\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 69 Shenzhen Dynanonic Co.Ltd(300769) )
Event overview. On March 29, 2022, the company released its annual report for 2021, with annual revenue of 4.842 billion yuan, a year-on-year increase of 413.9%. The net profit attributable to the parent company was 801 million yuan, a year-on-year turnaround, and the net profit attributable to the parent company after deduction was 770 million yuan, a year-on-year turnaround, which was consistent with the previous performance express. The annual gross profit margin was 28.9%, with an increase of 18.5pct, and the net profit margin was 16.6%, with an increase of 20.3pct.
21q4 performed well. Revenue and net profit: the company’s 2021q4 revenue was 2.571 billion yuan, a year-on-year increase of 599.71%, a month on month increase of 157.90%, the net profit attributable to the parent company was 574 million yuan, a year-on-year increase of 323608%, a month on month increase of 426.53%, and the net profit after deduction was 521 million yuan, a year-on-year increase of 270951% and a month on month increase of 392.48%. Gross profit margin: the gross profit margin in 2021q4 was 34.50%, 23.93% year-on-year and 11.08% month on month. Net interest rate: the net interest rate of 2021q4 was 21.72%, 27.04% year-on-year and 10.42% month on month. Inventory: at the end of the 21st century, the inventory of raw materials reached 889 million, realizing better inventory management.
Rapid growth of production capacity. The company will ship 91000 tons in 21 years, and we expect equity to ship 82000 tons; According to the company’s capacity plan, we expect the equity capacity to be 200000 or 310000 tons in 22-24 years, which is expected to maintain full production and sales. The company has steadily promoted various businesses: the new capacity under construction and planning includes Qujing German Party’s “production base project with an annual output of 110000 tons of new phosphate positive materials”, Defang Yiwei’s “production base project with an annual output of 100000 tons of lithium iron phosphate”, Yibin German Party’s “project with an annual output of 80000 tons of lithium iron phosphate”, Zhanyi German Party’s “project with an annual output of 200000 tons of lithium iron phosphate precursor” Qujing German innovation group’s “annual output of 20000 tons of lithium supplement agent project” and its subsidiary Yunnan German Party’s “annual output of 330000 tons of new phosphate cathode material production base project”.
The company has established technical barriers in liquid phase method, lfmp and positive lithium supplement. The company adopts the liquid-phase method to prepare LFP, which has the advantages of cost and technology. The liquid-phase method has excellent product cycle performance and is suitable for energy storage application scenarios, which will benefit from the high growth of downstream. The company took the lead in realizing the industrialization of new lithium salt by investing in the construction of 330000 tons of new lithium iron phosphate capacity; At the same time, 3.5 billion yuan was invested to build a lithium supplement with an annual output of 25000 tons. On the premise that the cost of single GWH is basically unchanged, LMFP plus positive lithium supplement can improve the first effect, cycle times and energy density by 10-20%.
Investment suggestion: considering the company’s advantages in technology and production capacity, we expect the net profit attributable to the parent company to reach 1.366 billion yuan, 2.165 billion yuan and 2.394 billion yuan from 2022 to 2024, with a year-on-year increase of 71%, 59% and 11% respectively. The current share price corresponds to 37, 23 and 21 times of PE from 2022 to 2024. Considering that the company is the positive leader of LFP, maintain the “recommended” rating.
Risk warning: the global demand for new energy vehicles is less than expected; Capacity expansion is slower than expected; The progress of capacity expansion is less than expected; The progress of new technology development is less than expected.
