\u3000\u30003 Shenzhen Leaguer Co.Ltd(002243) 00224)
Key investment points
In 2021, the net profit attributable to the parent company increased by 99.22% year-on-year: in 2021, the company realized an operating revenue of 3.37 billion yuan, an increase of 72.46% year-on-year; The gross profit margin was 19.58%, a year-on-year decrease of 2.17 percentage points; The net profit attributable to the parent company was 265 million yuan, with a year-on-year increase of 99.22%, and the net interest rate was 7.87%, with a year-on-year increase of 1.06 percentage points; EPS is 0.32 yuan.
Q4’s revenue hit a new high of low unit price, and its profit rebounded slightly month on month: Q4 achieved a revenue of 969 million yuan, an increase of 3.33% month on month, hitting a new high of the company’s revenue in a single quarter; The gross profit margin was 18.88%, up 0.53 percentage points month on month; The net profit attributable to the parent company was 82 million yuan, an increase of 17.44% month on month, the net interest rate was 8.41%, an increase of 1 percentage point month on month, and the EPS in a single quarter was 0.10 yuan.
The field of new energy vehicles has become the core growth point: under the background of the sharp rise in the price of upstream raw material praseodymium and neodymium oxide, the company effectively transmits cost pressure through capacity expansion, technology addition and optimizing product structure. In 2021, the output of neodymium iron boron permanent magnet materials of the company was 10921 tons, with a year-on-year increase of 63.71%, of which the sales volume of high-performance neodymium iron boron was 6404 tons, with a year-on-year increase of 70.09%, accounting for 60% of the output; The delivery volume of motor magnets for energy-saving and new energy vehicles was 1.89 million sets, a year-on-year increase of 97%, and the sales revenue in the field of energy-saving and new energy vehicles market increased by 110% year-on-year. The operating revenue of the motor drive system business of Shanghai Dajun new energy vehicle, a foreign subsidiary, increased by 228% compared with the same period last year, and the net profit decreased by 60% compared with the same period last year.
The capacity of both markets has been expanded, and the overseas market has continued to increase rapidly: from the perspective of sales region, the revenue of the Chinese market and the overseas market has increased by 74.03% and 69.80% respectively year-on-year. Among them, the overseas market has maintained a high growth of 38% – 70% for four consecutive years, and the market share of 37% has remained unchanged; Top 5 customers accounted for 48.1% of sales revenue, down 1.79 percentage points year-on-year, and the cooperation with core customers was still relatively stable.
In 2022, the company entered the release period of new capacity: by 2021, the company’s annual capacity was 16000 tons / year. The capacity under construction in the East and West plants is 2000 tons / year, and it is planned to reach the capacity in Q1 in 2022; The capacity of Fuhai plant under construction is 1000 tons / year, and it is planned to reach the capacity in Q4 in 2022; The design capacity of Nantong base is 18000 tons / year. It is planned to put into operation 6000 tons in 2022 and 2023 respectively, and reach the production capacity before 2026, when the production capacity will reach 36000 tons.
Technology leadership, business and customer layout ensure future growth: the company has three core technologies: oxygen free process (zhofep), fine crystal technology (TOPS) and heavy rare earth diffusion technology (thred); It can produce eight categories and more than 50 brands of high-performance NdFeB permanent magnet materials from n to zh. It is one of the most complete manufacturers of high-performance NdFeB permanent magnet materials in China. It has more than 150 authorized and pending invention patents, and its technical strength has reached the international advanced level. Nine of the top ten automobile manufacturers in the world have achieved mass production or fixed-point production, ranked as the first-class supplier of many automobile main engine manufacturers, and entered the core supply chain of many new power automobile enterprises. The combination of technology and customer advantages and capacity expansion is expected to ensure that the company can improve its market share and fully share the high boom of electrification.
Investment suggestion: we predict that the company’s earnings per share from 2022 to 2024 will be 0.54, 0.93 and 1.14 yuan respectively. The return on net assets was 13.5%, 19.0% and 18.9% respectively, maintaining the overweight-a proposal.
Risk tip: the investment and production schedule of new projects are less than expected, the downstream demand of new energy vehicles is less than expected, and the price of rare earth is higher than expected.
