\u3000\u3 Shengda Resources Co.Ltd(000603) 659 Shanghai Putailai New Energy Technology Co.Ltd(603659) )
The company released the first quarterly report of 2022, and the profit of 2022q1 increased by 90.28% year-on-year. The advantages of the company’s integrated layout have been gradually reflected, and a number of businesses have developed in synergy, improving profitability; Maintain the overweight rating.
Key points supporting rating
The profit of the first quarterly report increased by 90.28% year-on-year, which is in line with the expectation: the company released the first quarterly report of 2022, realizing an operating revenue of 3.131 billion yuan, a year-on-year increase of 80.00%; The net profit attributable to the shareholders of the listed company was 637 million yuan, a year-on-year increase of 90.28%; The net profit after deducting non recurring profits and losses was 613 million yuan, a year-on-year increase of 96.00%. The company’s first quarter results met expectations.
The profitability was further enhanced and the operating cash flow flowed out slightly: through the high graphitization self supply rate, coating processing production efficiency and comprehensive material utilization rate, the large-scale effect gradually appeared and the profitability was further enhanced. 2022q1 gross profit margin was 38.73%, up 0.96 percentage points year-on-year and 3.71 percentage points month on month; The net interest rate was 21.98%, up 2.71 percentage points year-on-year and 1.95 percentage points month on month. The net outflow of operating cash flow was 138 million yuan, mainly due to the increase of prepayments by the company to ensure outsourcing capacity.
The negative electrode capacity continues to expand and the integrated layout is gradually improved: considering the production capacity launch progress, we expect that the negative electrode material shipment of 2022q1 company is basically the same as that of 2021q4 month on month. Thanks to the rising price center of negative electrode materials and the high graphitization self supply rate, the profitability of negative electrode materials of the company is slightly improved. By the end of 2021, the company’s negative electrode material production capacity has reached more than 150000 tons. With the gradual release of 60000 tons of pre process production capacity in Jiangxi, 50000 tons of graphitization in Inner Mongolia and 200000 tons of integrated production capacity in Sichuan, the company’s negative electrode material integrated layout will be further improved and continue to show a pattern of booming production and marketing.
The diaphragm business is developing rapidly and the lithium battery equipment business is in hand with full orders: we expect the diaphragm shipment of 2022q1 company to be about 800 million square meters, with a slight increase compared with 2021q4. In the future, the company will increase R & D investment, actively expand production capacity and form a sustainable leading advantage. The capacity expansion of downstream battery plants has accelerated. At present, the company’s lithium battery equipment business is in hand with full orders, laying a solid foundation for future performance growth.
Valuation
Under the current share capital, combined with the company’s announcement and industry conditions, we predict that the earnings per share in 20222024 will be 4.07/5.87/7.57 yuan, corresponding to 33.2/23.0/17.8 times of P / E; Maintain the overweight rating.
Main risks of rating
Price competition exceeds expectations; The demand for new energy vehicles does not meet expectations; The release of new capacity is not as expected; New product development fails to meet expectations; The impact of covid-19 epidemic exceeded expectations.
