\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 48 Jl Mag Rare-Earth Co.Ltd(300748) )
Core conclusion
Event: the company released its 2021 annual report. In 2021, the company realized an operating revenue of 4.080 billion yuan, yoy + 68.78%, and a net profit attributable to the parent company of 453 million yuan, yoy + 85.32%. Among them, the revenue in the fourth quarter was 1.162 billion yuan, yoy + 45.04%, with a month on month increase of 4.74%; The net profit attributable to the parent company was 102 million yuan, yoy + 10.70%, down 22.76% month on month, mainly due to the financial expense rate of 4.46% in the fourth quarter, up 4.54 PCT month on month.
The new energy vehicle business has increased its performance, and the growth space of downstream demand continues to expand. The company's new energy vehicle motor magnet steel has sufficient orders in hand and has entered the supply chain of top motor manufacturers such as Tesla and electric power production. The downstream demand is coordinated with effective supply. In 2021, the company's revenue in this field increased by 220% year-on-year. We estimate that the annual sales volume of magnetic steel for new energy vehicles in 2021 is about 2300 tons, and the selling price is about 450000 yuan / ton. The high-performance Nd-Fe-B industry for new energy vehicles continues to boom. We estimate that the consumption of high-performance Nd-Fe-B for Shanxi Guoxin Energy Corporation Limited(600617) vehicles CAGR is 38.28% from 2021 to 2026.
Continue to reduce costs and expand production, and the gross profit of products is expected to increase. The average price of upstream raw material light rare earth praseodymium neodymium oxide was yoy + 91.87% in 2021. The gross profit margin of the company's magnetic steel products in 2021 was 21.32%, a year-on-year decrease of 2.49pct. 1) The company holds the grain boundary infiltration technology. In 2021, the product of grain boundary infiltration technology was 6000 tons. The price of medium and heavy rare earths in the upstream is at a high level, and the cost control ability of the company is stronger than that of the same industry. 2) The average sales unit price of finished magnetic steel products of the company increased from 254300 yuan / ton in 2021 to 340000 yuan / ton, yoy + 33.69%. The price adjustment mechanism of the company effectively reduced the pressure of raw material price rise. 3) The company has announced two new capacity expansion projects. The blank capacity will reach 23000 tons per year in 2022, and the high-performance Nd-Fe-B permanent magnet material will be built in 2025, with an annual capacity of 40000 tons, ranking in the forefront of the industry. Investment suggestion: it is estimated that the operating revenue from 2022 to 2024 will be 6.135/8.163/10.578 billion yuan, with a year-on-year increase of 50.4% / 33.1% / 29.6%. Considering the continuous improvement of the company's main business structure and the gradual reduction of upstream raw material cost pressure, maintain the "buy" rating.
Risk warning: the downstream market is less than expected, the release of new production capacity is lower than expected, and the price of raw materials fluctuates
