\u3000\u3 Guocheng Mining Co.Ltd(000688) 388 Guangdong Jiayuan Technology Co.Ltd(688388) )
Event: the company released the 21st Annual Report, with a revenue of 2.804 billion yuan in the 21st year, a year-on-year increase of + 133.26%; The net profit attributable to the parent company was 550 million yuan, a year-on-year increase of + 195.02%. In a single quarter, the revenue of 21q4 company was 817 million yuan, a year-on-year increase of + 97.66% and a month on month increase of + 4.48%; The net profit attributable to the parent company was 156 million yuan, a year-on-year increase of + 122.76% and a month on month increase of + 3.84%.
The profitability of the company has been greatly enhanced, and the proportion of extremely thin copper foil has increased steadily. In 2021, the company expanded its production capacity by means of endogenous extension, achieved rapid increase in production and sales and substantial growth in performance. The company’s sales of lithium battery copper foil in 21 years was about 2.519 billion yuan, with a year-on-year increase of + 133.57% and a gross profit margin of 30.23%, with a year-on-year increase of 4.34 PCT; The sales volume of standard copper foil was about 285 million yuan, with a year-on-year increase of + 130.19%, and the gross profit margin was 28.23%, with a year-on-year increase of 18.37pct. The increase was large, mainly due to the large difference in the gross profit margin of different orders of standard copper foil and the small volume of standard foil business income. Therefore, the change of orders had a great impact on the fluctuation of annual gross profit margin. We expect the company to be 4.5 in 21 years μ m、 6 μ m. Standard copper foil and 8 μ The output of copper foil above M accounts for about 20% / 50% / 8% / 22% of the total output respectively.
With the rapid expansion of production capacity and the increase of research investment, the performance is expected to grow further. In the reporting period of 2021, the company’s 5000 ton technical transformation project was put into operation and met expectations. The project of acquiring Shandong xinliyuan electronic Copper Foil Technology Co., Ltd. was integrated, and the trial production of 5000 ton production line in the 15000 ton project in Baidu shaping Industrial Park was successful. At the same time, the company takes advantage of the demand and increases the research and development of products with ≤ 6 micron ultra-thin copper foil, especially 4.5 micron ultra-thin copper foil. The company’s performance is expected to continue to grow rapidly.
Investment suggestion: the company is expected to realize a net profit attributable to the parent company of RMB 1.082/19.67/2.956 billion from 2022 to 2024, with a year-on-year increase of + 96.7% / 81.8% / 50.2%, corresponding to EPS of RMB 4.62/8.40/12.62 respectively, maintaining the “buy” rating.
Risk tip: the industry competition intensifies, the sales volume of new energy vehicles is lower than expected, and the overseas epidemic situation is repeated.
