\u3000\u3 China Vanke Co.Ltd(000002) 709 Guangzhou Tinci Materials Technology Co.Ltd(002709) )
The company released the annual report of 2021, and the profit increased significantly year-on-year; The electrolyte business of the company has achieved rapid growth, and the production capacity of lithium hexafluorophosphate, VC and other materials has gradually increased; Maintain the overweight rating.
Key points supporting rating
The company’s profit in 2021 increased significantly year-on-year, which was in line with expectations: the company released its annual report in 2021 and achieved an operating revenue of 11.091 billion yuan, a year-on-year increase of 169.26%; The profit was 2.208 billion yuan, a year-on-year increase of 314.42%; Deduct non-profit 2.169 billion yuan, a year-on-year increase of 310.55%. According to the calculation, the profit of 2021q4 was 655 million yuan, an increase of 441556% year-on-year and a decrease of 15.09% month on month; Deduct 659 million yuan of non-profit, with a year-on-year increase of 515084% and a month on month decrease of 11.51%. The company also announced that it plans to distribute a cash dividend of 5 yuan (including tax) for every 10 shares and increase 10 shares for every 10 shares to all shareholders with capital reserve. The company had previously predicted a profit of 2.1-2.3 billion yuan in 2021, and the annual report performance was in line with expectations.
Bright business data from January to February: the company previously released the business data from January to February 2022, with an operating revenue of about 3.3 billion yuan, a year-on-year increase of about 260%; The profit was about 860 million yuan, a year-on-year increase of about 470%.
The business volume of lithium-ion battery materials increased rapidly, and the iron phosphate business is expected to increase in volume: the company’s lithium-ion battery materials business achieved an operating revenue of 9.733 billion yuan in 2021, with a year-on-year increase of 265.92%, a gross profit margin of 36.03%, and a year-on-year increase of 8.42 percentage points. The company delivered a total of 97000 tons of electrolyte in the whole year, a year-on-year increase of 3.4%. It is estimated that the shipment volume of electrolyte will reach more than 300000 tons in 2022, and the self supply proportion of hexafluoride and other raw materials will gradually increase to more than 90%. The company’s iron phosphate business will gradually increase in volume, with a shipment of about 20000 tons in 2021 and is expected to reach 60 Faw Jiefang Group Co.Ltd(000800) 00 tons in 2022, which will contribute to the performance increment.
The operating cash flow was significantly improved: the company’s gross profit margin of sales in 2021 was 34.98%, an increase of 0.01 percentage points year-on-year, and the net profit margin of sales was 20.80%, an increase of 8.65 percentage points year-on-year. In addition, the net cash flow from the company’s operations in 2021 was 2.047 billion yuan, a year-on-year increase of 223.59%, of which the net cash flow in 2021q4 was 1.058 billion yuan, a year-on-year increase of 629.66% and a month on month increase of 291.85%.
Valuation
Under the current share capital, combined with the company’s 2021 annual report and industry changes, we adjusted the company’s predicted earnings per share from 2022 to 2024 to 5.25/6.39/7.31 yuan (the original predicted diluted earnings per share from 2022 to 2023 was 3.96/5.07 yuan), corresponding to a P / E ratio of 19.2/15.8/13.8 times; Maintain the overweight rating. Main risks of rating
Price competition exceeds expectations; The demand for new energy vehicles does not meet expectations; The release of new capacity is not as expected; New product development fails to meet expectations; The impact of covid-19 epidemic exceeded expectations.
