\u3000\u3 Shengda Resources Co.Ltd(000603) 659 Shanghai Putailai New Energy Technology Co.Ltd(603659) )
The industrial chain has developed in a coordinated manner, forming three major sectors: negative electrode, membrane material and equipment. The company started with negative electrode materials and quickly grew into a leader in the artificial graphite industry. Then it entered the diaphragm and equipment industry through Dongguan zhuogo and Jiatuo. There is a strong synergy between various business lines to jointly boost the growth of the company.
The leading position of negative electrode is stable, and the integration helps strengthen the cost advantage. We believe that the capital & technology threshold of the negative electrode industry is continuously improving and will continue to compete at both ends around product performance & Integration in the future. The company is a leader in the artificial graphite industry, with a shipment of nearly 100000 tons in 21 years and a corresponding income of 5.1 billion. The company has profound know-how accumulation in the negative electrode process, master the optimization processes such as secondary granulation, coating and doping, and has a solid leading position in the field of high-end negative electrode. In terms of production capacity, the company is expected to form 265000 tons of negative electrode production capacity by the end of 22, supporting 215000 tons of graphitization, and the self supply proportion of graphitization will be increased to more than 80%. It also has a self-developed box furnace, and the cost is expected to be further explored.
Coating & base film accelerated expansion, and equipment orders were full. The company is the leader of coating processing and binding battery Contemporary Amperex Technology Co.Limited(300750) . The company has shipped 2.1 billion Ping in 21 years, with a revenue of 2.2 billion and a gross profit margin of 39%. By the end of the 21st century, the production capacity has reached 4 billion square meters, and the shipment is expected to reach 3.7 billion square meters in 22 years. In the coating field, the company has the layout advantages of equipment self-development and raw material integration (PVDF, nano alumina and other materials), and is expected to further optimize the product quality and cost. The company has more than 3 billion orders in the coater equipment business, and continues to expand new categories. The newly established production capacity in South China is expected to improve the order acquisition capacity. The company’s shareholding of Guangdonghectechnologyholdingco.Ltd(600673) 22 years is expected to benefit from the shortage of PVDF lithium battery products industry and further contribute to the performance increment.
Issue 22-24 equity incentive plan to demonstrate development confidence. The company released the equity incentive plan in March 2022. The net profit of the company in 22-24 years is RMB 2.6 billion, RMB 4.0 billion and RMB 5.4 billion respectively. Based on 21 years, the performance growth rate in 22-24 years is 48.6%, 53.8% and 35%, demonstrating the confidence of the company in development.
Investment advice
The company maintains a leading position in the field of negative electrode, and the share of power battery is expected to be further improved. The business of membrane materials is increased, and the orders for equipment are full. We estimate that the net profit attributable to the parent company from 2022 to 2024 will be 2.97 billion, 4.41 billion and 5.85 billion respectively, corresponding to EPS of 4.28, 6.35 and 8.42, corresponding to PE of 32.6, 22.0 and 16.6 times, giving the company a valuation of 45 times in 22 years, corresponding to the target price of 194.85 yuan. It will be covered for the first time and rated as “overweight”.
Risk
Lower than expected risks in downstream demand, deterioration of industrial competition pattern, lower than expected risks in company capacity construction, lower than expected risks in new customer expansion, lifting of restricted shares and exchange risks.
