\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 48 Jl Mag Rare-Earth Co.Ltd(300748) )
Event: the company released its 2021 annual report. In 2021, the operating revenue was 4.080 billion yuan, a year-on-year increase of 68.78%, of which 2021q4 operating revenue was 1.162 billion yuan, a year-on-year increase of 45% and a month on month increase of 5%. In 2021, the net profit attributable to the parent company was 453 million yuan, with a year-on-year increase of 85.32%, of which the net profit attributable to the parent company in 2021q4 was 102 million yuan, with a year-on-year increase of 12% and a month on month increase of - 22%. In 2021, the net profit not attributable to the parent company was RMB 423 million, with a year-on-year increase of 86.37%, of which the net profit not attributable to the parent company was RMB 93 million in 2021q4, with a year-on-year increase of 9.41% and a month on month decrease of - 25.6%.
The revenue growth in the field of new energy vehicles and auto parts is considerable, and the revenue in the field of wind power is basically stable. In 2021, the business income of NdFeB magnetic steel was 3.767 billion yuan, a year-on-year increase of + 64.58%, accounting for 92.32% of the total revenue; The gross profit margin was 21.32%, contributing a gross profit of 803 million yuan, a year-on-year increase of 248 million yuan, accounting for 87.76%. The company's products are widely used in new energy vehicles and auto parts, energy-saving frequency conversion air conditioning, wind power generation, 3C, industrial energy-saving motors and other fields. In 2021, the company's revenue in the field of new energy vehicles and auto parts reached 1.051 billion yuan, with a year-on-year increase of 222.73%, accounting for 28.46% of the revenue of magnetic materials, with a year-on-year increase of 13.94 PCT; The revenue of energy-saving variable frequency air conditioning reached 1.4 billion yuan, with a year-on-year increase of 59.41%, accounting for 37.9% of the revenue of magnetic materials, with a year-on-year decrease of 1.25 PCT; The revenue of wind power generation reached 887 million yuan, basically the same as last year, accounting for 24.02% of the revenue of magnetic materials, with a year-on-year decrease of 15.17 PCT.
Production and marketing continued in large quantities, and the price of high-performance NdFeB magnetic materials increased significantly. (1) Production and marketing: in 2021, the finished product output of NdFeB magnetic steel was 10300 tons, with a year-on-year increase of + 7.41%; The sales volume was 10700 tons, with a year-on-year increase of + 21.44%; There are still 399 tons in stock in 2021. (2) Price: the price of high-performance NdFeB magnetic materials per ton is 351800 yuan / ton, an increase of 35.5% year-on-year. (3) In terms of single ton cost: the single ton cost of high-performance Nd-Fe-B magnetic materials was 276700 yuan / ton, a year-on-year increase of + 80100 yuan / ton; Among them, the cost of single ton of raw materials was 233400 yuan / ton, a year-on-year increase of + 73000 yuan / ton; Direct labor: 17100 yuan / ton, year-on-year + 2000 yuan / ton; The manufacturing cost is 15000 yuan / ton, a year-on-year increase of + 3000 yuan / ton.
Actively expand production capacity and have a good rhythm in the future. The company's annual production capacity of high-performance NdFeB permanent magnet blank increased from 7000 tons in 2018 to 15000 tons in 2021, with a compound annual growth rate of 28.92%, and the production capacity utilization rate in recent four years was more than 95%. The 8000 ton capacity of Baotou high performance rare earth permanent magnet material base project is expected to reach the production capacity in Q2 of 2022, and the annual capacity will increase to 23000 tons. At the same time, the company is constantly optimizing the production capacity layout, building Ningbo base and expanding the phase II project of Baotou base. According to the announcement, the company plans to build a high-performance Nd-Fe-B permanent magnet blank production capacity of 40000 tons / year by 2025.
R & D investment continues to increase, and grain boundary penetration technology is leading in the industry. In 2021, the company's R & D expenditure was 160 million yuan, a year-on-year increase of 55.23%, accounting for 3.93% of operating revenue. The production technology threshold of high-performance NdFeB permanent magnet is high. The company has mastered the independent core technology and patent system with grain boundary penetration technology as the core, so as to maintain the high performance of magnetic products while greatly reducing the consumption of medium and heavy rare earths. According to frost Sullivan's report, the company used grain boundary infiltration technology to produce 4111 tons of high-performance rare earth permanent magnet products in 2020, ranking first in the world in the crystal boundary infiltration rare earth permanent magnet market, accounting for about 21.3% of the market share. In 2021, the company used grain boundary infiltration technology to produce 6064 tons of high-performance rare earth permanent magnet products, with a year-on-year increase of 47.51%, accounting for 58.73% of the company's total product output in the same period, an increase of 16 percentage points over the same period of last year.
Investment suggestion: we estimate that the company's operating revenue from 2022 to 2024 will be 6.879 billion yuan, 8.256 billion yuan and 9.387 billion yuan respectively, and the net profit will be 704 million yuan, 858 million yuan and 1.011 billion yuan respectively, with the corresponding EPS of 0.84 yuan, 1.03 yuan and 1.21 yuan / share respectively. At present, the corresponding PE share price is 37.9, 31.1 and 26.4 times. For the first time, it is rated as "overweight-a", with a 6-month target price of 37 yuan / share.
Risk warning: the demand is less than expected, the project progress is less than expected, and the price of raw materials fluctuates sharply
