\u3000\u30003 China Zhenhua (Group) Science & Technology Co.Ltd(000733) 00073)
Event: Beijing Easpring Material Technology Co.Ltd(300073) disclosure of 2021 annual report.
The annual performance increased significantly, and the volume of Q4 in a single quarter was obvious. In 2021, the company achieved a revenue of 8.258 billion yuan, a year-on-year increase of + 159%; The net profit attributable to the parent company was 1.091 billion yuan, a year-on-year increase of + 183%; The net profit deducted from non parent company was 823 million yuan, a year-on-year increase of + 238%. Non recurring gains and losses mainly include: (1) forward foreign exchange settlement to account, Hunan Zhongke Electric Co.Ltd(300035) stock sale and gains from changes in fair value of 163 million yuan; (2) Bike and other accounts were recovered, and the bad debt was reversed by 117 million yuan.
21q4, the company achieved a revenue of 3.086 billion yuan, a year-on-year increase of + 167% and a month on month increase of + 41%; The net profit attributable to the parent company was 364 million yuan, with a year-on-year increase of + 203% and a month on month increase of + 30%; Deduction of net profit not attributable to the parent company was 310 million yuan, a year-on-year increase of + 1723% and a month on month increase of + 39%.
The gross profit margin is under pressure and the expense rate is well controlled, driving the rise of net interest rate against the trend. In terms of profitability, in 2021, the company’s gross profit margin was 18.24%, with a year-on-year increase of -0.97pcts; Net interest rate 13.21%, year-on-year + 1pcts; The sales / management / R & D / financial expense ratio was 0.54% / 2.06% / 4.07% / 0.02% respectively, with a year-on-year rate of -0.37 / – 0.72 / – 0.59 / – 1.52pcts respectively, and the total expense ratio was 6.69%, with a year-on-year rate of -3.2pcts.
The production capacity is expected to double in 22 years, accelerate the construction of factories at sea and consolidate the global market position. In 21 years, the company produced 49700 tons, a year-on-year increase of + 101%. Among them, RMB 36100 tons, a year-on-year increase of + 113%; Lithium cobaltate was 35000 tons, up + 18% year-on-year. The sales volume was 47000 tons, a year-on-year increase of + 97%. The annual net profit of positive deduction not attributable to parent company is about 16400 yuan / ton. With the production of 50000 tons of high nickel in Changzhou in the second half of this year, we expect the company’s ternary production capacity to reach 91000 tons by the end of 22. In the past 21 years, shipments from international customers accounted for about 70%, and the company’s globalization characteristics were remarkable. At present, the company is promoting the production capacity of 100000 tons in the first phase in Europe. In addition, it plans to establish a new factory in South Korea or the United States with SK as a joint venture, and the idea of global expansion is clear.
New products of ultra-high nickel, iron lithium and solid materials have been promoted in an orderly manner, and the company’s technical advantages have been continuously consolidated. The company has sufficient technical reserves for the next generation of new products, and ni95 has completed the verification of international customers; The process of iron lithium products has been finalized, and 300000 tons of integrated production capacity is planned in Guizhou; Solid state battery materials have been imported into Ganfeng lithium battery, satellite blue and other customers to realize mass sales.
Profit forecast and Valuation: we expect the company to realize the net profit attributable to the parent company of RMB 1.493/2.160/2.471 billion from 2022 to 2024, with a year-on-year increase of 36.8% / 44.7% / 14.4% respectively, and the corresponding PE is 25.5/17.6/15.4 times respectively, maintaining the “overweight” rating.
Risk warning: downstream demand is less than expected; The company’s capacity construction is less than expected; New product development is not as expected; Policy change risk
