\u3000\u3 China Vanke Co.Ltd(000002) 601 Lb Group Co.Ltd(002601) )
Event description
On April 13, the company released its annual report for 2021. In 2021, the company achieved an operating revenue of 20.566 billion yuan, a year-on-year increase of 45.77%; The total profit was 5.519 billion yuan, a year-on-year increase of 95.70%; The net profit attributable to shareholders of listed companies was 4.676 billion yuan, a year-on-year increase of 104.33%.
The performance has doubled, and the high view of titanium dioxide continues.
The performance of the company doubled in 2021, with the net profit attributable to the parent company reaching 4.676 billion yuan, a year-on-year increase of 104.33%, and the net profit attributable to the parent company after deducting non profits was 4.614 billion yuan, a year-on-year increase of 83.97%. Among them, Q4 realized a net profit attributable to the parent company of 846 million yuan, a year-on-year increase of 149.48%. The company’s performance hit a record high, mainly because the prosperity of titanium dioxide continued to rise, and the company’s titanium dioxide products continued the double rising trend of volume and price. The price of titanium dioxide has continued to rise since 2021. The average price of titanium dioxide in 2021 was 19156 yuan / ton, up 37.33% year-on-year. The average price of 2021q4 titanium dioxide was 19851 yuan / ton, up 34.34% year-on-year and 1.47% month on month. At the same time, the production and marketing of titanium dioxide market are booming. Focusing on the goal of “double 90” of titanium dioxide production and marketing, the company grasps the market and improves the utilization rate of titanium dioxide production capacity, especially the effective release of chlorination production capacity. Although the price of raw and auxiliary materials has increased significantly, the competitive advantage of the company’s vertically integrated whole industrial chain has been fully revealed, and the company’s net profit has increased significantly year-on-year. In 2021, the company produced 902200 tons of titanium dioxide, with a year-on-year increase of 10.41%, including 646100 tons of titanium dioxide produced by sulfuric acid method, with a year-on-year increase of 6.86%, and 256200 tons of titanium dioxide produced by chlorination method, with a year-on-year increase of 20.52%; A total of 877800 tons of titanium dioxide were sold, with a year-on-year increase of 5.46%. Among them, China’s sales accounted for 51%, international sales accounted for 49%, 621200 tons of titanium dioxide by sulfuric acid method, with a year-on-year decrease of 2.75%, and 256600 tons of titanium dioxide by chlorination method, with a year-on-year increase of 32.52%.
Expand the production capacity of titanium dioxide by chlorination and consolidate the leading position of titanium dioxide.
As the only industry leader in China who has mastered the whole process of titanium dioxide production by large-scale sulfuric acid method and boiling chlorination method at the same time, the company continues to expand the production capacity of titanium dioxide by chlorination method. On the basis of the innovative project of upgrading and transforming 500000 tons of Panxi titanium concentrate into titanium chloride slag, the company invested in the new demonstration project of comprehensive recovery of 200000 tons of titanium chloride dioxide, vanadium scandium and other rare metals. At the same time, the supporting project of 1 million tons / year advanced treatment of high salt wastewater was constructed to realize the comprehensive utilization of Panzhihua vanadium titanium magnetite, continue to expand the technical advantages of titanium dioxide by chlorination and improve the market competitiveness. According to the announcement, the 200000 ton titanium chloride dioxide, vanadium scandium and other rare metals comprehensive recovery demonstration project (supporting the 1 million ton high salt wastewater treatment project) has an annual output of 200000 tons of high-grade titanium chloride dioxide, 43000 tons of hydrochloric acid, 100000 tons of caustic soda, 400 tons of vanadium pentoxide and 20 tons of scandium oxide. The total investment of the project is 3.5 billion yuan and the construction period is 4 years and 6 months. At present, the project has been put on record in the development and Reform Bureau of Yanbian county. The company’s capacity expansion of chlorinated titanium dioxide is expected to consolidate the company’s first mover advantage in China’s Chlorinated titanium dioxide industry, optimize product structure, enhance market competitiveness and improve market share. It will become a new profit growth point of the company in the future.
Accelerate the layout of new energy materials and cultivate the second growth curve.
The company accelerated the layout of the field of new energy materials and created a two round development model of “titanium dioxide + new energy”. At present, the company has planned five projects in the field of new energy materials, including (1) iron phosphate project with an annual output of 200000 tons, with a total investment of 1.2 billion yuan, which is constructed in three phases. 1、 50000 ton production lines will be built in phase II and 100000 ton production lines will be built in phase III. at present, phase I is ready for production;
(2) the project of artificial graphite anode material for lithium ion battery with an annual output of 100000 tons, with a total investment of 1.5 billion yuan, is constructed in two phases. 25000 ton production line will be built in phase I and 75000 ton production line will be built in phase II. At present, phase I is ready for production; (3) The lithium iron phosphate project with an annual output of 200000 tons, with a total investment of 2 billion yuan, is constructed in three phases. 1、 50000 ton production lines will be built in phase II and 100000 ton production lines will be built in phase III. at present, phase I has entered the trial production stage; (4) The integrated project of cathode materials for lithium ion batteries with an annual output of 200000 tons, with a total investment of 3.5 billion yuan, is constructed in three phases. Phase I and phase II will respectively build a production line of graphite cathode materials for lithium-ion batteries with an annual output of 50000 tons, and phase III will build a production line of graphite cathode materials for lithium-ion batteries with an annual output of 100000 tons. (5) The project with an annual output of 150000 tons of electronic grade lithium iron phosphate has a total investment of 2 billion yuan.
The company accelerates the layout of new energy materials, expands battery materials such as iron phosphate, lithium iron phosphate and artificial graphite anode, and continues to expand the production capacity of titanium dioxide by chlorination while consolidating the advantages of titanium industry. In the future, it is expected to form a two round development model of “titanium dioxide + new energy”, realize the transformation from comprehensive utilization of resources to production of new materials, continue to extend to the downstream and build an integrated advantage.
Industrial chain integration has obvious advantages, and build a benchmark enterprise of “large chemical industry and low cost”
The company has built a complete titanium industry chain of “titanium concentrate – titanium chloride slag – titanium dioxide by chlorination – sponge titanium – titanium alloy”, with a production capacity of 1.01 million tons / year, which will fully benefit from this round of titanium dioxide business cycle and realize the advantages of scale and integration. In addition, the company has obvious advantages in the whole industrial chain of chlorination process, technological improvement and localization. The competitive advantages of high quality and low cost brought by the supporting of raw titanium ore, scale effect and circular economy effect of the company have gradually emerged. At the same time, the chlorination process has significant advantages in energy conservation and environmental protection. In the long run, it meets the national policy requirements of “carbon peak” and “carbon neutralization”. The company has planned a total production capacity of 300000 tons of titanium dioxide by chlorination, further adjusted the company’s product structure, increased the proportion of the company’s titanium dioxide products in high-end fields, increased the market share, optimized resource allocation, enhanced the company’s sustainable development ability, increased the industrial layout of new energy source cathode materials and cathode materials, and adhered to the two goals of “large chemical industry” and “low cost” in industrialization, Build a benchmark enterprise of circular economy.
Investment advice
It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 5.685 billion yuan, 6.874 billion yuan and 7.577 billion yuan respectively, with a year-on-year growth rate of 21.6%, 20.9% and 10.2%. The corresponding PE is 10, 8 and 7 times respectively. Maintain the “buy” rating.
Risk tips
(1) various risks caused by price fluctuations of raw materials and main products;
(2) safety production risk;
(3) environmental protection risks;
(4) the production progress of the project is less than expected
