\u3000\u3 Guocheng Mining Co.Ltd(000688) 733 Anhui Estone Materials Technology Co.Ltd(688733) )
Core conclusion
Event: the company released the annual report of 2021. The annual revenue was 423 million yuan, a year-on-year increase of + 119.85%, the net profit attributable to the parent company was 108 million yuan, a year-on-year increase of + 139.98%, the gross profit margin was 42.67%, a year-on-year increase of + 5.35 PCT, and the net profit margin was 25.60%, a year-on-year increase of + 2.15 PCT; Among them, 2021q4 achieved a revenue of 147 million yuan, a year-on-year increase of + 102.57%, a month on month increase of + 30.78%, and a net profit attributable to the parent company of 43 million yuan, a year-on-year increase of + 72.53%, a month on month increase of + 95.19%.
The revenue of the company’s core products continued to increase, and the overall performance was in line with expectations. In 2021, the company’s revenue of lithium battery coating materials was 331 million yuan, a year-on-year increase of + 139.55%, and the gross profit margin was 43.98%, a year-on-year increase of + 1.98 PCT; The revenue of electronic communication function filling materials was 66 million yuan, a year-on-year increase of + 71.04%, and the gross profit margin was 36.10%, a year-on-year increase of + 9.62pct; The revenue of low smoke halogen-free flame retardant materials was 25 million yuan, a year-on-year increase of + 66.21%, and the gross profit margin was 42.76%, a year-on-year increase of + 20.41 PCT. More than 70% of the company’s revenue comes from lithium battery coating materials, and the overall performance is in line with expectations.
The company continues to increase investment and actively expand production. The company continues to expand the production capacity of boehmite products, continuously improve the supply capacity and market share, and make sufficient capacity reserves for the subsequent expected market demand. In February 2021, the company invested in the construction of “intelligent production project of boehmite for new energy lithium battery” in Bengbu Free Trade Zone, with an overall planned annual production capacity of 40000 tons. In February 2022, the company plans to implement the “phase II project of intelligent production of boehmite for new energy lithium batteries with an annual output of 80000 tons” in Bengbu free trade zone through its wholly-owned subsidiary Anhui Estone Materials Technology Co.Ltd(688733) new energy, with a total investment of about 1 billion yuan. On the other hand, the company invested in spherical alumina and low- α Alumina and other new materials are expected to make incremental contributions to the company.
Investment suggestion: it is estimated that the company will realize an income of 888 / 1589 / 2656 million yuan in 22-24 years, a year-on-year increase of + 110.1% / + 78.9% / + 67.2%; The net profit attributable to the parent company was 245 / 491 / 800 million yuan, a year-on-year increase of + 126.0% / + 100.9% / + 62.7%, and EPS was 1.34/2.70/4.39 yuan, maintaining the “buy” rating.
Risk warning: boehmite permeability does not meet expectations; Industry competition intensifies.
