\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 110 Nuode Investment Co.Ltd(600110) )
Event overview: on April 18, 2022, the company released the annual report of 2021. The annual revenue was RMB 4.446 billion, with a year-on-year increase of 106.32%, and the net profit attributable to the parent was RMB 405 million, with a year-on-year increase of 742193%. After deduction, the net profit attributable to the parent was RMB 375 million, turning losses into profits.
The asset structure was optimized and the financial expense rate decreased. Revenue and net profit: the company’s 2021q4 revenue was 1.210 billion yuan, with an increase of 52.96% and a decrease of 1.51%, the net profit attributable to the parent was 84 million yuan, with an increase of 284.66% and a decrease of 30.47%, and the net profit attributable to the parent after deduction was 79 million yuan, with an increase of 352.60% and a decrease of 25.19%. Gross profit margin: the gross profit margin in 2021q4 was 25.54%, an increase of 8.46pct at the same time and 0.89pct at the same time. The main reason for the month on month increase of gross profit margin was the increase of product price of the company; Net interest rate: 2021q4 net interest rate was 6.90%, with an increase of 4.16pct and a decrease of 2.88pct. The company’s Q4 accrued asset impairment loss of 62 million yuan, mainly including the impairment of inventories and old production lines such as Qinghai. Expense rate: during 2021q4, the expense rate of the company was 12.35%, with a year-on-year rate of -2.70pct, of which the expense rates of sales, management, R & D and finance were 0.63%, 3.07%, 3.68% and 4.97% respectively, with a year-on-year change of 1.84%, – 1.48%, 1.88% and – 4.94%. The reduction of financial expense rate is due to the decline of the company’s asset liability ratio, which decreased by 1.5pct in 21 years compared with 22 years.
The production capacity continued to expand, and the net profit per ton increased significantly. In the past 21 years, the company has achieved a revenue of 4.086 billion yuan of copper foil, with a year-on-year increase of 116.43%. The annual sales volume is about 35100 tons, with a year-on-year increase of 72.74%. We speculate that Q4 shipments are about 9500 tons. At present, the company has a copper foil production capacity of 43000 tons. With the gradual production of Qinghai and Huizhou bases, the company’s 22-year production capacity can reach 85000 tons. We expect its shipment volume to be about 6 Shenzhen Sdg Information Co.Ltd(000070) 000 tons, maintaining the leading position. The company’s net profit per ton in 21q4 was about 13000 yuan / ton, which continued to increase steadily on a month on month basis. The main reason was that the downstream was booming, the supply and demand of copper foil was relatively tight, and the company’s high capacity utilization rate superimposed on the price rise of some customers. We expect that the supply-demand relationship will continue to be tight in 22 years. With the optimization of the company’s asset structure, the financial cost per ton will continue to decrease.
The product structure is optimized and the customer structure is rich. The company’s main products are 4.5/6/8 micron lithium battery copper foil and standard copper foil. Among them, 6 micron copper foil has grown into a mainstream product in the industry. The mass production of 4.5 micron copper foil was successful at the end of 20 and has been applied in leading lithium battery enterprises such as Contemporary Amperex Technology Co.Limited(300750) , China Innovation airlines, etc. 4 / 4.5 micron copper foil has high technical barriers and excellent performance, which can effectively improve the energy density of the battery, and the penetration rate will gradually increase in the future. The company’s shipment of 4 / 4.5 micron copper foil accounts for about 20-25% in 21 years, and we expect the shipment proportion to increase to 25% – 30% in 22 years. The company is one of the first companies to produce lithium battery copper foil in China. With good product quality and stable supply capacity, the company has accumulated high-quality customers at home and abroad, including Contemporary Amperex Technology Co.Limited(300750) (catl), Byd Company Limited(002594) , zhongchuangxin aviation (the former AVIC lithium battery), Gotion High-Tech Co.Ltd(002074) , Eve Energy Co.Ltd(300014) , Farasis Energy (Gan Zhou) Co.Ltd(688567) , LG Chemical, Panasonic, ATL, ski and other major power battery enterprises at home and abroad. The leading position in the field of lithium battery copper foil is stable.
Investment suggestion: we expect the net profit attributable to the parent company from 2022 to 2024 to be 933, 1373 and 1872 million yuan, with a simultaneous increase of 130.3%, 47.2% and 36.4%, corresponding to the valuation of 19, 13 and 10 times PE. Considering the company’s active expansion of production, the first mover advantage of 4.5 micron copper foil is obvious, and the “recommended” rating is maintained.
Risk tip: the sales of new energy vehicles are less than expected; The production progress of new capacity is less than expected.
