\u3000\u30 Jinzai Food Group Co.Ltd(003000) 37 Shenzhen Capchem Technology.Ltd(300037) )
Event 1: on the evening of March 28, the company released its 2021 annual report. In 2021, the company achieved a revenue of 6.951 billion yuan, a year-on-year increase of 134.76%; The net profit attributable to the parent company was 1.307 billion yuan, a year-on-year increase of 152.36%, and the net profit attributable to the parent company after deducting non-profit was 1.233 billion yuan, a year-on-year increase of 156.17%. In 2021q4, the company achieved a revenue of 2.482 billion yuan, a year-on-year increase of 159.81% and a month on month increase of 29.81%; The net profit was RMB 20.44 billion, with a year-on-year increase of RMB 20.44%.
Event 2: on the evening of March 28, the company released the performance forecast for the first quarter of 2022. In the first quarter of 2022, the company expects to realize a net profit attributable to the parent company of 482513 million yuan, with a year-on-year increase of 210230%.
Event 3: on the evening of March 28, the company issued the plan for issuing convertible corporate bonds to unspecified objects. The company plans to raise a total amount of no more than 2 billion yuan (including this amount) for hankang electronic materials “lithium battery additive project with an annual output of 59600 tons”, Tianjin Shenzhen Capchem Technology.Ltd(300037) semiconductor chemicals and lithium battery materials project, Sanming haisifu “high-end fluorine fine chemicals project (phase II)”, Jingmen Shenzhen Capchem Technology.Ltd(300037) lithium battery materials project with an annual output of 283000 tons “and supplementary working capital.
Comments:
Seizing the market opportunities of new energy, semiconductor and other new material industries, the company has excellent performance: in 2021, the company accelerated project construction and production capacity investment, improved the self supply rate of raw materials, realized the rapid growth of production and sales, and achieved brilliant performance. Among them, the battery chemicals business achieved an operating revenue of 5.270 billion yuan, a year-on-year increase of 217.63%. The business of organic fluorine chemicals achieved an operating revenue of 693 million yuan, a year-on-year increase of 23.36%. The operating revenue of capacitor chemicals business was 712 million yuan, a year-on-year increase of 32.49%, and that of semiconductor chemicals business was 214 million yuan, a year-on-year increase of 36.39%. From January to February 2022, the production and sales of the company’s main products increased significantly year-on-year, the sales scale of main products of organic fluorine chemicals business and new fluorine-containing products in semiconductor and other fields expanded, and the operating performance further improved. According to the data of Baichuan Yingfu, the average market price of electrolyte in 2021 was as high as 82300 yuan / ton, with a year-on-year increase of 189.16%. In 2021, the average price of Q4 rose to 113500 yuan / ton, a year-on-year increase of 180.09% and a month on month increase of 20.48%. From January to February 2022, the average price further rose to 120000 yuan / ton, with a year-on-year increase of 181.90% and a month on month increase of 2.06%. The increase of electrolyte volume and price has brought significant performance increment to the company. In the short term, the high outlook of lithium battery industry is expected to continue, and the price of electrolyte will remain high. At the same time, the company has established close cooperative relations with major global customers. It is expected that the sales scale of lithium battery electrolyte will maintain a high growth trend, and is optimistic about the company’s future performance.
The integration process of battery chemicals continues to be promoted, and the industry is expected to continue to be prosperous: the company is one of the leading enterprises in the battery chemicals industry. It has carried out a more comprehensive upstream layout in terms of new lithium salts, carbonate solvents and additives, integrated to build cost barriers, and the capacity scale of battery chemicals is in the leading position in the industry. The company’s lithium battery electrolyte production bases are widely distributed in Huizhou, Guangdong, Nantong, Jiangsu, Suzhou, Fujian Sanming and Jingmen, Hubei. By the end of 2021, the company has 130500 T / a capacity of battery chemicals and 120000 T / a capacity under construction. In the long run, the mismatch between supply and demand of high-quality electrolyte may promote the continuous prosperity of the industry. The company complies with the market development and the expansion of battery chemicals. Fubang new lithium salt project of the company will be put into trial production in 2022q1, Fujian haidefu project is expected to be completed in 2023h1, and Chongqing project, Zhuhai project and Huizhou Zhoubang phase 3.5 solvent expansion project are expected to be completed in 2024. At the same time, the company has also actively arranged overseas integration and differentiated competition with Chinese enterprises. The Polish project is expected to be put into operation in 2022q2, and the 50000 T / a electrolyte and 100000 t / a carbonate solvent constructed in Shenzhen Capchem Technology.Ltd(300037) phase I in the Netherlands are expected to be put into operation in 2024.
The multi-point layout in the fields of organic fluorine chemical industry and capacitance chemicals has helped the steady development of the company. In recent years, the demand for fluorine-containing high-end fine chemicals has increased, the localization substitution has accelerated, and the demand of capacitor market has warmed up in 2021. The company’s business in these two fields has increased steadily. The company has been engaged in fine fluorine chemical industry and capacitance chemical industry for many years. In 2015, the company cut into the field of fine fluorine chemicals by holding Hasford, and then completed the layout of new lithium salt lifsi, fluorine-containing additives, hydrogen fluoride, special fluorine chemicals and other fields, and continued to extend to the upstream of the value chain of organic fluorine chemicals. In terms of capacitor chemicals, the company is the industry leader in China, with complete product categories, advanced technology, stable orders from core customers and high market share. By the end of 2021, the company has 38400 T / a capacity of capacitance chemicals and 4082 T / a capacity of organic fluorine chemicals, and 22000 T / a capacity of organic fluorine chemicals under construction.
The continuous expansion of semiconductor chemical production capacity is expected to become a new performance growth point of the company. Semiconductor chemicals are important supporting materials for semiconductor manufacturing and packaging, and domestic substitution momentum is strong. In the future, with the continuous production of display panels and chip manufacturing plants in China, the market demand for semiconductor chemicals will increase significantly. The company has paid close attention to this development trend and strengthened the layout of hydrogen peroxide, ammonia, etching solution, stripping solution and other semiconductor chemicals, which has been highly recognized by customers. At present, the company has supplied in batches to Shenzhen Huaxing optoelectronics, Xiamen Tianma and other enterprises. Ultra high purity ammonia has also made breakthrough progress in the development of leading customers in the IC industry and achieved stable delivery. By the end of 2021, the company has 45700 T / a capacity of semiconductor chemicals and 30000 T / a capacity under construction. Previously, the company had planned a total capacity of 210000 T / A in Chongqing and Zhuhai. The momentum of production expansion is strong. After completion, it is expected to contribute a good performance increment to the company.
Profit forecast, valuation and rating: the company’s performance in 2021 is in line with expectations. Under the background of the high prosperity of lithium battery and semiconductor industry, the company’s performance is expected to continue to release due to the gradual release of the company’s new production capacity. We raised the company’s profit forecast from 2022 to 2023 and added the profit forecast for 2024. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 19.27 (up 10.6%) / 23.46 (up 7.8%) / 2.654 billion yuan respectively, and the converted EPS will be 4.67/5.69/6.43 yuan / share respectively. The current share price corresponds to about 17 times of PE in 2022. Maintain the company’s “buy” rating.
Risk tip: production capacity construction risk, product price decline, raw material cost rise, and downstream demand is lower than expected.
