\u3000\u3 Guocheng Mining Co.Ltd(000688) 005 Ningbo Ronbay New Energy Technology Co.Ltd(688005) )
Event: on March 30, Ningbo Ronbay New Energy Technology Co.Ltd(688005) released its annual report for 2021, with a total operating revenue of 10.259 billion yuan, a year-on-year increase of 170.36%; The net profit attributable to the parent company was 911 million yuan, a year-on-year increase of 327.59%; Deduct non net profit of 808 million yuan, with a year-on-year increase of 404.73%; Operating cash flow was -192 million yuan, a year-on-year decrease of 127.10%. Among them, the company’s Q4 revenue was 4.008 billion yuan, a year-on-year increase of 176.62%; The net profit attributable to the parent company was 362 million yuan, a year-on-year increase of 263.81%; Deduct non net profit of RMB 339 million, with a year-on-year increase of 380.87%.
The gross profit of cathode materials increased significantly. According to the annual report data of the company, the sales volume of cathode materials of the company in 21 years was 52000 tons, with a year-on-year increase of 99.27%; The gross profit per ton was 28400 yuan / ton, with a year-on-year increase of 65.69%. The gross profit margin of the company’s sales in 21 years was 15.31%, with a year-on-year increase of 3.52 percentage points, of which the gross profit margin of cathode materials was 15.51%, with a year-on-year increase of 3.26 percentage points; The gross profit margin of front body business was 3.45%, an increase of 3.83 percentage points year-on-year.
Production capacity increased rapidly. According to the company’s annual report data, the demand of downstream customers for high nickel ternary materials increased rapidly in 21 years. The company actively responded to the market demand, and the high nickel production capacity increased from 40000 tons / year at the beginning of the year to 120000 tons / year at the end of the year. Among them, Ezhou, Hubei, has become the largest production base of high nickel ternary materials in the world, with a production capacity of more than 100000 tons / year. The company continuously iterates production line design, engineering equipment and other comprehensive capabilities, and the new capacity can produce many types of products such as ncm811, ni90 and above ultra-high nickel, NCA ternary materials and NCMA quaternary materials on a large scale. At the same time, it also has good compatibility for single crystal and polycrystalline products.
Customers continue to develop. According to the annual report data of the company, the company has signed Contemporary Amperex Technology Co.Limited(300750) a strategic cooperation agreement with the world’s leading power battery enterprises, specifying that the company will be the first supplier of ternary cathode powder from 2022 to 2025. At the same time, Farasis Energy (Gan Zhou) Co.Ltd(688567) , honeycomb energy, Weilai automobile, satellite blue battery and other important customers have also signed strategic cooperation agreements with the company one after another; Overseas customers such as skon, SDI, northvolt, ACC and saft have also launched various types of cooperation. In the field of small power, the company has established cooperation with customers such as ATL and Tianpeng energy.
Accelerate the promotion of new products. According to the company’s annual report data, the company’s high nickel single crystal ni90 products have entered the mass production stage, and nickel 96 and multivariate high energy density NCMA products have entered the production line commissioning stage; Ncm811 sintering process optimization research has entered the mass production stage, and the product indexes after sintering process optimization are consistent with those before optimization; After optimization, the production cost per ton is reduced by more than 10%; The process design, development and research of the new high nickel production line have entered the trial production stage, and the production line equipment suitable for large production capacity has been successfully developed; The production capacity per unit production line increased by more than 40%; The production cost per ton is reduced by more than 15%.
At the current time point, we continue to be optimistic about the growth sustainability of the company’s cathode materials. We believe that the power battery of new energy vehicles will maintain a high growth from 22 to 23 years, resulting in the continuous increase of the company’s demand for ternary cathode.
Investment suggestion: due to the strong demand in the downstream new energy vehicle market and the rapid expansion of production by lithium battery manufacturers, the company’s main products are full of orders for high nickel ternary cathode materials, the release of new production capacity is accelerated, the sales volume is greatly increased, the superimposed selling price is increased, the capacity utilization is improved, and the scale effect drives further cost reduction and efficiency increase. We expect the net profit attributable to parent company in 20222023 to be 2.01 billion and 2.99 billion respectively (the value before adjustment is 1.59 billion and 2.11 billion), Corresponding to pe31x and 21x, maintain the “buy” rating.
Risk warning: the sales volume of new energy vehicles is lower than expected, the technical process changes, and the information and data used in the research report are not updated in time.
