\u3000\u3 China Vanke Co.Ltd(000002) 601 Lb Group Co.Ltd(002601) )
Event: Lb Group Co.Ltd(002601) released the annual report of 2021. During the reporting period, the company achieved a revenue of 20.566 billion yuan, a year-on-year increase of + 45.77%; The net profit attributable to the parent company was 4.676 billion yuan, a year-on-year increase of + 104.33%. Among them, 2021q4 company achieved a revenue of 5.297 billion yuan, a year-on-year increase of + 25.83% and a month on month increase of - 2.45%; The net profit attributable to the parent company was 846 million yuan, up + 149.48% year-on-year and - 39.42% month on month. The company released the first quarterly report of 2022. During the reporting period, the company achieved a revenue of 6.068 billion yuan, a year-on-year increase of + 30.63% and a month on month increase of + 14.54%; The net profit attributable to the parent company was 1.064 billion yuan, a year-on-year increase of +0.03% and a month on month increase of +25.83%.
The boom of main products continued, the export of titanium dioxide increased, and Q1 performance met expectations. In terms of price difference, according to Longzhong information, the market price of titanium concentrate, titanium dioxide and sponge titanium in 21q4 was + 25% ~ + 47% year-on-year, 0% ~ + 18% month on month. The price difference of titanium dioxide in sulfuric acid method (rutile) and chlorination method was + 4%, + 8% month on month. The price of 22q1 was basically the same month on month, and the boom of the company's main products continued. In terms of production and marketing, it was announced that in 2021, the capacity utilization rate of titanium dioxide and sponge titanium of the company was 89% and 99%, and the sales volume of 21h2 sulfuric acid method, chlorination method titanium dioxide and sponge titanium was 3117, 1284 and 6000 tons, with a year-on-year increase of - 7.6% to - 8.1%, which was basically the same month on month; In terms of export, according to Baichuan Yingfu, the export volume of titanium dioxide in 21q4 and 22q1 (January and February) was 373000 and 243000 tons, with a year-on-year increase of + 15% and + 21%, and the average export price was ~ 19000 yuan / ton, maintaining a high level. Overall, due to the increase in transportation costs caused by the increase in overseas sales, combined with equity incentives and workshop repair costs, 21q4 and 22q1 companies realized gross profits of 2.117 and 2.113 billion yuan, with a year-on-year increase of + 79% and + 26%, and the expense rate (four fees & taxes) was 19.7% and 12.8%, with a year-on-year increase of + 14pct and + 3.4pct.
The incremental implementation of new energy is imminent, carry out downstream strategic cooperation and layout upstream lithium resources. Relying on the advantages of industrial chain and large-scale production technology, the company has made great strides into the field of new energy. According to the announcement, the company has an annual output of 200000 tons of battery material grade iron phosphate project (50000 tons of iron phosphate in phase I), an annual output of 200000 tons of lithium-ion battery material industrialization project (50000 tons of lithium iron phosphate in phase I) The project of artificial graphite negative electrode material for lithium ion battery with an annual output of 100000 tons (phase I 50000 tons of graphite negative electrode) has entered the trial production stage or has the conditions for production. According to the announcement, the company has recently signed strategic cooperation framework agreements with Tianmu pioneer and Xiamen Itg Group Corp.Ltd(600755) Xiamen Itg Group Corp.Ltd(600755) ; On the other hand, the company actively arranges the upstream and plans to establish a joint venture with Kaiyuan mining in Tanzania to cooperate on a hard rock lithium exploration right held by Asia Africa geology, an overseas subsidiary of Kaiyuan mining, in Dodoma Province, Tanzania. If the project is implemented, it is conducive to further strengthen the company's vertical integrated production mode and is of positive significance to the company's strategic layout in the new energy industry.
The titanium industry has expanded steadily, and the sponge titanium business is expected to benefit for a long time. According to the announcement, the company's Longbai Lufeng production line with an annual output of 200000 tons of chlorinated titanium dioxide is expected to be completed and put into operation in December 2022, and the new materials company has conducted equipment commissioning with an annual output of 100000 tons of chlorinated titanium dioxide; The equipment installation and commissioning of Yunnan Guoti's 30000 T / a rotor grade sponge titanium intelligent manufacturing technology transformation project (15000 tons in phase I), the 10000 t / a sponge titanium production line upgrading project, and Gansu Guoti's 30000 T / a rotor grade sponge titanium technology upgrading project are under way. Sponge titanium is an important raw material for the production of titanium materials, which are widely used in aerospace and other fields. The Russian state-owned enterprise vsmpo-avisma is the world's largest supplier of sponge titanium and titanium materials (34000 tons / year). According to Reuters, nearly one-third of Boeing's titanium metal comes from Russia, and Airbus's demand accounts for 50%. Since the outbreak of the conflict between Russia and Ukraine, Boeing has gradually withdrawn its business in Russia, And stopped purchasing titanium from Russia, while Airbus is also in a dilemma. Recently, Japan's Toho titanium has received customers' request to increase the supply of 20 Jinzai Food Group Co.Ltd(003000) tons of sponge titanium at the end of the year with the transfer of orders from the U.S. aviation industry. Therefore, due to the superposition of overseas order transfer caused by local market fragmentation, the demand for titanium materials in China's chemical, aerospace and marine engineering industries has continued to grow in recent years, and the company's sponge titanium business is expected to continue to benefit in the future.
Investment suggestion: maintain the Buy-A investment rating. We expect the net profit of the company from 2022 to 2024 to be 5.04 billion yuan, 5.82 billion yuan and 6.78 billion yuan respectively.
Risk tip: the product price has fallen sharply and the project construction progress is less than expected
