\u3000\u3 China Vanke Co.Ltd(000002) 240 Chengxin Lithium Group Co.Ltd(002240) )
Events
On the evening of March 22, the company released the plan for non-public offering of A-Shares in 2022. The object of issue is Byd Company Limited(002594) , the issue price is 42.99 yuan / share, the number of shares issued is not less than 465224 million shares (including this number) and not more than 697837 million shares (including this number), not more than 30% of the total share capital of the company before the issue and not less than 5% of the total share capital of the company after the issue, The total amount of funds to be raised by non-public offering (including issuance expenses) shall not exceed 3 billion yuan (including this amount).
Commentary
The fixed increase in fund-raising shall not exceed 3 billion yuan, and the introduction of strategic investors Byd Company Limited(002594) . The total amount of funds to be raised by the company this time will not exceed 3 billion yuan. After deducting the issuance expenses, the net amount will be used to supplement working capital and repay debts. The specific object Byd Company Limited(002594) subscribes the issued shares in full in cash and will not transfer them within 36 months from the date of listing. After the issuance, it is estimated that Byd Company Limited(002594) holds more than 5% of the company’s shares. The company is the upstream raw material supplier of Byd Company Limited(002594) . In the future, with the vigorous development of new energy vehicle industry and energy storage industry and the continuous implementation of Byd Company Limited(002594) capacity investment plan, Byd Company Limited(002594) the demand for lithium products will continue to release, laying a solid foundation for business cooperation between the two sides and helping the company to increase its performance.
Global distribution of resources and gradual release of lithium salt production capacity. The company’s current lithium resource layout: Sichuan yelonggou lithium mine (holding 75%), taiyanghekou lithium Polymetallic Mine (holding 75%), Sichuan Murong lithium mine (holding 25.19%), Zimbabwe sabixing Lithium Tantalum mine (holding 51%), Argentina sdla Salt Lake (management right), mtcatlin and Manono underwriting. With the production of the mine, the self-sufficiency rate of resources of the company is expected to be 20% in 22 years and more than 70% in 25 years. At present, the company has a capacity of 28000 T / a of lithium carbonate and 15000 T / a of lithium hydroxide. It plans to have a capacity of 30000 T / a of lithium hydroxide in Sichuan and is expected to be put into operation in 22 years. It plans to have a capacity of 50000 T / A of lithium hydroxide and 10000 t / a of lithium carbonate in Indonesia, and is expected to be put into operation in 23 years. It is estimated that the lithium salt production capacity of the company will be 73000 T / A and 133000 T / a respectively in 22-23 years, and the lithium salt equity production capacity will be 63400 T / A and 102400 T / a respectively.
Profit forecast & investment suggestions
With the production of Zimbabwe and Murong lithium mines in the next two years, and the high price of lithium salt will be maintained, the company’s performance will increase with high certainty and great performance flexibility. The net profit attributable to the parent company for 22-23 years will be increased by 60%, 25% to 4.065 billion yuan and 5.042 billion yuan respectively, with corresponding EPS of 4.7 yuan and 5.8 yuan respectively, and corresponding PE of 12 times and 9 times respectively, maintaining the “buy” rating.
Risk tips
The uncertainty of lithium salt price trend in the later stage increases; The growth rate of lithium salt demand was lower than expected.
