\u3000\u3 China Vanke Co.Ltd(000002) 601 Lb Group Co.Ltd(002601) )
Lb Group Co.Ltd(002601) released the annual report of 2021: the annual operating revenue was 20.566 billion yuan, yoy + 45.77%, and the net profit attributable to the parent company was 4.676 billion yuan, yoy + 104.33%.
The sharp rise in the prices of main products and the improvement of capacity utilization have driven the substantial growth of the company’s revenue. In 2021, the market of the company’s main products titanium dioxide and sponge titanium was booming, and the sales price increased significantly year-on-year. At the same time, the utilization rate of the existing titanium dioxide and sponge titanium production capacity was improved, especially the effective release of the company’s titanium dioxide production capacity by chlorination method, driving the growth of the company’s revenue. The company sold 877800 tons of titanium dioxide in the whole year, yoy + 5.46%; Sales of 14000 tons of sponge titanium, yoy + 71.6%.
The whole industrial chain advantage of vertical integration has driven the company’s gross profit margin to increase by 6.58 percentage points to 41.93%, thus driving the significant growth of net profit. The company has a complete industrial chain of “titanium concentrate, titanium rich material, titanium dioxide and sponge titanium”, and has mastered the core technology required for the production of various products. The stable supply of self-produced titanium concentrate, sulfuric acid and other raw materials and synthetic rutile, high titanium slag and other intermediate products ensures the continuous production and product quality of titanium dioxide and sponge titanium, reduces the production cost and drives the increase of the company’s gross profit margin, The gross profit margin of titanium dioxide products increased by 9.03 percentage points to 45.02%, and that of sponge titanium and titanium tetrachloride products increased by 10.53 percentage points to 22.39%.
Titanium dioxide industry leaders enrich product structure, improve product quality and consolidate the dominant position of the industry. The company is one of the few titanium dioxide suppliers with both sulfuric acid process and chlorination process in the titanium dioxide industry. According to the calculation of production capacity, the company is the world’s largest producer of titanium dioxide by sulfuric acid process, the world’s fourth largest producer of titanium dioxide by chlorination process and China’s largest producer of titanium dioxide by chlorination process. The company continues to increase the proportion of chlorinated titanium dioxide, and is accelerating the project of Longbai Lufeng’s annual output of 200000 tons of chlorinated titanium dioxide production line and the annual output of 100000 tons of chlorinated titanium dioxide expansion project of new materials company; And actively plan the follow-up production capacity, rapidly expand the scale, seize the opportunity for the great development of titanium dioxide by chlorination in China, and consolidate the dominant position of the industry. In addition, the company increased R & D investment and developed new high-end products such as high light resistance and super weather resistance, driving the company’s titanium dioxide product system to upgrade to medium and high-end.
Actively arrange the positive and negative materials of new energy batteries and cultivate the second growth curve. Adhering to the development idea of “large chemical industry and low cost”, the company makes use of the advantages of the company’s management, R & D, technology and supply chain to enter the field of new energy batteries by means of new projects, cooperation and acquisition, and develop and produce battery materials such as iron phosphate, lithium iron phosphate and graphite negative electrode. The company acquired 100% equity of Henan China carbon new materials, and made use of the advantages of China carbon new materials in talent and technology to enter the graphite anode industry; The company has planned an annual output of 200000 tons of battery material grade iron phosphate project, an annual output of 200000 tons of lithium-ion battery material industrialization project, an annual output of 100000 tons of artificial graphite cathode material for lithium-ion battery project, an annual output of 200000 tons of lithium-ion battery cathode material integration project, and an annual output of 150000 tons of electronic grade lithium iron phosphate project, including an annual output of 200000 tons of battery material grade iron phosphate project (phase I 50000 tons of iron phosphate) The industrialization project with an annual output of 200000 tons of lithium-ion battery materials (50000 tons of lithium iron phosphate in phase I) and the artificial graphite anode material project with an annual output of 100000 tons of lithium-ion batteries (50000 tons of graphite anode in phase I) have entered the trial production stage or have the conditions for production. Drawing on its own successful experience in titanium dioxide industry, the company runs through the whole industry chain and integration in lithium battery material projects to cultivate the second growth curve.
Profit forecast and investment rating of the company: as the leader of titanium dioxide industry, while expanding and strengthening its main business, the company actively arranges the new energy industry, cultivates the second growth curve, and forms a diversified and coordinated business model. Based on the company’s 2021 annual report, we adjusted the company’s profit forecast from 2022 to 2024 accordingly. We predict that the net profit of the company from 2022 to 2024 will be RMB 5.787 billion, RMB 6.624 billion and RMB 7.593 billion respectively, and the corresponding EPS will be RMB 2.43, RMB 2.78 and RMB 3.19 respectively. The corresponding P / E value of the current stock price will be 10, 8 and 7 times respectively. Maintain a “strongly recommended” rating.
Risk tip: product price decline; The new capacity of the industry is put in too fast; Industry demand fell.
