\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 69 Shenzhen Dynanonic Co.Ltd(300769) )
Performance:
In the first quarter of 2022, the revenue was 3.374 billion yuan, a year-on-year increase of + 561.88%, a month on month increase of + 31.25%, the net profit attributable to the parent company was 762 million yuan, a year-on-year increase of + 140277%, a month on month increase of + 36.88%, and the net profit not attributable to the parent company was 756 million yuan, a year-on-year increase of + 2136.2%, a month on month increase of 37.52%. The performance exceeded the expectation.
The amount of lithium iron phosphate positive electrode increased at the same time, the net profit per ton was 22000 yuan / ton, and the production capacity was planned to reach 350000 tons
Profit: in the first quarter of 2012, the company’s lithium iron phosphate cathode shipment was about 35000 tons, and the net profit per ton is expected to be about 22000 yuan / ton, which is 35% higher than the net profit per ton of 16000 yuan / ton in Q4 in 2021. The profitability of lithium iron phosphate cathode materials of the company has been greatly improved. We believe that on the one hand, the company benefits from the inventory income from the rise in the price of raw materials. On the other hand, the downstream demand is strong, the product supply is in short supply, the price of lithium iron continues to rise, the production and sales of the company are booming, and the economies of scale are prominent. Volume: the company currently has a capacity of 120000 tons of lithium iron phosphate cathode and plans to have a capacity of 230000 tons, including 80000 tons of joint venture with Contemporary Amperex Technology Co.Limited(300750) and 100000 tons of joint venture with Eve Energy Co.Ltd(300014) and another 50000 tons of self owned capacity. It is expected that the capacity of lithium iron phosphate cathode will reach about 350000 tons by the end of 2022. We expect that the annual shipment volume of 22 years will be about 200000 tons.
Actively expand the capacity of new phosphate series cathode materials, with a total planned capacity of 430000 tons
In terms of new materials, the company actively arranged and constructed production capacity. In September 2021 and January 2022, the company signed the production base project of new phosphate cathode materials with an annual output of 100000 tons and 330000 tons respectively. The planned total production capacity is 430000 tons. It is expected that the new cathode production capacity of 100000 tons will be put into operation by the end of 2022 and contribute to the shipment in 23 years. The new phosphate system has higher voltage platform, higher energy density and obvious competitive advantage.
Take the lead in the layout of lithium supplement business to further improve the profitability of the company
In September 2021, the company announced that it planned to invest 3.5 billion yuan to build a 25000 ton lithium supplement project, and officially laid out the lithium supplement industry chain. In January 2022, a further investment of 2 billion yuan will be made to expand the lithium supplement project of 20000 tons, with a cumulative planned production expansion of 45000 tons. Lithium replenishing agent is mainly used to improve the first efficiency and cycle life of lithium battery. With the demand for silicon-based negative electrode, the company is expected to share the excess benefits brought by the high growth of lithium replenishing business and further improve its profitability.
Investment suggestion: Based on the fact that the lithium iron phosphate battery is still in the stage of rapid development, considering the competitive advantages of the company’s global lithium iron phosphate cathode suppliers, the rapid expansion of production capacity, and the layout of new cathode materials and lithium supplement business, we raised the net profit attributable to the parent company in 202224 to RMB 1.761/20.20/2.911 billion, and the corresponding PE was 25X / 22x / 15x respectively, maintaining the “buy” rating.
Risk tip: the decline of product price, the release progress of production capacity and the development of the industry are lower than expected.
