\u3000\u3 Guocheng Mining Co.Ltd(000688) 077 Earth-Panda Advanced Magnetic Material Co.Ltd(688077) )
Key investment points
Event: Earth-Panda Advanced Magnetic Material Co.Ltd(688077) disclosed the report of the first quarter of 2022. In 2022, Q1 company achieved an operating revenue of 474 million yuan, an increase of 60.81% year on year and a decrease of 6.66% month on month; The net profit attributable to the shareholders of the listed company was 52 million yuan, an increase of 73.57% year-on-year and 11.66% month on month; The non net profit deducted was 50 million yuan, a year-on-year increase of 100.31% and a month on month increase of 35.98%. The company's performance is in line with expectations.
The simultaneous rise of volume and price helped the company's performance increase year-on-year. The year-on-year change of performance. In terms of specific split, the accelerated release of magnetic material production capacity + upward selling price, 22q1 gross profit thickening and performance of 61 million yuan are the main reasons for the change of performance; Due to the withdrawal of equity incentive expenses and other factors, the expenses during the period increased by 146% year-on-year to 62 million yuan, and the profit was reduced by about 37 million yuan.
Gross profit margin improved significantly. Although the price of main raw materials rose sharply during the reporting period, the average price of praseodymium and neodymium oxide increased by 30.26% month on month from 7719 to 105500 yuan / ton, and the price of magnetic products was adjusted according to quarterly and monthly frequency, the company helped the company's 22q1 gross profit margin to 24.52% through lean management and optimizing product structure, with a year-on-year increase of 5.77 PCTs and a month on month increase of 2.32 PCTs.
During the period, the cost remained stable month on month. In 2022, the company's expense ratio was 13.07%, with a year-on-year increase of + 4.62pcts and a month on month increase of + 0.41pcts. Among them, the sales expense ratio was 1.96%, with a year-on-year ratio of -0.01pcts and a month on month ratio of + 0.12pcts; The management expense ratio was 3.85%, with a year-on-year increase of + 0.65 PCTs and a month on month increase of + 0.32 PCTs; The R & D expense ratio was 6.22%, with a year-on-year increase of + 2.54 PCTs and a month on month increase of -0.24 PCTs; The financial rate was 1.05%, with a year-on-year increase of + 1.33pcts and a month on month increase of + 0.21pcts.
Speed up the layout of capacity expansion to meet the high economic demand. At present, the company has three production bases in Hefei, Ningguo and Baotou. At present, the blank production capacity is 6000 tons, an increase of 50% over the previous year; According to the 22-year plan, the production capacity will reach 8 Tcl Technology Group Corporation(000100) 00 tons, and the 25-year production capacity is expected to reach 21000 tons (Hefei 8000 tons + Baotou 8000 tons + Ningguo 5000 tons). The CAGR of the company in 21-25 years is 36.78%.
Profit forecast and investment suggestions: it is assumed that the blank output of Nd-Fe-B magnetic materials in 2022, 2023 and 2024 will be 7000 / 11000 / 14000 tons respectively, and the net profit of the company in 2022, 2023 and 2024 will be 341, 503 and 656 million yuan respectively. As of April 18, 2022, the market value was 5.8 billion yuan, corresponding to 17 / 12 / 9x PE from 2022 to 2024, maintaining the "buy" rating of the company.
Risk warning events: price fluctuation of main products, raw material cost fluctuation, industrial policy change, project progress is less than expected, demand calculation deviation, and the risk of lag in the use of public information in the research report.
