\u3000\u3 China Vanke Co.Ltd(000002) 182 Nanjing Yunhai Special Metals Co.Ltd(002182) )
In the past 21 years, the net profit attributable to the parent company increased significantly year-on-year. On March 15, the company disclosed its annual report. In the past 21 years, the company achieved an operating revenue of 8.117 billion yuan, a year-on-year increase of 36.52%; The net profit attributable to the parent company was 493 million yuan, a year-on-year increase of 102.21%; The net profit deducted from non parent company was 420 million yuan, with a year-on-year increase of 83.81%; The profit distribution plan is to distribute a cash dividend of 1 yuan for every 10 shares.
Production and sales rose simultaneously, and high magnesium prices improved the profitability of magnesium products. In the past 21 years, the production and sales volume of the company were basically the same, with an output of 533000 tons and a sales volume of 533100 tons, with a year-on-year increase of 19.50% and 19.63% respectively. In the 21st year, the price of magnesium entered the rising channel. According to the statistics of industry associations, the original annual average price of magnesium was 25244 yuan / ton, up 65.8% year-on-year. High magnesium prices significantly increased the gross profit margin of the company’s magnesium products. In 21 years, the magnesium alloy business achieved a revenue of 2.356 billion yuan, a year-on-year increase of 35.37%; The gross profit margin is 22.74%, only 10.30% in 20 years.
The leading position of magnesium industry is stable, and the new production capacity is about to break out. At present, the company has realized the layout of the whole industrial chain of the magnesium industry, with a magnesium alloy production capacity of 200000 tons, accounting for about 35% of the market; The original magnesium production capacity is 100000 tons, accounting for about 10% of the market. The company continued to improve its industrial layout. In September of 21, the company invested and built a 100000 ton magnesium based light alloy and deep processing project in Wutai County; In December 21, Chaohu precision invested in the project of building formwork with an annual output of 2 million pieces of magnesium; 22 years in March, with Nanjing pilot new magnesium aluminum building formwork project. Meanwhile, in 2022, Boao phase II and Chaohu precision magnesium alloy building formwork projects will be put into operation; In 2023, Chaohu Yunhai expansion project will reach production capacity; The Qingyang project in cooperation with Baosteel metal is expected to be put into operation in 2023 and reach production in 2024; In the future, the company’s magnesium alloy and deep processing capacity will accelerate the expansion.
Downstream applications continue to extend, and the demand for magnesium in 22 years may usher in an explosion. In 2022, we believe that lightweight materials such as magnesium alloy battery structure, magnesium automobile wheel hub and instrument panel back sector are expected to be in large quantities; At the same time, the green building material magnesium building formwork may achieve a breakthrough in penetration. With the continuous improvement of the layout around lightweight materials and magnesium building formwork and the deepening cooperation with Baosteel metal, a strategic shareholder, the company is expected to enjoy the industry growth dividend and considerable performance growth space.
Investment suggestion: as a leading enterprise in the magnesium industry, with the expansion of its own production capacity and the growth of downstream demand, Nanjing Yunhai Special Metals Co.Ltd(002182) performance release period is approaching. The operating revenue of the company is expected to reach RMB 14.635 billion, RMB 16.538 billion and RMB 22.032 billion from 2022 to 2024, and the net profit attributable to the parent company is RMB 916 million, RMB 931 million and RMB 2.036 billion respectively, and the EPS is RMB 142 million, RMB 144 million and RMB 3.15 million respectively. Maintain the “buy” rating.
Risk tip: the price of raw materials rises, the price of magnesium fluctuates sharply, the production capacity is put in less than expected, and the downstream demand growth is less than expected
