\u3000\u30 Jinzai Food Group Co.Ltd(003000) 37 Shenzhen Capchem Technology.Ltd(300037) )
Event:
Shenzhen Capchem Technology.Ltd(300037) issue the annual report for 2021. In 2021, the company achieved a revenue of RMB 6.951 billion, a year-on-year increase of + 134.76%, a net profit attributable to the parent company of RMB 1.307 billion, a year-on-year increase of + 152.36%, a deduction of non attributable net profit of RMB 1.233 billion, a year-on-year increase of + 156.17%, and a basic earnings per share of RMB 3.18, a year-on-year increase of + 146.51%. The company’s Q4 revenue in 2021 was 2.482 billion yuan, a year-on-year increase of + 159.81%, a month on month increase of + 29.81%, and the net profit attributable to the parent company was 439 million yuan, a year-on-year increase of + 204.72%, a month on month increase of + 1.79%.
Key investment points:
Electrolyte volume rose sharply, contributing to the growth of main performance. (1) The business of battery chemicals achieved an operating revenue of 5.270 billion yuan, a year-on-year increase of + 217.63%, accounting for 75.81% of the annual operating revenue. It is the core business of the company, with a gross profit margin of 31.63%, a year-on-year increase of + 5.87pct, an output of 117000 tons and a capacity utilization rate of 89.83%. By the end of 2021, the existing capacity is 130500 tons and the capacity under construction is 120000 tons. Revenue growth was driven by the demand for downstream lithium batteries and the rise in electrolyte prices, while driving the increase in gross profit margin. (2) The capacitive chemicals business achieved a revenue of 712 million yuan, a year-on-year increase of + 32.49%, a gross profit margin of 38.54%, a year-on-year increase of -0.04 PCT, an output of 32000 tons, a current capacity of 38400 tons and a capacity utilization rate of 83.41%. The growth of revenue was mainly driven by the accelerated localization and substitution of electronic components in China and the strong demand of capacitor market in China. (3) The business of organic fluorine chemicals achieved a revenue of 693 million yuan, a year-on-year increase of + 23.36% and a gross profit margin of 63.93%. Affected by the price rise of raw materials, the year-on-year increase of -2.89 PCT, the output of 3486 tons and the capacity utilization rate of 85.40%. The current capacity is 4100 tons and 22000 tons are under construction. The product has high technical barriers, so the gross profit is high. Localization substitution drives the downstream demand. (4) The semiconductor chemical business achieved a revenue of 214 million yuan, a year-on-year increase of + 36.39%, a gross profit margin of 28.69%, a year-on-year increase of + 4.75pct, an output of 29500 tons, a capacity utilization rate of 64.59%, a current capacity of 45700 tons and 30000 tons under construction. Revenue growth was mainly driven by strong demand for chips and accelerated localization substitution.
Capacity expansion supports the continuation of high growth. According to the company’s announcement, 1) projects under construction include: Fubang 2400 ton lisfi project, which is expected to be put into operation in the first half of 2022; The 50000 ton battery chemical project in Poland is expected to be put into operation in the second quarter of 2022; Haidefu 15000 ton fluorine material project is expected to be commissioned and put into trial production by the end of 2022; Tianjin Shenzhen Capchem Technology.Ltd(300037) 50000 tons of battery chemicals and 90000 tons of semiconductor chemicals project, which is expected to be put into operation in 2022; Haisifu 15900 tons of fluorine chemicals and 30000 tons of battery chemicals are expected to be put into operation in 2022; Huizhou phase 3.5 project of 100000 tons of carbonate and 50000 tons of ethylene glycol is expected to be gradually put into operation in 2023. 2) The planned projects include: the Zhuhai project plans to invest 1.2 billion yuan to build a production line of 105000 tons of lithium battery materials, 130000 tons of semiconductor chemicals and 11000 tons of capacitor chemicals; Chongqing project plans to invest 784 million yuan to build 200000 tons of electrolyte materials and 80000 tons of semiconductor chemicals production line; The Dutch project plans to invest 1.5 billion yuan to build a production capacity of 50000 tons of electrolyte and 100000 tons of carbonate.
Profit forecast and investment rating: it is estimated that the operating revenue of the company from 2022 to 2024 will be 10.26 billion yuan, 12.36 billion yuan and 14.6 billion yuan, and the net profit attributable to the parent company will be 1.956 billion yuan, 2.475 billion yuan and 3.074 billion yuan. The corresponding PE of the current stock price is 18x, 14x and 12x, which is the first rating and will be rated as “buy”.
Lower than expected speed of production capacity expansion, lower than expected price fluctuation of new energy industry and other risks.
