Beiteri (835185)
Latest changes: stripping lithium iron phosphate business, consolidating the leading position of negative electrode materials + increasing the production capacity of high nickel ternary materials. Since the beginning of 2021, the company has carried out many foreign investment projects, including 50000 tons of high-end artificial graphite cathode material project, 120000 tons of negative electrode needle coke production line, 80000 tons of high-end artificial graphite cathode integrated production line, 50000 tons of high nickel ternary cathode material project of lithium battery and other expansion projects. In order to focus more on the core business of cathode materials, the company sold lithium iron phosphate related assets and businesses (“Tianjin nano”, “Jiangsu nano”) in mid-2021, with a total transaction price of 844431000 yuan. In addition, a total of 24.92 million stock options were granted in the second phase of the equity incentive plan in 2021, motivating 390 senior executives and core employees. The unlocking condition is that the net profit deducted from non parent company in 2021 will increase by 35% compared with that in 2020. On the whole, 2021 is a year of growth and momentum. The industry will expand silicon base + increase ternary production capacity, issue equity incentive plan, deeply bind core employees and lay the cornerstone of the company’s future development.
Negative electrode highlights: the shipment volume has ranked first in the world for many consecutive years. In the future, we will continue to develop artificial graphite and silicon-based negative electrode material technology. The company’s main products are natural graphite negative electrode materials, artificial graphite negative electrode materials and new silicon-based negative electrode materials. The company has a complete industrial chain of natural graphite negative electrode materials mined and finished products. Artificial graphite negative electrode materials and silicon-based negative electrode materials are the main development direction of the company in the future. Since 2013, the company’s shipments of negative electrode materials have ranked first in the world for eight consecutive years. At the same time, the shipments of silicon-based negative electrode materials will take the lead in China in 2020. In 2021h1, the company’s negative electrode materials achieved a revenue of 2.39 billion yuan, accounting for 56.88% of the total revenue and a gross profit margin of 36.7%. Based on quality, scale and customer structure, the negative electrode gross profit margin has been a leading industry company in recent years. In the first three quarters of 2021, the sales of negative electrode materials exceeded 100000 tons, of which the sales of artificial graphite negative electrode exceeded 60000 tons. According to DT new materials, the company’s market share of negative electrode materials in China reached 22% in 2020, ranking first in the industry. In addition, the company presided over the formulation of the national standard for silicon carbon anode and participated in the investment in the integrated production line of high-end artificial graphite anode. The company’s scale advantages, upstream and downstream industrial chain integration advantages, technical advantages and customer advantages will be further strengthened.
Positive aspect: high nickel ternary has performance advantages, which has been verified by ski, Panasonic and other international customers. The company’s cathode material product system consists of high nickel ternary cathode material and lithium iron phosphate cathode material. In recent years, the company has focused on the R & D and production of high nickel ternary cathode materials with the advantages of low cobalt, high energy density and high cost performance. From the perspective of R & D investment, the R & D cost of the company’s cathode materials has always been in the forefront of the industry, It reflects the company’s large investment in the research and development of cathode materials. In 2020 and 2021h1, cathode materials contributed revenue of 1.042 billion yuan and 1.587 billion yuan respectively, accounting for 23.4% and 37.7% of the total revenue. In 2021, the gross profit margin of H1 cathode material will increase to 17.16%. According to the data of China Commercial Industry Research Institute, it is estimated that the shipment of cathode materials in China will reach 580000 tons in 2021, and the market scale of cathode materials in China is expected to reach 87.7 billion yuan in 2021. The company’s high nickel cathode material production line has passed the audit and verification of ski, Panasonic and other international customers. In terms of delivery volume, high nickel ternary cathode has achieved a breakthrough for major customers at home and abroad. In addition, the company’s capacity under construction is 50000 tons. On the whole, high nickel ternary cathode is expected to have a positive impact on the company’s future operating results.
Investment suggestion: with lithium-ion battery cathode materials and cathode materials as its core products, beiteri is a prominent R & D and manufacturer of new energy materials in the global industry. In the past two years, beiteri has expanded the production capacity of artificial graphite negative electrode materials, and actively built new production lines of silicon-based negative electrode materials and high nickel ternary positive electrode materials, so as to make a forward-looking layout for the development trend of positive and negative materials in the industry in the future. We estimate that the company’s revenue from 2021 to 2023 will be 9.547 billion yuan, 15.817 billion yuan and 22.880 billion yuan respectively, with growth rates of 114.5%, 65.7% and 44.7% respectively; The net profit is RMB 1.372 billion, RMB 2.010 billion and RMB 2.846 billion respectively, and the corresponding PE is 52X, 36x and 25X respectively, giving a Buy-A investment rating.
Risk tip: management risk and accounts receivable risk caused by scale expansion
