\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 48 Jl Mag Rare-Earth Co.Ltd(300748) )
Event: on March 31, 2022, the company released its 2021 annual report. In 2021, the revenue was 4.080 billion yuan, an increase of 68.8%, the net profit attributable to the parent company was 453 million yuan, an increase of 85.3%, the net profit deducted from non attributable to the parent company was 423 million yuan, an increase of 86.4%, and the net operating cash flow was 1.018 billion yuan, basically the same year-on-year; In a single quarter, the revenue of 2021q4 was 1.162 billion yuan, with a ring increase of 4.7% and a same increase of 45.0%. The net profit attributable to the parent company was 102 million yuan, with a ring decrease of 22.5% and a same increase of 10.7%. The net operating cash flow was - 46.35 million yuan. The decrease in Q4 net profit was mainly due to the significant increase in R & D expenses and financial expenses in a single quarter.
The profitability of the whole year was improved, the short-term cost pressure remained unchanged, and the long-term high boom. In 2021, the company's magnetic steel output increased by 7.4% to 10325 tons, and the sales volume reached 10709 tons; In terms of profitability, the gross profit per unit product increased significantly from 19.2 yuan / kg to 85.4 yuan / kg, a year-on-year increase of 28.8%, reflecting the high prosperity of the rare earth magnetic material industry. The gross profit margin fell 1.8pct to 22.4% in the environment of sharp rise in rare earth prices; The company continued to promote cost reduction and efficiency increase. During the period, the expense rate decreased by 0.5pct to 14.0% year-on-year in 2019, and the net interest rate increased by 1PCT to 11.1%. In a single quarter, the company's Q4 gross profit margin increased by 1.3pct to 21.3%. The gross profit margin level showed an inflection point for the first time after three consecutive quarters of decline. The decline in net profit margin was mainly due to the significant increase in Q4 R & D expenses and financial expenses.
The new energy vehicle sector increased by 2.2 times year-on-year, and the revenue structure continued to be optimized. In 2021, the company's revenue contribution in the fields of new energy vehicles, variable frequency air conditioning and wind power generation accounted for 25.8% / 34.3% / 21.7% respectively. Among them, the revenue in the field of new energy vehicles increased by 22.7% to 1.051 billion yuan, accounting for 12.3pct to 25.8%. The product sales volume can be equipped with about 1.24 million new energy vehicles, accounting for 35.2% in China and 18.2% in the world; The revenue in the field of variable frequency air conditioning increased by 59.4% to 1.4 billion yuan, and the sales volume of magnetic steel products of variable frequency air conditioning can be equipped with about 48.5 million sets of variable frequency air conditioning compressors; The revenue in the field of wind power generation was basically flat year-on-year. The company actively worked in the field of new energy vehicles to achieve large-scale growth and continuously optimize the revenue structure. In addition, the company's output of high-end products reached 6064 tons, accounting for a significant increase of 15.9 PCT to 58.7%, and the proportion of high-end products further improved the company's overall profit level.
The 40000 ton capacity planning was clear, and the planning of Baotou base doubled. With the company's Baotou 8000 ton project put into operation, the company's blank production capacity will reach 23000 tons / year in 2022. The 3000 ton high-end magnetic materials and components project under construction in Ningbo is expected to be completed and put into operation in 2023. According to the disclosure of the annual report, the company plans to invest 720 million yuan in Ganzhou to invest in the construction of high-efficiency and energy-saving magnetic material base for motor (2000 tons) and 700 million yuan in Baotou to invest in the construction of 12000 ton phase II project. So far, the company's 40000 ton / year blank production capacity planning has been fully implemented, and the new projects are targeted at the standard high-end market, and the future growth path is further clarified.
Investment suggestion: the company continues to cultivate high-performance NdFeB magnetic materials. At present, the production capacity planning of 40000 tons has been fully clarified. It is expected that the company's revenue from 2022 to 2024 will be 6.137 billion yuan, 7.996 billion yuan and 10.658 billion yuan respectively, and the net profit attributable to the parent company will be 6.33 billion yuan, 9.13 billion yuan and 1.263 billion yuan, EPS will be 0.76, 1.09 and 1.51 yuan / share, and the corresponding PE will be 39.8, 27.6 and 20.0 times respectively, maintaining the "buy" rating of the company.
Risk tips: risk of price rise of rare earth raw materials; The downstream demand is lower than the expected risk; Risks of major changes in the technical route; Risk of production capacity falling short of expectations
