\u3000\u3 China Vanke Co.Ltd(000002) 601 Lb Group Co.Ltd(002601) )
Core conclusion
Event: 1) the company achieved an operating revenue of 20.566 billion yuan in 2021, a year-on-year increase of + 45.77%; The net profit attributable to the parent company was 4.676 billion yuan, a year-on-year increase of + 104.33%; The net profit attributable to the parent company after deduction was 4.614 billion yuan, a year-on-year increase of + 83.97%. Among them, Q4 achieved a revenue of 5.297 billion yuan, a year-on-year increase of + 25.83%; The net profit attributable to the parent company was 846 million yuan, a year-on-year increase of + 149.48%, and the performance was in line with market expectations. 2) The company and Henan yukuang Kaiyuan Mining Co., Ltd. plan to jointly establish a joint venture in Tanzania to cooperate on a hard rock lithium exploration right of an overseas subsidiary of Kaiyuan mining in Dodoma Province, Tanzania. The company invested 6 million yuan in cash and held 60% equity of the joint venture.
In 2021, the volume and price of titanium dioxide of the company increased simultaneously, and the proportion of titanium dioxide by chlorination continued to increase. The company produced 902200 tons of titanium dioxide in the whole year, with a year-on-year increase of 10.41%; A total of 877800 tons of titanium dioxide were sold, with a year-on-year increase of 5.46%. Among them, the company sold 621200 tons of sulfuric acid titanium dioxide, a year-on-year decrease of 2.75%, and 256600 tons of chlorinated titanium dioxide, a year-on-year increase of 32.52%. The company continues to increase the proportion of titanium dioxide produced by chlorination, and its products are upgraded to medium and high-end. In terms of price, the unit price of titanium dioxide products of the company was 17315 yuan / ton in 2021, with a year-on-year increase of 31.6%, and the price center increased significantly.
The construction of the company’s new energy projects has been continuously promoted, and the lithium-ion battery materials have developed the second growth curve. During the reporting period, the company announced that it plans to invest 600 million yuan to build a 7 million ton green and efficient beneficiation project, which is expected to be completed in March 2023, which will improve the company’s raw ore processing capacity to 22 million tons / year, 5 million tons / year of iron concentrate and 1.2 million tons / year of titanium concentrate. At the same time, continue to promote the production capacity construction of iron phosphate, lithium iron phosphate and graphite negative electrode. Starting from the titanium dioxide business, the company extends to the upstream and downstream of the industrial chain, steadily advances the construction of new energy projects, and further binds the upstream raw materials. While maintaining the cost advantage, it will open the second growth curve of the company except the main industry of titanium dioxide.
Investment suggestion: considering the business continuity of titanium dioxide and the growth brought by a large number of proposed projects, we expect the company to realize the net profit attributable to the parent company of 5.764/63.06/6.845 billion yuan from 2022 to 2024, with a year-on-year increase of + 23.3% / + 9.4% / + 8.6%, EPS of 2.42/2.65/2.87 yuan respectively, and the corresponding PE of 9.7x/8.9x/8.2x respectively, maintaining the “buy” rating.
Risk tip: the progress of the new project is lower than expected, and the product price is lower than expected.
