\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 18 Nanjing Hanrui Cobalt Co.Ltd(300618) )
The company released the annual report of 2021, and the profit increased by 98.25% year-on-year; The company's Cobalt and copper business has achieved rapid growth and new production capacity has been gradually released; Maintain the overweight rating.
Key points supporting rating
The company's profit in 2021 increased by 98% year-on-year, which is in line with expectations: the company released its annual report in 2021 and achieved an operating revenue of 4.35 billion yuan, a year-on-year increase of 93.00%; The profit was 663 million yuan, a year-on-year increase of 98.25%; Deduct 694 million yuan of non-profit, with a year-on-year increase of 268.94%. According to the calculation, the profit of 2021q4 was 177 million yuan, with a year-on-year increase of 2.63% and a month on month increase of 35.57%; Deduct 151 million yuan of non-profit, with a year-on-year increase of 256.45% and a month on month decrease of 0.46%. The company's annual report performance meets the forecast range.
Steady development of main business and rapid increase of cobalt and copper shipments: benefiting from the rapid development of new energy vehicle industry, the sales volume of cobalt and copper products of the company increased significantly year-on-year in 2021, with 8243 tons of cobalt products, a year-on-year increase of 38.08%, and 34599 tons of copper products, a year-on-year increase of 26.64%. The operating income of cobalt and copper business was 4.34 billion yuan, with a year-on-year increase of 93.54%, and the gross profit margin was 30.74%, with a year-on-year increase of 6.89 percentage points. Among them, the operating income of cobalt products was 2.562 billion yuan, a year-on-year increase of 125.67%, and the gross profit margin was 34.38%, a year-on-year increase of 19.08 percentage points; The operating revenue of copper products was 1.778 billion yuan, a year-on-year increase of 59.83%, and the gross profit margin was 25.48%, a year-on-year decrease of 7.08 percentage points.
The newly increased production capacity is gradually released: the company reconstructed the "5000 tons of Electrodeposited cobalt" production line in the raised capital investment project into the "6000 tons of electrodeposited copper" production line, which has been put into operation at the end of 2021; At the same time, cobalt precipitation, pressure filtration, flashing and other processes are added to the original production line, which is transformed into a "5000 ton cobalt hydroxide" production line. The project is expected to be put into operation in the second quarter of 2022. The technical transformation and expansion project of Anhui Hanrui cobalt powder production line with an annual output of 5000 tons of metal has been officially put into operation in January 2022. Ganzhou Hanrui, a subsidiary, comprehensively refined the project schedule, and phase I is expected to be officially put into operation by the end of June 2022.
Valuation
Under the current share capital, in combination with the company's annual report in 2021 and the industry supply and demand, we adjusted the company's forecast earnings per share from 2022 to 2024 to 3.92/4.14/4.38 yuan (the original forecast diluted earnings per share was 3.12/3.46/- yuan), corresponding to a price earnings ratio of 14.9/14.1/13.3 times; Maintain the overweight rating.
Main risks of rating
The demand for 3C batteries and new energy vehicles did not meet expectations; Global cobalt mining investment exceeded expectations; Price competition exceeds expectations; Technical iteration risk; Overseas operation and exchange rate risk; The impact of covid-19 epidemic exceeded expectations.
