\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 884 Ningbo Shanshan Co.Ltd(600884) )
Event: the company released its annual report for 2021, realizing an operating revenue of 20.7 billion, a year-on-year increase of 151.94%; The net profit attributable to the parent company was 3.34 billion, a year-on-year increase of 2320%; The net profit after deducting non attributable assets was 1.885 billion, up from – 164 million in the same period in 2020, turning losses into profits.
The company plans to increase the capital of Shanghai Shanshan lithium battery, the holding subsidiary of the company, through four strategic investors: Shanshan new energy and Ningbo Meishan free trade port wending Investment Co., Ltd. Byd Company Limited(002594) , Ningde New Energy Technology Co., Ltd. Petrochina Company Limited(601857) group Kunlun Capital Co., Ltd., with a total capital increase of 3.05 billion yuan, and subscribe for the newly increased registered capital of Shanghai Shanshan lithium battery.
Comments:
Focusing on lithium cathode + polarizer, the company’s performance greatly exceeded expectations. The company’s business mainly focuses on lithium battery materials and polarizers. In terms of lithium battery materials, in 2021, the company shipped 101000 tons of negative materials, a year-on-year increase of 65.74%, 17000 tons of electrolyte and 22000 tons of positive materials. The total revenue of lithium battery materials was 9.13 billion yuan, a year-on-year increase of 31.95%, and the gross profit was 2.48 billion yuan, a year-on-year increase of 98.4%. In terms of polarizers, the company shipped 11000 square meters, achieved a revenue of 9.94 billion yuan and a gross profit of 2.445 billion yuan. The performance is close to the upper limit of the forecast and greatly exceeds the market expectation.
Technical strength casts the core competitiveness and product quality to seize the high-end market. The quality of the company’s negative electrode materials is excellent. High end material fast charging products have been recognized by downstream customers with the company’s product quality. In 21 years, the company’s shipment proportion has increased to 50%. At the same time, the company’s silicon-based negative electrode products have taken the lead in realizing large-scale market application, and the technology is significantly ahead of industry competitors. The company continues to research and develop new technologies and products, such as developing the third generation of silicon oxide materials and the new generation of silicon carbon materials, developing the application of natural graphite in large EV, developing high-capacity and high first effect hard carbon and low-cost soft carbon for lithium battery, etc.
Accelerated expansion of graphite integrated production capacity is expected to continue to achieve both volume and profit. The company reached the production capacity of Baotou phase I in Inner Mongolia in 21 years, and the cost reduction effect of the integrated production line is obvious. At present, the company is accelerating Baotou phase II and Sichuan Meishan projects, of which the design capacity of Baotou phase II project is 60000 tons and the graphitization supporting facilities are 52000 tons. It has begun to climb gradually at the end of 21 years, and is expected to reach the production capacity in 22 years; Meishan project has received energy assessment and environmental assessment. 100000 tons of phase I is expected to be put into trial production by the end of 22. These two integration projects are expected to significantly improve the graphitization self-sufficiency rate of the company and reduce the cost. With the sharp rise of graphitization outsourcing price and raw material price, the company actively arranges the graphite integration project. In the future, with the improvement of graphitization self-sufficiency rate and the optimization of supply chain management, we believe that the trend of both volume and profit of the company is expected to continue.
Introduce strategic investment and deeply bind upstream and downstream high-quality suppliers / customers. The company plans to announce the introduction of Ningde new energy, Byd Company Limited(002594) , Kunlun capital and wending investment as strategic investments (among which wending investment is a wholly-owned subsidiary of catl). On the one hand, the company has established in-depth cooperation with the leading downstream battery enterprise Contemporary Amperex Technology Co.Limited(300750) and enhanced the cooperative relationship with key customers Byd Company Limited(002594) and ATL. On the other hand, Kunlun capital belongs to Petrochina Company Limited(601857) group. In 21 years, the company has established strategic cooperation with Petrochina Company Limited(601857) Jinzhou Petrochemical Company, The strategic investment is expected to further deepen cooperation and ensure the stability of the company’s supply of raw materials.
Polarizer focuses on high-end + large size, and the business will develop steadily in the future. The delivery of the company’s polarizer business has been completed since February 21. During this period, the company’s polarizer production line has been in full production and stable production. Polarizer applications are divided into TV and high-end it: in terms of TV, the company mass produces 2600mm wide production line and continues to improve the market share of large-size TV polarizer; In terms of high-end it, the company improves product quality, meets the product trend of high penetration and thin type, and passes the market certification, and the volume is imminent.
Light pack, non core business divestiture continued to advance. The company has gradually stripped off its non core business. At present, it has completed the sale of Fuyin financial leasing, disposed of the equity of energy storage business operation and maintenance platform, and is gradually completing the stripping of charging pile business, photovoltaic module assets and business. In the future, the company will focus on the two main businesses of polarizer and negative electrode, strengthen fine management and improve the market share of relevant industries. It is expected to become a double leader in the industry of polarizer and negative electrode materials.
Profit forecast and investment rating: we expect the company’s revenue from 2022 to 2024 to be 21.98 billion yuan, 28.03 billion yuan and 37.69 billion yuan respectively, with a year-on-year increase of 6.2%, 27.5% and 34.4%; The net profit attributable to the parent company was 3.47 billion yuan, 4.55 billion yuan and 5.73 billion yuan respectively, with a year-on-year increase of 3.8%, 31.1% and 26.1%. The current share price corresponds to 15.4, 11.8 and 9.3 times of PE from 2022 to 2024 respectively, maintaining the “buy” rating.
Risk factors: industry demand is less than expected risk; Price fluctuation risk of raw materials; Risks of new technology development.
