Beiteri (835185)
Company events: the company released its 2021 annual report: in 2021, the company achieved a revenue of 10.491 billion yuan, a year-on-year increase of 135.67%; The net profit attributable to the parent company was 1.441 billion yuan, a year-on-year increase of 191.39%.
The development of the downstream new energy vehicle industry has brought huge market demand. In 2021, the sales of positive and negative materials reached 3.65 billion yuan (+ 250.36%) and 6.459 billion yuan (+ 104.96%) respectively. Beiteri’s main business includes three business segments: lithium ion battery cathode materials, cathode materials and graphene materials. It is a national high-tech enterprise integrating basic research, product development, production and sales. According to the 2021 annual report released by the company, the company’s revenue scale and profit scale increased significantly year-on-year in 2021, of which the sales volume of cathode materials reached 166200 tons and the sales volume reached 6.459 billion yuan, a year-on-year increase of 104.96%; The sales volume of cathode materials reached 31600 tons, with a sales volume of 3.65 billion yuan, a year-on-year increase of 250.36%. In terms of a single quarter, the revenue of 2021q4 company was 3.640 billion yuan, a year-on-year increase of 107.26% and a month on month increase of 37.68%; The net profit attributable to the parent company was 351 million yuan, with a year-on-year increase of 149.76% and a month on month decrease of 2.53%. The main reason for the growth of the company’s revenue and net profit attributable to the parent company in 2021 is that the demand growth of new energy vehicles this year drives the rapid development of lithium-ion battery and materials industry, the production and sales volume of the company’s products increases, and the revenue and cost also increase accordingly.
The field of negative electrode materials adheres to the business model of vertical industrial chain. In 2021, joint ventures were established in many places to invest in and build integrated production line projects: after more than 20 years of accumulation and development, the company’s negative electrode material business has formed a negative electrode material product system dominated by natural graphite negative electrode materials, artificial graphite negative electrode materials and new negative electrode materials. The natural graphite negative electrode materials and artificial graphite negative electrode materials produced by the company belong to graphite negative electrode materials; The new negative electrode materials produced by the company are mainly silicon-based negative electrode materials represented by silicon oxygen negative electrode materials and silicon carbon negative electrode materials. In addition, they also include a small amount of soft carbon, hard carbon and other new negative electrode materials. In the field of negative electrode materials, the company adheres to the business model of vertical industrial chain. On the one hand, the company will cooperate and invest with partners with technical strength, resource reserves and common values in the upstream and downstream of the industrial chain, continuously improve the layout of the industrial chain, and give full play to the collaborative role of various production bases to ensure supply; On the other hand, it will also accelerate the traditional technical route and process innovation of graphite negative electrode, accelerate the forward-looking layout of new negative electrode materials, achieve a greater breakthrough in negative electrode market share and consolidate the overall competitive advantage of negative electrode materials. From September to November 2021, the company established joint ventures in Ya’an City, Sichuan Province, Shizuishan City, Ningxia Province and Changzhi City, Shanxi Province to invest in the construction of integrated production line of negative electrode materials.
In the field of cathode materials, it focuses on high nickel ternary cathode materials. In 2021, it jointly built Changzhou base with SK on and Eve Energy Co.Ltd(300014) joint venture: in the field of cathode materials, the company has formed a high nickel ternary cathode material product system represented by NCA and ncm811 through continuous research and development. In terms of ternary materials, the company focuses on meeting the needs of high-energy density power batteries of battery enterprises at home and abroad, and focuses on the R & D and production of high nickel ternary cathode materials with low cobalt, high energy density and high cost performance advantages. The company adheres to the resource recycling business model, improves the layout of the industrial chain and creates the core competitiveness of products. It ensures resource guarantee and cost advantage by introducing positive material precursor suppliers, investing in the recycling and dismantling business of lithium batteries, jointly investing and distributing key resources such as nickel and lithium with partners, and cooperating with customers to build factories; At the same time, increase R & D investment, realize lower carbon and more environmentally friendly production processes, and continuously optimize products with technological innovation. In June 2021, Jiangsu beiteri, a subsidiary of the company, signed the joint venture contract and capital increase agreement with SK Innovation Co., Ltd. and Yiwei Asia Co., Ltd., jointly increasing the capital of Changzhou beiteri New Material Technology Co., Ltd., and invested in the construction of the “high nickel ternary cathode material project with an annual output of 50000 tons of lithium batteries”.
Investment suggestion: as a well-known enterprise in the new energy materials industry, beiteri has excellent performance in business performance, product quality, technical strength, capacity construction and so on. According to the 2021 annual equity distribution plan issued by the company, the company will distribute 5 bonus shares for every 10 shares to all shareholders with undistributed profits, and distribute cash dividends of 3.5 yuan (tax included) for every 10 shares. It is expected to distribute 243 million bonus shares and 170 million yuan (tax included) in cash dividends. In the past two years, beiteri has expanded the production capacity of artificial graphite negative electrode materials, and actively built new production lines of silicon-based negative electrode materials and high nickel ternary positive electrode materials, so as to make a forward-looking layout for the development trend of positive and negative materials in the industry in the future. We expect the company’s revenue from 2022 to 2024 to be 17.496 billion yuan, 26.236 billion yuan and 33.401 billion yuan respectively, with growth rates of 66.8%, 50% and 27.3% respectively; The net profit was 2.204 billion yuan, 3.212 billion yuan and 4.123 billion yuan respectively, and the corresponding PE was 23x, 16x and 12x respectively, maintaining the Buy-A investment rating.
Risk tips: price fluctuation risk, industry competition risk, exchange rate change risk and policy risk
