\u3000\u30003 China Zhenhua (Group) Science & Technology Co.Ltd(000733) 00073)
Key elements of the report:
On March 10, the company released the performance express of 2021 and the announcement of main business data from January to February 2022. The company's high nickel cathode products have obvious competitive advantages. Driven by class C models, the cathode material business has a strong growth rate and achieved a significant increase in revenue.
Key investment points:
Sanyuan high nickel maintains high prosperity and full production capacity: in the middle of 2021, the production and sales of Shanxi Guoxin Energy Corporation Limited(600617) vehicles exceeded 3.5 million, and the sales of A00 and C models strengthened, driving the growth of shipments of lithium iron phosphate and high-end ternary batteries. As the leader of high nickel cathode, the company achieved a total revenue of 8.375 billion yuan in the whole year, with a year-on-year increase of 163.07%; The net profit attributable to the parent company was 18.391 billion yuan, a year-on-year increase of 1.091 billion yuan. In the middle of 2022, the production and sales volume of Shanxi Guoxin Energy Corporation Limited(600617) vehicles is expected to exceed 5.5 million, and the high nickel three yuan will maintain a high boom. From January to February, the company's production capacity will remain at full capacity, realizing a total revenue of 2.348 billion yuan, a year-on-year increase of 202.21%; The net profit attributable to the parent company was 230 million yuan, a year-on-year increase of 113.91%, and the performance exceeded expectations.
Continuous R & D iteration and multi-dimensional building of leading barriers: high nickel products are the only way to solve the endurance problem of electric vehicles. With high technical R & D barriers and long downstream verification cycle, the leading competitive advantage is more obvious. Ni88 nickel products have been developed and exported in large quantities overseas, and ni88 nickel products have been continuously developed and exported in large quantities. The company has strengthened strategic cooperation with high-end customers at home and abroad, including industry leaders such as SK, LG and Samsung. At present, the shipment volume of international customers accounts for nearly 70%. In addition, the company's ni95 new products have been verified by international customers and are about to enter the stage of mass production.
Accelerated capacity expansion and implementation of European base projects: the company has accelerated the medium and long-term capacity layout, completed the fund-raising plan of 4.645 billion yuan and invested in three projects, of which Changzhou phase II will build a ncm811 product production line with an annual output of 50000 tons; Haimen phase IV will build a production line of 3C digital cathode products with an annual output of 20000 tons. In addition, the company's European production base of 100000 tons of high nickel power cathode materials has signed an investment letter of intent in November 21, and the first phase of 50000 tons of high nickel production capacity is expected to be put into operation in 2024.
Profit forecast and investment suggestions: in view of the high prosperity of the high nickel ternary battery industry, the successive landing of the capacity under construction and the continuous R & D iteration of the company's products, the company is expected to achieve an operating revenue of RMB 8.375121.03/15.683 billion and a net profit attributable to the parent company of RMB 1.091/12.201649 billion in 21-23 years. Based on the company's leading position in high-end ternary materials, we maintain the overweight rating.
Risk factors: the price of upstream raw materials fluctuates, and the production progress of new production capacity is less than expected.
