\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 48 Jl Mag Rare-Earth Co.Ltd(300748) )
Key investment points
In 2021, the net profit attributable to the parent company increased by 85.32% year-on-year: in 2021, the company realized an operating revenue of 4.080 billion yuan, a year-on-year increase of 68.78%; The net profit attributable to the parent company was 453 million yuan, a year-on-year increase of 85.32%; The gross profit margin was 22.42%, a year-on-year decrease of 1.73 percentage points; The net interest rate was 11.12%, with a year-on-year increase of 1.01 percentage points. The distribution plan is to pay a cash dividend of 2.50 yuan for every 10 shares.
Affected by the surge in financial expenses, the net profit of Q4 decreased by 22.76% month on month: the company's Q4 revenue was 1.162 billion yuan, a year-on-year increase of 45.04% and a month on month increase of 4.74%; The net profit attributable to the parent company was 102 million yuan, an increase of 10.70% year-on-year and a decrease of 22.76% month on month; The gross profit margin was 21.31%, an increase of 1.27 percentage points month on month; Affected by the increase of financial expense rate from - 0.08% in Q3 to 4.46% in Q4, the net interest rate was 8.77%, down 3.07 percentage points month on month.
High technology added to optimize the product structure, and the gross profit per unit product increased by 32.13%. In 2021, the company's output of high-performance rare earth permanent magnet materials was 10325 tons, with a year-on-year increase of 7.41%, of which 6064 tons of high-performance rare earth permanent magnet products were produced by grain boundary infiltration technology, with a year-on-year increase of 47.51%, accounting for 58.73% of the company's total product output in the same period, an increase of about 16 percentage points over the same period of last year. The permeability of ultra-high magnetic products accounts for about 3456% of that of ultra-high magnetic products. By continuously improving the technology addition and optimizing the product structure, the company realized the gross profit per unit magnetic material of 131100 yuan / ton, with a year-on-year increase of 32.13% under the condition that the unit raw material cost increased by 37.6%. According to frost Sullivan report, the company's product output using grain boundary infiltration technology in 2020 has ranked first in the world, accounting for about 21.3% of the global market share.
Continued high growth in R & D Investment: in 2021, the company invested 160 million yuan in R & D, with a year-on-year increase of 55.23%, accounting for 3.93% of operating revenue. Four new invention patents were authorized, 10 utility model patents were authorized, and another 20 patent applications are in the process of trial.
From the downstream, the revenue in the field of new energy vehicles increased by 222.73%. In 2021, the revenue in the field of new energy vehicles and auto parts reached 1.051 billion yuan, accounting for 25.76% of the operating revenue, an increase of 222.73% over the same period last year. The sales volume of the company's products in this field can be equipped with about 1.24 million new energy passenger vehicles. The company has become a supplier of magnetic materials to Tesla, Byd Company Limited(002594) , United Automotive Electronics, Nippon power, Bosch group, Volkswagen, general motors and other large global groups.
The company's capacity will expand by 160% in the next four years: the neodymium iron boron capacity of the company in 2021 will be 15000 tons / year, and the Baotou project will be fully put into production in 2022, and the blank capacity will reach 23000 tons per year; Ningbo 3000 tons of high-end magnetic materials and 100 million sets of components project is expected to reach production in 2024; Baotou high performance rare earth permanent magnet project (phase II) has a planned capacity of 12000 tons / year and is expected to reach production in 2024; The planned production capacity of Ganzhou high efficiency and energy-saving magnetic material project for motor is 2000 tons / year, and it is expected to reach the production capacity in 2025; It is expected that the company will build high-performance NdFeB permanent magnet materials in 2025, with an annual production capacity of 40000 tons, an increase of 160% over the end of 2021, which is expected to fully share the high prosperity of the industry.
H-share fund-raising helps the company's capacity expansion: the company successfully landed on the main board of the stock exchange of Hong Kong on January 14, 2022, becoming the world's first "a + H" listed company in the high-performance rare earth permanent magnet material industry, selling 125 million overseas listed foreign shares (H shares), raising about HK $4.241 billion for the construction of production bases, expansion of global industrial chain layout and technology research and development.
Investment suggestion: we expect that from 2022 to 2024, the company's earnings per share after diluted according to the latest share capital will be 0.82, 1.19 and 1.50 yuan respectively, and the return on net assets will be 18.8%, 22.2% and 22.7% respectively, maintaining the buy-b suggestion.
Risk tips: the release of capacity under construction is less than expected, the price rise of rare earth raw materials is more than expected, the growth rate of downstream demand is less than expected, export policy and exchange rate risk.
