\u3000\u3 China Vanke Co.Ltd(000002) 601 Lb Group Co.Ltd(002601) )
Event: Lb Group Co.Ltd(002601) disclosed that in the first quarter report of 2022, the company realized an operating revenue of 6.068 billion yuan, a year-on-year increase of 30.63%; The net profit attributable to the parent company was 1.064 billion yuan, a year-on-year increase of 0.03%.
Comments:
Titanium dioxide sales reached a new high, and titanium dioxide is in a business cycle. The sales of titanium dioxide and sponge titanium, the company’s main products, showed a strong sales trend, and the sales volume reached a record high. In the first quarter, the company realized a gross profit of 2.112 billion yuan and a gross sales margin of 34.81%. According to Shenzhen Stock Exchange interactive Yi, the company’s titanium dioxide sales in the first quarter of 2022 increased by about 16.8% compared with the same period last year. If the equity incentive expenses apportioned in the first quarter of 2022 are not considered, the net profit attributable to the shareholders of the listed company increased by about 13% over the same period last year. In terms of titanium dioxide, according to Baichuan Yingfu, the average price of titanium dioxide in the first quarter of 2022 was 19724 yuan / ton, up 10.76% year-on-year and 1.06% month on month. On the raw material side, the average price of titanium concentrate in the first quarter of 2022 was 2157 yuan / ton, up 13.22% year-on-year and 0.80% month on month; The average price of sulfuric acid in the first quarter of 2022 was 583 yuan / ton, up 88.41% year-on-year and down 10.53% month on month. In the first quarter of 2022, the average price difference of titanium dioxide titanium concentrate sulfuric acid was 12213 yuan / ton, up 1.80% year-on-year and 3.73% month on month.
Lay out the new energy industry and cultivate the second growth curve. The company has entered the field of new energy batteries through new projects, cooperation and acquisition. The company’s waste by-product ferrous sulfate and surplus capacity caustic soda, sulfuric acid, steam and hydrogen can be directly or indirectly used in the production of positive and negative materials of lithium batteries, reduce production costs and create an industrial innovation of “titanium lithium coupling”. According to the announcement, the company signed the strategic cooperation framework agreement with Xiamen Itg Group Corp.Ltd(600755) to supply 200000 tons of battery grade iron phosphate to Xiamen Itg Group Corp.Ltd(600755) from 2022 to 2025 Xiamen Itg Group Corp.Ltd(600755) will assist the company to introduce positive and negative materials into the high-quality battery supply system outside China. Cooperation helps both sides complement each other’s advantages, share resources and enhance the company’s core competitiveness.
The “double hundred” task in 2022, and the “14th five year plan” refers to the revenue target of 50 billion. In 2022, the company formulated the “double hundred goals”, that is, the production and sales of titanium dioxide reached 1 million tons. The company’s R & D expenses in the first quarter of 2022 were 279 million yuan, a year-on-year increase of 124.03%. By increasing R & D investment, the company has accumulated advanced production line standardization, large-scale equipment and innovative production technologies for iron phosphate, lithium iron phosphate and graphite negative electrodes, helping to transform into a new energy battery material giant.
Profit forecast: maintain the profit forecast. We predict that the net profit attributable to the parent company from 2022 to 2024 will be 5.256 billion yuan, 5.867 billion yuan and 6.230 billion yuan respectively, and the corresponding PE will be 9.52/8.53/8.03x respectively, maintaining the “buy” rating.
Risk tip: the price of titanium dioxide fluctuates greatly; The new capacity is less than expected.
