\u3000\u30003 Shenzhen Leaguer Co.Ltd(002243) 00224)
The company released its annual report for 2021: in 2021, the company achieved a revenue of 3.37 billion yuan, a year-on-year increase of 72.5%; The net profit attributable to the parent company was 265 million yuan, a year-on-year increase of 99.2%; Net profit deducted from non parent company was 255 million yuan, with a year-on-year increase of 128.8%. In 2021q4, the company achieved a revenue of 969 million yuan, an increase of 58.9% year-on-year and 3.3% month on month; The net profit attributable to the parent company was 81 million yuan, a year-on-year increase of 127.6% and a month on month increase of 17.4%; Net profit deducted from non parent company was 74 million yuan, with a year-on-year increase of 232% and a month on month increase of 6.1%. The performance is in line with our expectations.
Under the background of “double carbon”, there is a strong demand for high-performance NdFeB magnetic materials, which promotes the high growth of the company’s revenue. In 2021, under the background of “double carbon”, the growth of sales in wind power generation, variable frequency air conditioning, industrial automation and other fields led to the growth of the company’s revenue of Nd-Fe-B magnetic materials. The sales volume of NdFeB permanent magnet materials of the company increased by 57.64% to 10398 tons year-on-year, and the revenue increased by 70.83% to 3.305 billion yuan year-on-year, accounting for 98.0% of the revenue. Among them, the sales volume of neodymium iron boron used by the company’s automobile industry (including new energy vehicles) increased by 70% to 6404 tons year-on-year, and the revenue exceeded 1.8 billion yuan, accounting for about 56%; The revenue of new energy vehicles exceeded 1.1 billion yuan, accounting for 33%.
In 2021, Shanghai daxun undertook a number of new product development projects, which significantly reduced losses. As the new motor products are in the development stage and have not yet achieved mass production, the sales volume of motor drive system of new energy vehicles in Shanghai daxun in 2021 decreased by 16.18% to 2430 units year-on-year. However, the sales revenue of Shanghai daxun is mainly based on development fees, the revenue increased significantly by 227.51% to 66.29 million yuan year-on-year, and the net loss decreased by 565004 million yuan to 36.65 million yuan year-on-year. The company is strengthening the cooperation with strategic partners through capital and management support to improve the operation of Shanghai Dajun.
The net interest rate in 2021q4 increased by 2.37pct year-on-year and 0.9pct month on month. 1) Gross profit and net profit increased by rmb3.724 million on a year-on-year basis, mainly due to a year-on-year increase of rmb5.724 million; In addition, the expenses during 2021q4 decreased by 3.06 million yuan year-on-year, which increased the company’s 2021q4 net interest rate by 2.37 PCT year-on-year. 2) On a month on month basis, the increase of expenses, taxes and other / investment income of the company in 2021q4 exceeded the impairment loss of the company, which increased the net interest rate of Q4 by 0.9pct.
In the future, with the expansion of production capacity and the release of demand in downstream areas such as new energy vehicles, the company’s profit is expected to increase. In 2021, the company has a capacity of 16000 tons of high-performance NdFeB magnetic materials. With the gradual production of East-West plant (1000 tons), Fuhai base (1000 tons) and Jiangsu Nantong base (18000 tons), the company is expected to have a capacity of 24000 tons of high-performance NdFeB magnetic materials in 2022 and 36000 tons in 2026. At the same time, the company has entered the supply chain of the world’s mainstream auto enterprises, accounting for more than 50% of the revenue in the auto market. In addition, it also has many high-quality customers. In the future, the release of demand in downstream areas will promote the growth of the company’s performance.
Investment suggestion: we expect to realize the net profit attributable to the parent company of RMB 395 / 490 / 584 million in 2022, 2023 and 2024, with a year-on-year increase of 49.07% / 23.99% / 19.20% and EPS of RMB 0.48/0.60/0.71/share respectively. Considering that the company has high-performance NdFeB projects under construction and strong downstream demand for magnetic materials, the company’s production capacity will be gradually released in the future, and the performance is expected to increase. The PE corresponding to the closing price on March 29 is 28 / 22 / 19 respectively, maintaining the “recommended” rating.
Risk tip: risk of price fluctuation of rare earth raw materials; The construction and operation of the project are not as expected; Risks of intensified industry competition, etc.
