\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 19 Cngr Advanced Material Co.Ltd(300919) )
Event:
Cngr Advanced Material Co.Ltd(300919) issued the equity incentive plan for 2022: 1113 senior executives and core technicians of the company were granted a total of 6.05 million restricted shares, the source of which was A-share common stock of the company, accounting for 1% of the total share capital of the company, of which 4.84 million shares were granted for the first time, accounting for 80% and the grant price was 63.97 yuan / share; 1.21 million shares are reserved. The conditions for selling off are to realize a revenue of 26 billion yuan or a net profit of 1.8 billion yuan in 2022, a cumulative revenue of 62.6 billion yuan or a net profit of 4.8 billion yuan in 20222023, and a cumulative revenue of 113.9 billion yuan or a net profit of 9.8 billion yuan in 20222024. It will be sold in three phases, 30% / 30% / 40% from 2022 to 2024.
Key investment points:
A wide range of incentives, high performance goals, highlighting the company’s confidence. The incentive objects are 1113 senior executives and core technicians of the company, including foreign employees, who are mainly encouraged to contribute to the company’s technology research and development, product innovation and business expansion outside China. The proportion of awards granted to a single incentive object this time does not exceed 1% of the total awards, and the incentive range is wide. The selling conditions highlight the company’s confidence in its own performance and require that the revenue from 2022 to 2024 increase by 30% / 82% / 156% respectively compared with 2021. The company granted 4.84 million restricted shares to the incentive object for the first time, and the total amortization expense of restricted shares was 320 million yuan, which was amortized by 140 / 1.1/0.5/0.1 million yuan in 2022 / 2023 / 2024 / 2025 respectively.
Technological advantages bind high-quality customers, share high growth, and deepen the integrated layout to enhance the core competitiveness. Relying on technical advantages, bind high-quality customers and achieve high-speed growth. The preparation process of precursor is complex, which has high requirements for experience accumulation and technology research and development. Relying on technical requirements, the company has bound LG Chemical, one of the leading global power battery manufacturers, to achieve rapid growth in the past few years; At the same time, as an independent precursor leader, customers extend to Contemporary Amperex Technology Co.Limited(300750) , Tesla. Cooperate with the leader of nickel resources, double wheel drive of new energy material recycling, and integrated layout to ensure the supply of raw materials and stabilize the cost. As a processing link, the precursor has a high proportion of raw materials in the cost, and the fluctuation of upstream raw materials has a great impact on the company’s profits. The company’s extension to the upstream industrial chain can effectively reduce production costs while improving the stability of raw material supply. In terms of the layout of upstream nickel resources, the company has reached strategic cooperation with the subsidiary of nickel leader Qingshan holdings; Cooperation agreement with rigoueza on smelting laterite nickel ore with an annual output of 30000 tons of high nickel matte. In terms of recycling of new energy materials, with the gradual production of 70000 ton metal nickel cobalt project in the southern base of Guangxi, the self supply rate of raw materials is expected to be further improved. With the improvement of integrated layout and the strengthening of cost barriers, the company will enhance its core competitiveness and improve its profitability.
Profit forecast: the company benefits from the increased penetration of new energy vehicles, driving the rapid growth of power battery demand and strong downstream demand; And capacity expansion. It is estimated that the operating revenue of the company from 2022 to 2024 will be 44.828 billion yuan, 53.781 billion yuan and 65.062 billion yuan, and the net profit attributable to the parent company will be 1.823 billion yuan, 3.082 billion yuan and 4.409 billion yuan. The current stock price corresponds to PE of 43.13, 25.43 and 17.76, which is rated as “buy”.
Risk tips: the sales volume of electric vehicles is lower than expected, the price of raw materials continues to rise, the capacity expansion is lower than expected, the relevant cooperation is lower than expected, and the price competition in the industry is intensified.
