\u3000\u30003 Dongguan Winnerway Industry Zone Ltd(000573) 00057)
Core view
Event: the company released the performance forecast for the first quarter of 2022, and the net profit attributable to the parent company increased by more than 600%. On April 12, the company released the unaudited performance forecast for the first quarter of 2022. In 2022q1, the company announced that the net profit attributable to the parent company was 50-55 million yuan, with a year-on-year increase of 605.69% - 676.26%; The net profit deducted from non parent company was 46.5 million yuan to 51.5 million yuan, with a year-on-year increase of 619.41% - 696.77%. During the reporting period, the company's performance increased significantly, mainly due to the strong demand in the downstream market of aluminum foil. At the same time, the production capacity of Anhui Zhongji "with an annual output of 40000 tons of high-precision electronic aluminum foil" was gradually released, so the profitability of the company's aluminum processing business was significantly improved.
The production capacity of battery aluminum is put into operation, and the long-term production capacity planning is leading in the industry. The company's profitability has been greatly improved, mainly due to the "high-precision electronic aluminum foil phase I" project with an annual output of 40000 tons, which was officially put into operation at the end of 2021. The project adopts "ahenbach" high-precision aluminum foil mill imported from Germany, which can produce the thinnest 4.5 μ M aluminum foil to ensure product quality, leading in the industry. Meanwhile, the company has officially entered the supply chain of Contemporary Amperex Technology Co.Limited(300750) and other high-quality downstream customers. In terms of subsequent layout, the company's battery aluminum foil capacity planning is also in the first camp of the industry. "High precision electronic aluminum foil phase II" has an annual production capacity of 32000 tons, is in the period of stepping up construction, and is expected to be put into operation within the year. At the same time, the company has arranged the production capacity of 80000 tons of battery foil blank and 50000 tons of double zero foil blank, and has disclosed the non-public offering plan of no more than 1.7 billion yuan in January 2022. It plans to invest and build 100000 tons of high-precision electronic foil production capacity again. The power battery benefits from the triple drive of consumer electronics, new energy vehicles and new energy power generation distribution and storage. The demand will maintain high growth for a long time. The company's battery foil capacity planning is abundant, and its profitability is expected to be greatly improved.
Impairment landing, traditional business is expected to improve. The annual gross profit margin of the company's conductive paper packaging business was 3.85 billion yuan and 3.45 billion yuan / 202107%, respectively. In 2021, the company accrued asset and credit impairment losses totaling 80 million yuan.
Investment suggestion: we expect the company to achieve a revenue of RMB 7.071/78.78/10.65 billion and a net profit attributable to the parent company of RMB 263 / 352 / 551 million from 2022 to 2024, corresponding to PE 24.87/18.54/11.85 times, maintaining the "overweight" rating.
Risk warning: the production capacity is less than expected; Aluminum prices fluctuate sharply; Industry competition intensifies.
