\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 48 Jl Mag Rare-Earth Co.Ltd(300748) )
Event: Jl Mag Rare-Earth Co.Ltd(300748) disclosed the annual report of 2021. In 2021, the company realized an operating revenue of 4.080 billion yuan, an increase of 68.78% year-on-year; The net profit attributable to the shareholders of the listed company was 453 million yuan, a year-on-year increase of 85.32%. Among them, the revenue of 21q4 was 1.162 billion yuan, with a year-on-year increase of 44.69% and a month on month increase of 4.74%; The net profit attributable to the parent company was 102 million yuan, with a year-on-year increase of 10.70% and a month on month decrease of 22.46%; In 2021q4, the non net profit deducted was 93 million yuan, with a year-on-year increase of 9.82%. The company’s performance is in line with expectations.
The simultaneous rise of volume and price helped the company’s performance increase. 1) Volume: in 21 years, the sales volume of neodymium iron boron magnetic steel finished products of the company was 1070854 tons, with a year-on-year increase of 21.44%, of which 6064 tons of high-performance magnetic materials were produced by crystal penetration technology, with a year-on-year increase of 47.51%, accounting for 58.73% of the total output of the company’s products in the same period, an increase of 16 percentage points over the same period of last year; 2) Price: the improvement of product structure and the rise of rare earth price, and the price of finished magnetic materials has changed from 260000 yuan / ton in 20 years to 350000 yuan / ton (YoY + 36%); 3) Profit per ton: the gross profit rate decreased slightly. The gross profit rate of magnetic materials decreased from 23.81% to 21.32%, a year-on-year decrease of 2.49 PCTs, but the gross profit per ton increased from 61800 yuan / ton to 75000 yuan / ton, a year-on-year increase of 21.33%. The downstream continues to have a high boom. In the future, with the further release of the company’s production capacity, the performance is expected to be further improved.
The layout of new energy sources has been steadily carried out, and the product structure has been further optimized. In the field of new energy vehicles and auto parts, the company achieved revenue of 1.051 billion yuan (YoY + 222.73%) in 21 years, accounting for 13.48% → 25.76%, an increase of 12.28 PCTs year-on-year; In the field of energy-saving variable frequency air conditioning, the company’s revenue in the field of variable frequency air conditioning was 1.4 billion yuan (YoY + 59.41%), accounting for 34.31%, a year-on-year decrease of 2.02 PCTs; The revenue of wind power generation reached 887 million yuan, basically the same as last year, accounting for 36.37% → 21.74%, a year-on-year decrease of 14.63 PCTs. The company’s revenue in the field of new energy and energy conservation accounts for more than 80%. In addition, the company has also actively arranged energy-saving elevators, industrial energy-saving motors, rail transit and 3C, and the product structure has been continuously optimized. It is worth looking forward to that the company has achieved large-scale mass production in the 3C field and is expected to become a new performance growth point in the future.
The ability of expense control was significantly improved, and the growth rate of net profit was higher than that of revenue. In 2021, the company’s expense rate was 10.09%, with a year-on-year decrease of 2.03%. All subdivided expense rates decreased to varying degrees. Among them, the R & D expense ratio was 3.93%, a year-on-year decrease of 0.34 PCTs; The sales expense ratio was 0.61%, with a year-on-year decrease of 0.10 PCTs; The rate of administrative expenses was 3.56%, a year-on-year decrease of 0.38 PCTs; The financial rate was 2.00%, down 1.20 PCTs year-on-year.
Capacity expansion accelerated, with a planned capacity of 40000 tons in 25 years. With the completion of Baotou phase I project, the company’s magnetic material blank production capacity has increased from 15000 to 23000 tons, and entered the production capacity release period in 22 years. The company has started the construction of 12000 tons of magnetic material production capacity in Baotou phase II. Ningbo 3000 tons of magnetic material and Ganzhou high efficiency motor project are under construction. The total planned production capacity of the company is expected to reach 40000 tons by 2025, with a CAGR of 27.79% in 21-25 years.
Profit forecast and investment suggestions: considering that the product price adjustment and capacity expansion speed are faster than expected, we raised the blank output of Nd-Fe-B magnetic materials in 2022 / 2023 / 2024 to 20000 / 25000 / 30000 tons respectively, and the net profit of the company in 2022 / 2023 / 2024 was 797 million yuan, 1033 million yuan and 1257 million yuan respectively (the value before the net profit forecast in 20222023 was 699 million yuan and 862 million yuan). The market value of the company is “21.3 billion yuan” as of February 20204, and the corresponding market value of the company is “21.3 billion yuan” as of February 20204, respectively.
Risk warning events: price fluctuation of main products, raw material cost fluctuation, industrial policy change, project progress is less than expected, demand calculation deviation, and the risk of lag in the use of public information in the research report.
