\u3000\u3 China Vanke Co.Ltd(000002) 601 Lb Group Co.Ltd(002601) )
Event:
On April 19, 2022, the company released the first quarterly report of 2022: in Q1, 2022, the company realized an operating 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 return on net assets was 5.44%, a year-on-year decrease of 1.26 percentage points and a month on month increase of 0.92 percentage points. The gross profit margin of sales was 34.81%, a year-on-year decrease of 1.34 percentage points and a month on month decrease of 5.15 percentage points; The net sales interest rate was 18.41%, a year-on-year decrease of 4.62 percentage points and a month on month increase of 2.24 percentage points.
Key investment points:
The production capacity of chlorination process continues to release, and the high prosperity of titanium dioxide continues
In the first quarter of 2022, the company realized an operating 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%. Compared with the same period last year, the company's revenue increased rapidly, which mainly benefited from the continuous improvement of the company's capacity and operating load and the breakthrough of production and sales. The monthly sales volume of titanium dioxide exceeded 100000 tons in March, and the new 100000 t / a chlorinated titanium dioxide production line in Jiaozuo has also been put into operation, which began to contribute to the increase of performance; In terms of net profit attributable to the parent company, the year-on-year growth of the company is relatively slow. On the one hand, the cost rises due to the rising price of raw materials such as sulfuric acid. At the same time, the company apportioned the equity incentive expenses in the first quarter of 2022. If this part of expenses are not considered, the net profit attributable to the parent company in the first quarter increased by about 13% compared with the same period last year, reaching 1.202 billion yuan. Compared with Q4 in 2021, the net profit attributable to the parent company in the first quarter increased by 25.63% month on month. On the one hand, it benefited from the month on month growth of the production and sales of the company's main products, driving the improvement of revenue; Meanwhile, in Q1 2022, the company's sales expenses and management expenses decreased by 69 million yuan and 171 million yuan respectively month on month, contributing to the performance. In terms of gross profit margin, Q1 in 2022 decreased by 5.15 percentage points month on month, which was mainly due to the impact of the increase of raw material cost. Among them, the average price of sulfuric acid (smelting acid) in Q1 in 2022 reached 689.89 yuan / ton, with a year-on-year increase of 202.44% and a month on month increase of 23.53%, reaching a new historical height, which also led to the narrowing of the price difference of titanium dioxide. According to wind, the average market price of Q1 rutile titanium dioxide reached 1971111 yuan / ton in 2022, with a year-on-year increase of + 14.19% and a month on month increase of - 0.66%; The price difference reached 1176117 yuan / ton, a year-on-year increase of + 4.70%. The price difference narrowed slightly, but it is still at a high level.
In terms of expense rate during the period, the sales / management / financial expense rate of 2022q1 company was 1.90% / 9.20% / 0.68% respectively, with a year-on-year increase of + 1.29 / + 2.40 / - 0.18pct and a month-on-month increase of -1.57 / - 4.69 / - 0.30pct. The financial expense was well controlled. The increase in sales expense was mainly due to the increase in production and sales in the current period, transportation and miscellaneous expenses such as packaging, and the increase in the amortization of equity incentive expenses. In Q1 2022, the net cash inflow from operating activities of the company was 537 million yuan, a year-on-year decrease of 344 million yuan or 39.03%, mainly due to the decrease in the cumulative cash due from time deposits in the current period and the increase in cash paid for the purchase and construction of fixed assets in the current period.
New energy projects have been steadily promoted to create the second growth curve of performance
Under the background of double carbon strategy, the company relies on its own industrial chain advantages to actively layout the new energy industry. Using hydrogen peroxide, sodium hydroxide and ferrous sulfate, by-products of titanium dioxide, and combined with the company's experience in powder material R & D and production, the company actively layout lithium iron phosphate cathode material and graphite cathode material. Since the first announcement on August 13, 2021, the company has planned to build 350000 T / a iron phosphate, 350000 T / a lithium iron phosphate and 300000 t / a graphite cathode materials, with significant scale advantages. At the same time, the company efficiently promoted the construction of various new energy projects. The production lines of phase I of lithium iron phosphate project with an annual output of 200000 tons (with an annual output of 50000 tons) and phase I of artificial graphite cathode material project with an annual output of 100000 tons (with an annual output of 25000 tons) were officially put into operation on March 17 and March 21 respectively. It is expected that the products will enter the market in the second quarter of this year. At the same time, the company accelerated downstream verification and cooperation, and successively signed strategic cooperation agreements with BIC battery, Jiewei power, Tianmu pilot and other companies. While determining the purchase quantity of lithium battery anode and cathode materials in the next few years, the company will establish all-round cooperation from products, technology, talents to the industrial chain, complement each other's advantages, share resources, fully tap the potential of their advantageous fields and enhance their core competitiveness.
Reach strategic cooperation with Xiamen Itg Group Corp.Ltd(600755) and deepen the layout of new energy industry chain
On April 18, 2022, the company announced that the company and Xiamen Itg Group Corp.Ltd(600755) signed the strategic cooperation framework agreement and planned to supply 200000 tons of battery grade iron phosphate to Xiamen Itg Group Corp.Ltd(600755) during 20222025, and Xiamen Itg Group Corp.Ltd(600755) supplied 50000 tons of battery grade lithium carbonate, 100000 tons of needle coke, 300000 tons of petroleum coke, 200000 tons of calcined coke and 500000 tons of titanium zirconium heavy minerals to the company. In addition, the two sides agreed on the leftover materials produced in the production process of Lb Group Co.Ltd(002601) cathode materials, Xiamen Itg Group Corp.Ltd(600755) or the negative electrode recycling materials produced by its partners are used together, and complementary advantages are formed in mineral resources and future projects. This cooperation will further enhance the company's strategic advantages in battery materials and deepen the layout of the new energy industry chain
The profit forecast and investment rating predict that the net profit attributable to the parent company in 2022, 2023 and 2024 will be 5.526, 6.927 and 8.561 billion yuan respectively, and the EPS will be 2.32, 2.91 and 3.59 yuan / share, corresponding to 9, 7 and 6 times of PE, maintaining the "buy" rating.
The implementation of risk warning policies, the construction progress of new production capacity is not up to expectations, the contribution performance of new production capacity is not up to expectations, the price of raw materials fluctuates, the change of environmental protection policies and the economy drops sharply.
