\u3000\u3000 Xinyangfeng Agricultural Technology Co.Ltd(000902) (000902)
Event: on January 10, the company announced that it had signed a strategic cooperation framework agreement with Gem Co.Ltd(002340) , and the wholly-owned subsidiary Yangfeng Chuyuan New Energy Technology Co., Ltd. and Gem Co.Ltd(002340) (Hubei) new energy materials Co., Ltd. signed an investment agreement for the iron phosphate project with an annual output of 150000 tons.
The 200000 ton iron phosphate phase II project joins hands with Gem Co.Ltd(002340) to take advantage of Jingmen’s industrial agglomeration and give full play to its advantages
1) the company announced the 200000 t / a iron phosphate project (and upstream supporting projects) in August 2021, of which the phase I 50000 T iron phosphate project was implemented in cooperation with Changzhou lithium source; Phase II of the announcement is 150000 T / A, which is jointly funded by Yangfeng Chuyuan and Gem Co.Ltd(002340) new energy, and the joint venture is responsible for the specific implementation.
2) Gem Co.Ltd(002340) is engaged in the new energy business with ternary precursor, Co3O4 and power battery recovery as the main body, can provide core technology for cooperation, lead the development of downstream market, develop lithium iron phosphate manufacturing technology, and lead the construction of lithium iron phosphate material with an annual output of no less than 100000 tons, so as to lay a solid foundation for the production and sales of iron phosphate of the joint venture.
3) the location of Jingmen Xinyangfeng Agricultural Technology Co.Ltd(000902) headquarters is also the main base of Gem Co.Ltd(002340) . The two cooperation is conducive to further leveraging the regional advantages of Jingmen’s new energy industry agglomeration represented by lithium iron phosphate and gaining leading advantages in construction progress and product cost.
In addition, on January 5, 2022, the company announced that Yangfeng Chuyuan New Energy Technology Co., Ltd., a wholly-owned subsidiary, intends to sign the investment / service agreement for investment attraction projects with Yidu Municipal People’s government to build a production line with an annual output of 100000 tons of iron phosphate and 50000 tons of lithium iron phosphate, supporting 100000 tons of refined phosphoric acid production line, with a total planned investment of 3 billion yuan, including about 2.5 billion yuan in fixed assets. The company has formed a new energy business platform, accelerated the multi link and multi location layout of the industrial chain, and grasped the opportunities of the new energy market!
Competitive advantages of the company: the advantages of phosphorus resources are prominent, the cash flow of the main business of compound fertilizer is strongly supported, and new energy opens up new space
The company has 1.8 million tons of monoammonium phosphate, and the major shareholder phosphate ore is expected to be injected successively in the future. Under the high demand increment brought by lithium iron phosphate, the value of the whole phosphorus resource of the company will increase. High growth in the main business of compound fertilizer and continuous improvement of profitability: the company has the advantages of products, channels and cost. With the continuous boom of Shenzhen Agricultural Products Group Co.Ltd(000061) prices such as Chinese corn, the company’s compound fertilizer performance is expected to usher in sustained high growth and bring sufficient cash flow support to the company. The new energy business makes full use of the company’s resources and regional advantages in phosphorus resources, which is expected to create a new performance growth pole for the company.
We expect that the company will realize revenue of RMB 12.098/14.354/17.983 billion from 2021 to 2023, with a year-on-year increase of 20.16% / 18.65% / 25.28%; The net profit attributable to the parent company was 1.270/1.801/2.597 billion yuan, with a year-on-year increase of 33.00% / 41.80% / 44.23%. The company has the advantages of industrial integration and resources, and maintains the “buy” rating.
Risk warning: Shenzhen Agricultural Products Group Co.Ltd(000061) and raw material price fluctuation; Risk of changes in environmental protection policies and standards; Increased competition; The strategic cooperation agreement is a framework agreement, and there are risks of uncertainty, project implementation progress and income not meeting expectations
