\u3000\u3 Shengda Resources Co.Ltd(000603) 659 Shanghai Putailai New Energy Technology Co.Ltd(603659) )
Event:
Shanghai Putailai New Energy Technology Co.Ltd(603659) issue the annual report for 2021. In 2021, the company achieved a revenue of 8.996 billion yuan, a year-on-year increase of + 70.4%, and a net profit attributable to the parent company of 1.749 billion yuan, a year-on-year increase of + 161.9%, deducting a net profit not attributable to the parent company of 1.66 billion yuan, a year-on-year increase of + 166.2%. According to the company’s announcement on the performance of 2021, it is estimated that the net profit attributable to the parent company in 2021 will be 1.7 billion yuan – 1.8 billion yuan, deducting a net profit not attributable to the parent company of 1.6 billion yuan – 1.7 billion yuan. The data disclosed in the annual. The company achieved basic earnings per share of 2.53 yuan, a year-on-year increase of + 132.1%. In 2021, Q4 achieved a revenue of 2.701 billion yuan, a year-on-year increase of + 39.7%, a month on month increase of + 13.9%, and a net profit attributable to the parent company of 518 million yuan, a year-on-year increase of + 105.2%, a month on month increase of + 13.5%, with a significant increase in profitability.
Key investment points:
The proportion of graphitization self supply increased, and the business volume of negative electrode increased simultaneously. In 2021, the company’s negative electrode material business achieved a revenue of 5.129 billion yuan, a year-on-year increase of + 41.4%, and a gross profit margin of 29.49%, a year-on-year increase of + 4.18 PCT. Graphitization (including internal sales) achieved a revenue of 1.009 billion yuan, a year-on-year increase of + 24.6%, and a gross profit margin of 34.46%, a year-on-year increase of + 1.31pct. 1) Benefiting from the strong downstream demand and rapid expansion of production, the company’s negative electrode sales volume increased significantly. The annual sales volume was + 0.72 million tons, with a year-on-year increase of + 2.46 million tons, with a full production load of + 0.05%. 2) Benefiting from the rising price of negative electrode and the cost control of self supplied graphitization, the gross profit margin of negative electrode of the company has increased greatly. As graphitization is a high-energy consumption industry, affected by the power restriction policy and the rise of electricity price in the second half of 2021, the supply of graphitization in China is tight and the price continues to rise. With the graphitization technology with low energy consumption and high self supply rate of graphitization, the company has realized the effective control of the raw material cost of cathode business. By the end of 2021, the company has a negative material capacity of 150000 tons and a graphitization capacity of 110000 tons, with a self supply rate of more than 70%. The subsequent planned capacity is Sichuan’s 200000 ton integrated production base, of which the first phase of 100000 ton capacity is expected to be put into operation by the end of 2022. It is expected that the company’s negative electrode capacity will be 250000 tons in 2023, the graphitization capacity will be 210000 tons, and the self supply proportion of graphitization will reach 84%. Due to the long graphitization production cycle, it is expected that the supply shortage of graphitization in China will continue in 2022.
The expansion of diaphragm production was accelerated, the layout of coating materials, and new breakthroughs were made in lithium battery equipment. In 2021, the company’s diaphragm business had a revenue of 2.195 billion yuan, a year-on-year increase of + 171%, accounting for 24.5% of the total revenue, a gross profit margin of 39.85%, and a sales volume of 2.171 billion square meters. The wet diaphragm accounted for 35.19% of the Chinese market, a year-on-year increase of + 8.51 PCT, and the market share increased significantly. By the end of 2021, the company has a base film capacity of 100 million square meters and a coating capacity of 4 billion square meters. Liyang 5 micron diaphragm is expected to be delivered in batches to overseas users this year. The company’s planned capacity under construction includes 1.5 billion square meters diaphragm coating project in Jiangsu phase II, 2 billion square meters diaphragm coating project in Guangdong and 400 million square meters base film coating integration project in Sichuan. The total existing and planned capacity of base film and coating is 5 / 7.9 billion square meters. The diaphragm business of the company benefits from the advantages of product technology, cost and production efficiency of localization of coating materials, and is in a leading position in the industry. In terms of coating materials, the company’s PVDF business revenue in 2021 was 447 million yuan, with a gross profit margin of 28.24%, with a production capacity of 5000 tons and a production capacity of 8000 tons of alumina and boehmite. The company’s lithium battery equipment achieved a revenue of 1.368 billion yuan, a year-on-year increase of + 109.24% and a gross profit margin of 26.53%. Lithium battery equipment has been fully recognized by downstream customers, including more than 4 billion yuan of orders for coating machines (excluding internal orders), more than 110 million yuan of orders for automatic assembly lines, and batch orders for liquid injection machines, laminating machines, winding machines, helium inspection machines and other equipment.
Profit forecast and investment rating: benefiting from the improvement of the company’s negative pole integration and the rapid growth of multi business line capacity, it is estimated that the company’s operating revenue from 2022 to 2024 will be 14.94 billion yuan, 22.71 billion yuan and 29.19 billion yuan, and the net profit attributable to the parent company will be 2.89 billion yuan, 4.39 billion yuan and 5.56 billion yuan. The current share price corresponds to PE of 34x, 23x and 18x, which is the first rating and is rated as “buy”.
Risk tips: the sales volume of new energy vehicles is lower than expected, the downstream demand is lower than expected, the speed of production expansion is lower than expected, the industry competition is intensified, the cost of electricity is rising sharply, etc.
