\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 50 Contemporary Amperex Technology Co.Limited(300750) )
Event: the company released its annual report for 2021, realizing an operating revenue of 130356 billion yuan, a year-on-year increase of 159.06%; The net profit attributable to the parent company was 15.931 billion yuan, a year-on-year increase of 185.34%; The net profit deducted from non parent company was 13.442 billion yuan, with a year-on-year increase of 215.20%. At the same time, the company plans to invest in the construction of Xiamen times new energy battery industry base, with a total investment of no more than 13 billion yuan.
Comments:
The performance is in line with expectations and has excellent profitability. The company’s 21-year net profit attributable to the parent company is the upper limit of the range of 14-16.5 billion in the previous performance forecast. Among them, Q4 achieved a revenue of 56.994 billion yuan, an increase of 203% year-on-year and 95% month on month; The net profit attributable to the parent company was 8.180 billion yuan, a year-on-year increase of 267% and a month on month increase of 150%. The growth of the company’s performance mainly depends on the growth of the demand for downstream new energy vehicles. In terms of profit margin, the gross profit margin in 2021 is 26.28% and the net profit margin is 13.70%.? Continue to expand production capacity and build an extreme manufacturing system. 1) Capacity: the company’s capacity increased from 69.10gwh in 2020 to 170.39gwh in 2021, and the capacity under construction is 140gwh. With the continuous expansion of capacity, it is expected to gradually dilute the manufacturing cost. 2) Technology R & D: in 2021, the number of R & D personnel exceeded 10000, reaching 10079, with a year-on-year increase of 80%, of which 6246 were undergraduate and above. 3) Create extreme manufacturing system: using artificial intelligence, advanced analysis, edge computing / Cloud Computing and other technologies, the company’s battery production yield, one-time pass rate and other indicators have increased significantly compared with the previous year. In September 2021, the company’s Ningde factory was selected as the “lighthouse factory” by the world economic forum in Davos, becoming the first battery factory in the world to be recognized.
The sales volume of power batteries has increased greatly and the profitability is strong. 1) Sales volume: the company’s battery sales volume in 21 years was 133.41gwh, with a year-on-year increase of 185%, of which the power battery sales volume was 116.71gwh, with a year-on-year increase of 163%. In 2021, the global market share of the company’s power battery was 32.6%, ranking first in the industry. 2) Profitability: the overall gross profit margin of 21q4 company was 24.70%, down 3.2pct month on month; The net interest rate was 15.29%, up 2.25 PCT month on month, showing strong profitability. Affected by the rising price of raw materials, the profit of 22q1 battery industry is under pressure. With the rising price of battery products and the gradual decline of the price of raw materials such as lithium carbonate in the future, the profit of battery sector is expected to usher in an inflection point.
Strengthen supply chain layout and deepen industrial cooperation. The company actively strengthens the layout in the fields of cathode, lithium ore, nickel resources, cathode and so on. 1) In December 2021, Contemporary Amperex Technology Co.Limited(300750) Bangpu integrated new energy industry project was put into operation, with a total investment of about 32 billion yuan. It is planned to build a production base with an annual output of 360000 tons of iron phosphate, 220000 tons of lithium iron phosphate, 180000 tons of ternary precursors and materials, 40000 tons of lithium cobalt, 40000 tons of recycled graphite and 300000 tons of battery recycling. It is expected that phase I will be put into operation in 2023 and all will be put into operation in 2025. 2) The holding subsidiary of the company, puqin times, plans to cooperate with ptaneka tambangtbk And ptindustribateraiindonesia will invest no more than US $5.968 billion in Indonesia to build a battery industry chain project integrating industries from laterite nickel ore development, pyrometallurgy, hydrometallurgy, ternary battery materials to battery recycling and ternary battery. Through the integrated layout, it is expected to ensure the stability of the supply chain and reduce costs at the same time.
Overseas market and energy storage business broke out. In 2021, the company’s overseas revenue was 27.87 billion yuan, accounting for about 21% of the total revenue, significantly higher than 16% in 2020. In terms of gross profit margin, the overseas revenue was 30.48%, higher than 25.14% in China. In terms of energy storage business, the sales volume of energy storage battery is expected to be 16.7gwh, with a year-on-year increase of 599%. The gross profit margin of energy storage sector in 21 years is 28.52%, higher than 22.00% of power battery. In the future, with the improvement of the company’s overseas supply and the growth of energy storage business, it is expected to improve the overall profitability.
Profit forecast and investment rating: we expect the company’s revenue from 2022 to 2024 to be 266.72 billion yuan, 355.67 billion yuan and 456.26 billion yuan respectively, with a year-on-year increase of 104.6%, 33.3% and 28.3%; The net profit attributable to the parent company was 27.65 billion yuan, 39.8 billion yuan and 51.28 billion yuan respectively, with a year-on-year increase of 73.5%, 43.9% and 28.8%. The current share price corresponds to 34.5, 24.0 and 18.6 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.
