\u3000\u3 Shengda Resources Co.Ltd(000603) 659 Shanghai Putailai New Energy Technology Co.Ltd(603659) )
Events
Shanghai Putailai New Energy Technology Co.Ltd(603659) ( Shanghai Putailai New Energy Technology Co.Ltd(603659) ) recent announcement: 1) the company released the 2021 annual report, realizing revenue of 9 billion yuan / yoy + 70% and net profit attributable to parent company of 1.75 billion yuan / yoy + 162%; 2) The company issues stock options and restricted stock incentive plans.
Key investment points
The performance is eye-catching and the business continues to improve
In 2021q4, the company achieved a revenue of 2.7 billion yuan / yoy + 40% / QoQ + 14%, a net profit attributable to the parent company of 520 million yuan / yoy + 105% / QoQ + 14%, and a deduction of non attributable net profit of 500 million yuan / yoy + 107% / QoQ + 14%. The gross profit margin of 2021q4 is 35% / QoQ + 0.9pct, and the net profit margin is 20% / QoQ + 0.4pct, with eye-catching performance. On the whole, the company’s businesses have made concerted efforts, the sales volume and income have maintained rapid growth, and the overall profitability has continued to improve.
In terms of business, 1) cathode business: in 2021, the sales volume was 97000 tons / yoy + 54%, the revenue was 5.1 billion yuan / yoy + 41%, and the gross profit margin was 29.5% / yoy + 4.2pct; The income from graphitization processing is 1 billion yuan (including internal sales) / yoy + 25%, and the gross profit margin is 34.5% / yoy + 1.31pct; 2) Aluminum plastic film and optical film business: in 2021, the sales volume is 11.48 million square meters / yoy + 51%, the revenue is 141 million yuan / yoy + 50%, and the gross profit margin is 28.8% / yoy + 4.7pct; 3) Diaphragm and coating processing business: in 2021, the sales volume was 2.171 billion Ping / yoy + 207%, accounting for 35% / yoy + 8.51 pct of China’s wet process shipments, realizing a revenue of 2.195 billion yuan / yoy + 171% and a gross profit margin of 39.85% / yoy-0.61 PCT. In terms of coating materials, PVDF achieved a revenue of 447 million yuan (including internal sales) in 2021, with a gross profit margin of 28%. 4) Equipment business: in 2021, the revenue was 1.368 billion yuan / yoy + 109%, the sales volume was 477 units / yoy + 125%, and the gross profit margin was 26.5% / yoy-5.84pct. By the end of 2021, the company’s orders for coating machines (excluding domestic sales) exceeded 4 billion yuan (including tax) / yoy + 170%.
Strong demand and positive capital expenditure to increase production capacity
With strong demand, the company has increased its capacity layout. In 2021, the company’s capital expenditure reached about 2.7 billion yuan / yoy + 256%, the construction in progress at the end of 2021 was about 1.2 billion yuan / yoy + 49%, and the fixed assets reached about 4.7 billion yuan / yoy + 89%. By the end of 2021, the company’s negative electrode effective capacity was more than 150000 tons, the graphitization capacity reached 110000 tons, and the self-sufficiency rate of graphitization exceeded 70%; The company has formed a base film production capacity of about 100 million square meters, a coating processing capacity of 4 billion square meters, 8000 tons of boehmite and nano alumina and 5000 tons of PVDF. It is estimated that more than 400000 tons of negative electrode material + 1.3 billion flat base film + 25000 tons of PVDF + 10 billion flat coating processing capacity will be formed in 2024. By the end of 2021, the company’s monetary capital + trading financial assets were about 5.5 billion yuan, short-term loans + long-term loans were about 2.2 billion yuan, and its balance sheet was healthy. The net cash flow from operating activities of the company in 2021 is about + 1.7 billion yuan, which is highly matched with the net profit and has good collection quality.
We believe that the company’s healthy balance sheet and good collection quality will strongly support the company’s capital expenditure. The company’s medium and long-term planning is clear, focusing on businesses such as cathode + diaphragm, continuously deepening the integrated layout and strengthening cost competitiveness.
High standards for equity incentive assessment, highlighting medium – and long-term growth confidence
The company issued stock option incentive plan and restricted stock incentive plan. The exercise price of stock option is 138.68 yuan / share and the grant price of restricted stock is 69.34 yuan / share. Among them, the performance (net profit attributable to the parent company) assessment objectives of stock options in 2022, 2023 and 2024 are no less than 2.6 billion yuan / 4 billion yuan / 5.4 billion yuan respectively; Restricted stocks take income as the assessment index, and the income in 2022, 2023 and 2024 is required to be no less than 12.5 billion yuan / 16.5 billion yuan / 21.5 billion yuan respectively.
In terms of the overall performance assessment, the growth rate is 32% in 2023 and 35% in 2024, respectively. We believe that the company will focus on negative pole + diaphragm, strengthen the integrated strategic layout, and build a platform enterprise by binding excellent talents, which is expected to promote the long-term sustained and high growth of the company.
Profit forecast
It is estimated that the net profit attributable to the parent company in 2022, 2023 and 2024 will be RMB 2.9/42/5.5 billion respectively, EPS will be RMB 4.19/6.01/7.98, and the corresponding PE will be 31 / 22 / 16 times respectively. Based on the company’s high-quality track, we embrace high-quality customers such as LGC, ATL and catl, actively spend capital, strengthen the integrated layout, meet the future development trend, and the talent incentive is in place. We are optimistic about the medium and long-term upward development opportunities of the company and give a “recommended” rating.
Risk tips
Policy fluctuation risk; Downstream demand is lower than expected; The product price is lower than expected; Risk of deterioration of competition pattern; Capacity expansion and digestion were less than expected.
