\u3000\u3 Guocheng Mining Co.Ltd(000688) 388 Guangdong Jiayuan Technology Co.Ltd(688388) )
Main points:
Event: the company released its annual report for 2021, and achieved an operating revenue of 2.804 billion yuan, a year-on-year increase of 133%; The net profit attributable to the parent company was 550 million yuan, a year-on-year increase of 195%; Deduct non net profit of 497 million yuan, with a year-on-year increase of 204%; The gross profit margin was 30.03%, with a year-on-year increase of 5.79 PCT; The net profit margin of sales was 19.63%, with a year-on-year increase of 4.12pct. The performance is in line with expectations.
The product structure was optimized, the proportion of extremely thin copper foil was increased, and the profitability was continuously enhanced. In the past 21 years, the production and sales of copper foil of the company were 28000 / 27800 tons, with a year-on-year increase of 85% / 74% respectively, and the net profit per ton was about 20000 yuan, with a year-on-year increase of 70%; Among them, the production and sales of copper foil products ≤ 6 microns and below reached 18600 / 18400 tons, with a year-on-year increase of 170% / 139% respectively, and the sales volume accounted for more than 66%. The company's copper foil product structure has been continuously optimized to extremely thin copper foil with high gross profit, and its profitability has been continuously enhanced.
The net profit per ton of copper foil was 21.93 million yuan, with a net profit of 21.84 million yuan; The revenue reached 817 million yuan, an increase of 4% month on month; The net profit attributable to the parent company was 156 million yuan, down 2% month on month, and the net profit per ton was about 19300 yuan, which was basically the same month on month. The reason for the slight decline in the net profit attributable to the parent company was that the financial expense rate increased by 2.6pct to 1.4% due to the issuance of convertible bonds and the provision of interest, and the financial expense reached 40 million yuan.
The rapid expansion of production capacity and the deep binding of downstream high-quality customers highlight the growth capacity of the company: the company has an existing copper foil production capacity of 26000 T / A. in December 21, the first 5000 t / a production line of the company's new 15000 T / a copper foil project in Meixian County has been successfully put into trial production. According to the reply to the inquiry letter, considering the existing production capacity and raised investment projects, the production capacity of the company in 22 / 23 / 24 / 25 will reach 4.51/8.31/10.1010700 T / a respectively; In addition, the company signed a memorandum of intent on joint venture investment with Contemporary Amperex Technology Co.Limited(300750) to jointly build a 100000 t / a high-performance lithium battery copper foil project; 50000 T / a copper foil project invested in Meixian County; Jiangxi Jiayuan construction 15000 T / a copper foil project, a wholly-owned subsidiary. The company's long-term production capacity is planned to reach 270000 tons / year, and the rapid expansion of production capacity provides a solid foundation for the continuous growth of copper foil shipments. In terms of high-quality products, the company has been jointly recognized by large-scale customers and downstream customers.
Investment suggestion: Based on the optimization of the company's product structure, rapid expansion of production capacity, deep binding with downstream high-quality customers and full orders, the net profit attributable to the parent company in 22 / 23 / 24 years was increased to RMB 1.093/18.70/2.613 billion respectively, and the corresponding PE was 18 / 11 / 8 times respectively, maintaining the "buy" rating.
Risk tip: the production capacity is not progressing as expected; Falling product prices; Downstream demand is lower than expected
