\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 69 Shenzhen Dynanonic Co.Ltd(300769) )
Performance:
The company released the annual report of 2021. The annual revenue was 4.842 billion yuan, a year-on-year increase of + 413.93%, the net profit attributable to the parent was 801 million yuan, a year-on-year increase of + 291898%, and the non net profit deducted was 770 million yuan, a year-on-year increase of + 132582%; Among them, Q4’s single quarter revenue was 2.571 billion yuan, a year-on-year increase of + 599.71%, a month on month increase of + 157.87%, and the net profit attributable to the parent company was 556 million yuan, a year-on-year increase of + 333422%, a month on month increase of + 410.09%, deducting 549 million yuan of non net profit, a year-on-year increase of + 306270% and a month on month increase of + 419.33%. The double rise of volume and profit brought high performance growth.
The volume and price of lithium iron phosphate cathode increased simultaneously, and the net profit of Q4 per ton was 16000 yuan / ton
In 2021, the company’s annual shipment of lithium iron phosphate cathode materials was 91000 tons, and the net profit per ton is expected to be about 8600 yuan / ton; Among them, Q4 single quarter shipment is about 35000 tons, and the net profit per ton is expected to be about 16000 yuan / ton. The profitability of lithium iron phosphate cathode materials of the company has been greatly improved. We believe that on the one hand, the company benefits from the inventory income from the rise in the price of raw materials. On the other hand, the downstream demand is strong, the product supply is in short supply, the price of lithium iron continues to rise, the production and sales of the company are booming, and the economies of scale are prominent.
The planned capacity of cathode materials is 780000 tons, and new phosphate series cathode materials are actively distributed
At present, the company has a capacity of 120000 tons of lithium iron phosphate cathode and plans to have a capacity of 230000 tons, including 80000 tons of joint venture with Contemporary Amperex Technology Co.Limited(300750) and 100000 tons of joint venture with Eve Energy Co.Ltd(300014) and another 50000 tons of self owned capacity. It is expected that the capacity of lithium iron phosphate cathode will reach about 350000 tons by the end of 2022. In terms of new materials, the company actively arranged the construction capacity. In September 2021 and January 2022, the company signed the production base project of new phosphate cathode materials with an annual output of 100000 tons and 330000 tons respectively. The planned total capacity is 430000 tons. It is expected that the new cathode capacity of 100000 tons will be put into operation by the end of 2022 and contribute to the volume of goods in 23 years.
Take the lead in the layout of lithium supplement business to further improve the profitability of the company
The company took the lead in the layout of lithium supplement business. In September 2021, the company announced that it planned to invest 3.5 billion yuan to build a 25000 ton lithium supplement project, and officially laid out the lithium supplement industry chain. In January 2022, a further investment of 2 billion yuan will be made to expand the lithium supplement project of 20000 tons, with a cumulative planned production expansion of 45000 tons. Lithium replenishing agent is mainly used to improve the first efficiency and cycle life of lithium battery. With the demand for silicon-based negative electrode, the company is expected to share the excess benefits brought by the high growth of lithium replenishing business and further improve its profitability.
Investment suggestion: we raised the net profit attributable to the parent company in 202224 to RMB 1.422/20.08/2.897 billion, and the corresponding PE was 35x / 25X / 17x respectively, maintaining the “buy” rating.
Risk tip: the decline of product price, the release progress of production capacity and the development of the industry are lower than expected.
