\u3000\u3 China Vanke Co.Ltd(000002) 812 Yunnan Energy New Material Co.Ltd(002812) )
Conclusions and suggestions:
The company released its annual report for 2021, which realized an operating revenue of 7.98 billion yuan, yoy + 86%, and a net profit attributable to the parent company of 2.72 billion yuan, yoy + 143.6% (net profit after deduction of non-profit of 2.567 billion yuan, yoy + 159.2%), equivalent to EPS of 3.06 yuan. The company’s performance met the performance forecast and was in the middle of the performance forecast.
The company is a leading enterprise in the lithium diaphragm industry, with the ability to rapidly expand production, and has established a close relationship with downstream major customers; With the rapid growth of lithium diaphragm demand, diaphragm products will be in short supply in the next 2-3 years, and the company’s revenue scale will maintain rapid expansion and good profitability. We expect the company to achieve a net profit of 4.56 billion yuan and 6.69 billion yuan in 2022 and 2023, with a year-on-year increase of 67.8% and 46.8%, EPS of 5.1 yuan and 7.5 yuan respectively. The current share price corresponds to 37.4 times and 25.4 times of PE in 2022 and 2023 respectively. We give buying suggestions.
The company’s annual performance grew rapidly and its gross profit margin increased significantly: the company released its annual report for 2021, realizing an operating revenue of 7.98 billion yuan, yoy + 86.4%, a net profit attributable to the parent company of 2.72 billion yuan, yoy + 143.6% (net profit after deduction of non-profit of 2.57 billion yuan, yoy + 159.2%), equivalent to EPS of 3.06 yuan. The company’s performance is in line with the performance forecast and is in the middle of the performance forecast. Quarter by quarter, the company’s Q4 achieved a revenue of 2.64 billion yuan, yoy + 55.3%, a net profit attributable to the parent of 962 million yuan, yoy + 103.8% (net profit after deduction of non-profit of 940 million yuan, yoy + 117.8%), equivalent to EPS of 1.09 yuan.
During the reporting period, the company’s performance increased significantly, mainly due to the rapid development of the new energy vehicle industry in 2021, which led to the rapid growth of the demand for lithium diaphragm. The company’s annual shipment exceeded 3 billion square meters, yoy + 131%. During the reporting period, the company’s wet diaphragm market share in China reached 58%, an increase of 7 percentage points year-on-year, and the global market share reached 31%. The growth rate of the company’s net profit is faster than that of its revenue. The main reasons are as follows: 1) due to the shortage of products, the company maintains good bargaining power, and realizes rapid cost reduction by expanding the production scale, so that the company’s gross profit margin in the reporting period reaches 49.9%, an increase of 7.2 percentage points year-on-year, of which the gross profit margin of Q4 increases by 2.4 percentage points month on month compared with Q3. 2) During the reporting period, the company’s cost control ability was excellent. With the expansion of scale, all expense rates decreased significantly. The management expense rate, sales expense rate and financial expense rate were 2.71%, 0.93% and 1.92% respectively, with a year-on-year decrease of 0.93pct, 0.39pct and 2.49pct respectively.
The company’s first quarter results are in line with expectations, and the annual shipment volume is expected to increase by more than 50%. The company released the first quarter performance forecast, and the net profit attributable to the parent company in Q1 is 865 ~ 950 million yuan, yoy + 100.2% ~ 119.9%; The net profit after deducting non profit is 835 million yuan ~ 920 million yuan, yoy + 106.2% ~ 127.2%. Equivalent to EPS of 0.96 ~1.06 yuan, the company’s performance is basically in line with expectations. In the first quarter, the company’s performance maintained rapid growth, showing the strong demand for diaphragm products. The shipment volume of Q1 company was about 1.1 billion square meters, more than 1 / 3 of the shipment volume in 21 years.
By the end of 2021, the company has put into operation diaphragm production lines with a scale of 5 billion square meters, and 25 new production lines are expected to be put into operation this year. With the ramp up of production capacity, the annual diaphragm shipment of the company is expected to reach 4.5-5 billion square meters, an increase of more than 50% compared with 21 years. In order to achieve rapid development, the company has carried out close cooperation with downstream key customers, such as joint venture construction of diaphragm projects with Contemporary Amperex Technology Co.Limited(300750) and Eve Energy Co.Ltd(300014) and signing guarantee agreements with China Innovation Airlines; At the same time, the company actively expands the overseas market and realizes the localized supply capacity. The Hungarian project is gradually put into operation this year and is expected to be fully put into operation next year, forming a capacity of 400 million square meters of wet diaphragm.
Profit expectation: we expect the company to achieve a net profit of 4.56 billion yuan and 6.69 billion yuan in 2022 and 2023, with a year-on-year increase of 67.8% and 46.8%, EPS of 5.1 yuan and 7.5 yuan respectively. The current share price corresponds to 37.4 times and 25.4 times of PE in 2022 and 2023 respectively. We give buying suggestions.
