\u3000\u3 China Vanke Co.Ltd(000002) 601 Lb Group Co.Ltd(002601) )
Event: the company released the annual report of 2021. During the reporting period, the company realized an operating revenue of 20.617 billion yuan, a year-on-year increase of + 45.56%; The net profit attributable to the parent company was 4.676 billion yuan, a year-on-year increase of + 104.33%. The net profit attributable to the parent company in a single quarter was RMB 1.064/13.71/13.96/846 billion respectively.
The simultaneous rise in the volume and price of titanium dioxide powder has led to rapid growth in performance. In terms of production and sales, 902200 tons of titanium dioxide were produced in 2021, 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%, including 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%. In terms of price, the average selling price of titanium dioxide in 2021 was 17314 yuan / ton, a year-on-year increase of + 31.6%. In 2021, the gross profit margin of the company increased by 6.58pct to 41.93%, and the net profit margin increased by 6.53pct to 23.03%.
The titanium industry continues to expand and its leading position is becoming more and more stable. In terms of titanium dioxide by chlorination, the 100000 t / a production capacity equipment of the new materials company has been commissioned, and the 200000 t / a production capacity of Lufeng, Yunnan is expected to be completed and put into operation in December 2022. The 200000 t / a production capacity of Panzhihua and the 200000 t / a titanium dioxide post-treatment project of Nanzhang are also planned in the future. In terms of sponge titanium, the 10000 t / a upgrading of Yunnan national titanium and the annual output of 30000 T / a rotor sponge titanium (15000 T / A in phase I) and 30000 T / a rotor sponge titanium in Gansu national titanium are undergoing equipment installation and commissioning. The titanium industry continues to be bigger and stronger, and the leading position cannot be shaken.
The layout of new energy cuts into the second growth curve, and the volume is imminent. Taking advantage of the industrial chain, the company has planned the 200000 ton / year battery material grade iron phosphate project, the 200000 ton / year lithium-ion battery material industrialization project, the 100000 ton / year artificial graphite cathode material project for lithium-ion battery, the 200000 ton / year lithium-ion battery cathode material integration project, and the 150000 ton / year electronic grade lithium iron phosphate project, including the 200000 ton / year 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.
Investment suggestion: we expect the net profit attributable to the parent company from 2022 to 2024 to be 5.749 billion yuan, EPS to be 2.41/2.80/3.18 yuan and PE to be 9 / 8 / 7 times respectively. Considering that the company’s titanium dioxide is the third largest in the world and is expected to grow into a global leader, the advantages of industrial chain integration are obvious, the new capacity is released one after another, the profit is improved and covered for the first time, we are given a “buy” rating.
Risk tip: the product price has fallen sharply, and the progress of new projects is less than expected.
