\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 499 Keda Industrial Group Co.Ltd(600499) )
Event: the company released its annual report for 2021, and achieved a revenue of 9.797 billion yuan, a year-on-year increase of 34.24%; The net profit attributable to the parent company was 1.006 billion yuan, a year-on-year increase of 285%; Deduct non net profit of 952 million yuan, an increase of 9405% year-on-year.
High performance, significantly improved profitability, reduced expense rate and significantly improved operation
In 2021, the company’s revenue and profit increased significantly, mainly due to the release of performance from the simultaneous rise in the volume and price of lithium salt products of Lanke lithium industry, the rapid growth of African business and the improvement of the profit of the main machinery and equipment industry. The gross profit margin and net profit margin increased by 2.87/9.12pct respectively, the expense rate decreased by 3.66 PCT, the operation improved and the profitability increased significantly. In the single quarter of 2021q4, the company achieved a revenue of 2.876 billion yuan, an increase of 21.71% month on month, and a net profit attributable to the parent company of 247 million yuan. The decline was mainly due to the increase of 2200 tons of lithium carbonate inventory by Lanke lithium, the company’s expenditure of 124 million yuan of equity incentive expenses and the provision of environmental protection business.
Lanke lithium successfully released its production capacity, expanded its capacity at low cost and increased its lithium price to achieve both volume and price
In 2021, the production and sales of lithium carbonate of Lanke lithium industry were 22700 / 19200 tons respectively, and the annual operating revenue was 1.853 billion yuan, the net profit was 914 million yuan, the corresponding investment income of Keda was 444 million yuan, the sales price of lithium carbonate was about 109000 yuan / ton, and the net profit per ton was about 48000 yuan; The production and sales of 21q4 lithium carbonate were 0.64/0.42 million tons respectively, the inventory was increased by 2100 tons, the revenue was 615 million yuan, the net profit was 241 million yuan, the sales price of lithium carbonate was about 166000 yuan / ton, and the net profit per ton was 574 million yuan. The profitability increased significantly with the rise of lithium price. The subsequent lithium price center is expected to remain high supported by the relationship between supply and demand. Lanke lithium has a low cost of raising lithium, and is expected to fully enjoy the performance elasticity brought by the high lithium price with the gradual release of production capacity.
Seize the opportunity, the production and sales of ceramic machinery business are booming, the ceramic business in Africa is developing at a high speed, the production and sales of mechanical equipment in the process of developing South America have increased significantly, with a fixed increase of 2.079 billion yuan, the construction of three major projects to ensure high-quality development, and the construction of kilns has entered the field of lithium materials and equipment; Africa’s business continues to grow rapidly. At present, it has 17 production lines in Africa, of which 12 have been put into operation with an annual capacity of 91 million square meters, and are still in the stage of releasing the performance of construction capacity; In addition, the company has investigated the South American ceramic business and is expected to continue to expand its overseas market in the future.
The integrated layout of negative pole graphitization has been improved day by day. The long-term annual capacity reaches 90000 tons, and the performance can be released. The company has formed an integrated capacity layout of “50000 tons / year forged coke-30000 tons / year graphitization-10000 tons / year artificial graphite-1000 tons / year silicon carbon negative pole”. This year, 10000 tons of graphitization and 10000 tons of artificial graphite capacity will continue to be added. Fujian Kehua has been approved to build 50000 tons of graphitized negative pole capacity, which is expected to start construction in the second half of the year, It is estimated that the production capacity will be 40000 tons in 22 years and 90000 tons in the long term, and the subsequent profit release can be expected. Investment suggestion: Based on the high-quality development of the company’s mechanical equipment business, the rapid growth of business in Africa and the expected increase in volume and price of Lanke lithium, we raised the net profit attributable to the parent company in 22 / 23 / 24 to 4.569/54.32/6.288 billion yuan respectively, corresponding to 7 / 6 / 5 times of PE respectively, maintaining the “buy” rating.
Risk tip: the business development and production capacity progress of ceramic machinery and overseas ceramics are not as expected; Falling product prices
