\u3000\u30003 China Zhenhua (Group) Science & Technology Co.Ltd(000733) 00073)
Main points:
Event:
The company released its annual report for 2021, and achieved an operating revenue of 8.257 billion yuan, a year-on-year increase of 159%; The net profit attributable to the parent company was 1.09 billion yuan, a year-on-year increase of 183%; Deduct non net profit of 824 million yuan, with a year-on-year increase of 238%; The net profit margin of sales was 13.2%, with a year-on-year increase of 1PCT.
Deep cultivation of overseas high-end market, the volume and price of ternary cathode business increased simultaneously, and the scale of revenue increased significantly
Benefiting from the strong demand for downstream new energy vehicles, the company’s three yuan positive maximum price rose together in 2021, with a revenue scale of 6.91 billion yuan, a significant increase of 180% year-on-year; The company shipped 43600 tons of ternary cathode, a year-on-year increase of 108%; The cost transmission of cathode material manufacturers is relatively smooth, and the product unit price is about 156000 yuan / ton; It is estimated that the net profit per ton in 21 years will be about 16000 yuan, a significant increase compared with 20 years. The global layout remains ahead, with overseas revenue accounting for more than 33%. We work closely with SK, LG and other international head customers, with abundant and stable orders. With profound technical accumulation, the company has accelerated the iteration of high-end power products. It is expected that the proportion of high nickel ternary shipments will increase to 30% in 2022. At present, ni95 and other ultra-high nickel products have successively passed the certification of overseas customers, with significant product advantages.
In 21q4, the parent company’s revenue and profit increased month on month, and the performance continued to be realized
21q4 achieved a revenue of 3.086 billion yuan, an increase of 41.43% month on month; The net profit attributable to the parent company was 363 million yuan, an increase of 29.64% month on month. From January to February this year, the business data were better and the performance continued to be fulfilled.
The capacity of lithium battery materials continues to expand and consolidate the position of ternary cathode industry
Changzhou dangsheng phase II 50000 ton high nickel cathode material project will be put into operation within the year. It is estimated that the company’s effective capacity of ternary cathode will be about 90000 tons in 2022 and 130000 tons in 2023. The 20000 ton 3C digital cathode material project of Jiangsu dangsheng phase IV was started this year, and the 100000 ton lithium battery material project in Europe took substantial steps. The company joined hands with Zhongwei to layout lithium iron phosphate and enhance the advantages of the industrial chain. The company’s production capacity has been released one after another, forming diversified supply, effectively meeting customer demand, and further consolidating its position in the industry.
Investment advice
We raised the company’s net profit attributable to the parent company for 22 / 23 / 24 years to RMB 1.484/22.69/2.612 billion, EPS to 2.93/4.48/5.16 respectively, and the corresponding PE to 26x / 17x / 15x, maintaining the “buy” rating.
Risk tips
The development of new energy vehicles is less than expected; Capacity expansion and product development are less than expected; Material price fluctuation, etc.
