\u3000\u3 Shengda Resources Co.Ltd(000603) 612 Sunstone Development Co.Ltd(603612) )
Event: on the evening of April 14, 2022, the company released its 2021 annual report. In 2021, the company achieved a revenue of 9.458 billion yuan, a year-on-year increase of 61.7%; The net profit attributable to the parent company was 620 million yuan, a year-on-year increase of 189.6%; Net profit deducted from non parent company was 614 million yuan, with a year-on-year increase of 193.5%. In 2021q4, the company achieved a revenue of 2.85 billion yuan, a year-on-year increase of 57.4% and a month on month increase of 6.3%; The net profit attributable to the parent company was 146 million yuan, an increase of 50.6% year-on-year and a decrease of 19.7% month on month; Net profit deducted from non parent company was 144 million yuan, with a year-on-year increase of 38.4% and a month on month decrease of 21.7%. The performance is better than the company’s notice.
Affected by the production restriction, the product volume increased at the same time. Volume: in 2021, the company produced and sold 2.069 million tons and 2.025 million tons of prebaked anodes, with a year-on-year increase of 9.2% and 5.0% respectively, of which the export sales volume was 643000 tons, with a year-on-year increase of 11.6%, mainly because the company has a wide range of overseas customers, and the company strives to sell 2.62 million tons in 2022. Profit: in 2021, due to the impact of energy consumption control on the supply of prebaked anode, the company’s product price increased significantly. In 2021, the company’s gross profit per ton of prebaked anode was 729 yuan, an increase of 280 yuan year-on-year; Among them, China’s gross profit per ton was 698 yuan, an increase of 288 yuan year-on-year; The gross profit per ton overseas was 797 yuan, an increase of 255 yuan year-on-year. The increase in overseas sales helped to improve the overall profitability. The gross profit margin and net profit margin of the company were 17.1% and 8.1%, increasing by 1.4pct and 3.2pct respectively.
The three charges drag down the net profit of 21q4 to the parent company, and the stock up of raw materials may increase the gross profit of 22q1 tons. The gross profit margin and net profit margin of 2021q4 company were 16.6% and 6.4%, with a month on month increase of 1.1pct and a decrease of 1.8pct respectively; The three fee rate was 5.4%, up 2.6pct month on month, mainly due to the increase in management compensation and financial expenses. Q4 purchased raw materials on bargain hunting, and its inventory increased by 1.3 billion yuan month on month, while the oil price of 22q1 rose sharply, pushing up the price of pre baked anode products. The company’s low-cost raw materials may increase its gross profit per ton. The net profit attributable to the parent company of 22q1 increased by 27.7% – 36.8% to 140150 million yuan, from – 4.1% to + 2.7% month on month, mainly due to the Winter Olympics, the production of the company was limited in North China, and the output of the company decreased.
Future highlights: 1) implement “C + strategy: dual drive and two wings, low-carbon intelligent manufacturing”. Expand and strengthen the “double drive” and consolidate the leading position of the company’s prebaked anode. The left drive wheel refers to the “prebaked anode”. The company actively expands its market share by taking advantage of the opportunity of beialuminum moving south. It is estimated that the production capacity of prebaked anode will be 2.82/3.47 million tons in 22 / 23 years, and about 5 million tons will be realized by the end of the 14th five year plan. It refers to the company’s procurement of raw materials with a low cost of nearly 3 million tons of petroleum coke in 2022, accounting for nearly 3% of the company’s supply of raw materials. 2) Accelerate the cultivation of the “two wings” of the future and build the second growth pole of lithium negative electrode. Based on the advantages of prebaked anode, the left wing provides “multi products + services” to downstream customers to help electrolytic aluminum enterprises tap the potential of carbon reduction and energy saving of electrolytic cells. Based on the advantages of petroleum coke raw materials, the right wing uses green new energy such as photovoltaic to build a new carbon material platform represented by lithium battery cathode. The company has 50000 tons of lithium battery cathode materials in Jiayuguan phase I and supporting 770mw photovoltaic project, which is expected to contribute 350 million yuan to the parent company’s net profit.
Investment suggestion: with the release of pre baked anode capacity and the active promotion of lithium battery cathode project, the company’s performance may continue to grow. We expect that the company will realize a net profit attributable to the parent company of 804 million yuan, 936 million yuan and 1198 million yuan from 2022 to 2024, with EPS of 1.75 yuan, 2.03 yuan and 2.61 yuan respectively. The PE corresponding to the closing price on April 15 is 11, 10 and 8 times respectively, maintaining the “recommended” rating.
Risk tip: the price of raw materials rises sharply, the release of production capacity is less than expected, and the downstream demand is less than expected.
