\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 90 Suzhou Ta&A Ultra Clean Technology Co.Ltd(300390) )
The business income was 3.398 billion yuan, a year-on-year increase of 158.73%, and the net profit attributable to the parent company was 911 million yuan, a year-on-year increase of 218.44%. The company’s lithium battery materials business achieved a revenue of 2.315 billion yuan, making a breakthrough from scratch. In 2022q1, the net profit attributable to the parent company is expected to be 1.45-1.6 billion yuan, with a synchronous increase of 892% – 995%, mainly due to the high prosperity of lithium salt industry and the production of phase II capacity of the company. In 2025, the company’s equity capacity will be 145000 tons of lithium hydroxide and 10000 tons of lithium carbonate, creating a global leader in lithium salt. In 2018, the company and Contemporary Amperex Technology Co.Limited(300750) and other enterprises jointly established Tianyi lithium industry. The phase I 20000 ton battery grade lithium hydroxide project was put into operation in December 2020 and the phase II 25000 ton battery grade lithium hydroxide project was put into operation in December 2021. At the same time, the company continues to build 50000 ton and 60000 ton lithium hydroxide production lines in Jiang’an County, Yibin City and Ganmei Industrial Park, Meishan City. In January 2022, the company and Contemporary Amperex Technology Co.Limited(300750) proposed to establish a joint venture subsidiary to invest in the 100000 ton lithium carbonate smelting project, with the company holding 10%. It is estimated that by 2025, the company’s equity capacity is expected to be 145000 tons of lithium hydroxide and 10000 tons of lithium carbonate.
The company’s lithium concentrate incoming material guarantee will be increased to 9801010000 tons, basically covering the planned capacity of 160000 tons of lithium hydroxide. (1) In September 2021, Suzhou Tianhua times, controlled by Suzhou Ta&A Ultra Clean Technology Co.Ltd(300390) actual controller Pei Zhenhua, acquired 24% equity of Manono project for us $240 million. The future planned production capacity of Manono mine is 1.6 million tons. At that time, the company will obtain the underwriting right of 800000 tons. (2) In March 2021, Tianyi lithium signed the supplementary agreement on lithium concentrate sales with Pilbara company in Australia, and the package sales volume increased to 115000 tons from 2022 to 2024. In addition, the agreement can be extended for five years. (3) In October 2020, Tianyi lithium signed a long-term agreement on spodumene concentrate with Brazil AMG mining company. AMG sold 6 Shenzhen Tagen Group Co.Ltd(000090) 000 tons of spodumene concentrate to Tianyi lithium from 2021 to 2023. In January 2021, the company underwritten all the new capacity (at least 200000 tons) of AMG in the next five years, and the agreement can be extended for another five years. The total lithium concentrate package sales volume of the company is 9801010000 tons, basically covering the planned lithium salt production capacity.
Give “overweight” investment rating. In the next three years, the lithium salt production capacity of the company will be put into operation rapidly, and the development will enter the fast lane. It is estimated that the revenue from 2022 to 2024 will be 12.43/173.0/23.22 billion yuan, the net profit attributable to the parent company will be 3.68/54.2/54.5 billion yuan, the corresponding EPS will be 6.31/9.30/9.36 yuan, and the corresponding PE will be 11.1/7.5/7.5 times. Compared with the current valuation of lithium salt enterprises, the valuation is 10 times that of 2023, and the corresponding share price is 93 yuan / share. It is covered for the first time and rated as “overweight”.
Risk tip: under the fluctuation of lithium price, the demand for new energy in youyou is less than expected, and the construction progress of Manono project is less than expected.
