively promote the technical routes such as ultra-high nickel, solid lithium battery materials and lithium ferromanganese, make a comprehensive layout, plan ahead, and constantly promote product renewal and iteration. The company is expected to deeply bind global high-quality customers with high-quality products and technical strength, so as to promote the continuous improvement of the company’s performance.
Accelerate global expansion and increase the layout of industrial chain
The company deeply binds ski and establishes production bases all over the world. The company has established 100000 tons of cathode materials in Europe with ski and Finnish mining. In addition, it plans to establish joint ventures with ski in South Korea to supply overseas markets such as the United States and South Korea. More than Sanyuan, the company gathers excellent partners in the global industrial chain and plans to invest with Zhongwei to build a production capacity of no less than 300000 tons of lithium iron phosphate in Guizhou. In view of the company’s strong customer demand, the company actively expands its production, including Beijing Yanjiao base, Jiangsu Haimen, Jiangsu Changzhou and European base. At present, the planned production capacity exceeds 220000 tons (excluding iron and lithium).
The industrial chain layout is improving day by day. In terms of nickel, cobalt and other resources, the company plans to take shares in Zhongwei 60000 ton nickel project and sign a strategic procurement agreement with Liqin; In terms of precursor procurement, the company signed a strategic cooperation agreement of 300000-350000 tons from 2022 to 2025 with Huayou and a strategic cooperation agreement of 200000-300000 tons from 2022 to 2024 with Zhongwei, with a total annual procurement volume of 142000-188000 tons. On the one hand, the company’s layout on the resource side and precursors actively ensures the availability of raw materials and cost competitiveness; On the other hand, it highlights that the company has abundant orders, strong product competitiveness and strong demand.
Overall, the company’s production capacity layout has been accelerated, the pace of global expansion has been accelerated, the industrial chain has been improved day by day, and the company’s cost competitiveness has been further strengthened.
Deep cultivation of the positive pole golden track, with excellent growth
The company takes technology as the core, deeply cultivates the cathode field, covers a wide range of technical paths, and prospectively arranges technical routes such as lithium ferromanganese, solid materials and ultra-high nickel. According to xinlune lithium, from January to November 2021, the output of 20 ternary material enterprises in China was 343000 tons, a year-on-year increase of 84.4%. Thanks to the company’s excellent products, the company’s production capacity is in short supply and its performance is eye-catching. From January to September 2021, the company achieved a revenue of 5.2 billion yuan, yoy + 155%, and a net profit of 514 million yuan, yoy + 127%, corresponding to a profit of about 15000 yuan / ton of cathode per ton, which is at the leading level in the industry.
We believe that the company will take root in the field of cathode materials, cover two golden tracks of electric vehicles and energy storage in the future, improve the layout of the industrial chain and strengthen cost competitiveness. The company attaches importance to R & D, driven by technology, and has excellent product performance. On the whole, the track where the company is located has good growth attributes, the company’s business layout is clear, and the cost and performance are expected to continue to dominate the industry, seize the market share, and continue to grow at a high speed.
Profit forecast
It is estimated that the net profit attributable to the parent company in 2021, 2022 and 2023 will be RMB 987 million, RMB 1326 million and RMB 1886 million respectively, EPS will be RMB 195 / 2.62/3.72, and the corresponding PE will be 44 / 33 / 23 times respectively. Based on the company’s high-quality track, excellent customers, global capacity expansion and industrial layout in line with the future development trend, we are optimistic about the company’s medium and long-term upward development opportunities and give a “recommended” rating.
Risk statement
Policy fluctuation risk; Downstream demand is lower than expected; The product price is lower than expected; Risk of deterioration of competition pattern; Capacity expansion and digestion were less than expected.
