\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 50 Contemporary Amperex Technology Co.Limited(300750) )
The company released its 2021 annual report and achieved a profit of 15.9 billion yuan, with a year-on-year increase of 185%. The company’s power battery business developed steadily and the energy storage battery business improved rapidly; Maintain buy rating.
Key points supporting rating
The profit in 2021 increased by 185% year-on-year, which is in line with the expectation: the company released the annual report of 2021 and achieved a revenue of 130356 billion yuan, a year-on-year increase of 159.06%; The profit was 15.931 billion yuan, a year-on-year increase of 185.34%; Deduct 13.442 billion yuan of non-profit, a year-on-year increase of 215.20%. Among them, 2021q4 achieved a profit of 8.180 billion yuan, a year-on-year increase of 267.41% and a month on month increase of 150.38%; Deduct 6.839 billion yuan of non-profit, an increase of 302.93% year-on-year and 154.71% month on month. The company’s performance meets the forecast range.
During the period, the expense rate decreased and the operating cash flow was stable: the company’s expense during 2021 was 14.787 billion yuan, and the expense rate during the period was 11.34%, a year-on-year decrease of 2.25 percentage points. The operating capacity of the company was gradually improved, and the annual net operating cash flow was 42.908 billion yuan, a significant increase of 132.82% year-on-year.
The main business has developed steadily, and the volume of foreign customers is obvious: in 2021, the output of lithium-ion battery of the company was 162.3gwh, the sales volume was 133.4gwh, and the gross profit margin of the main business was 26.28%, a year-on-year decrease of 1.48 percentage points. In terms of business, the revenue of power battery system was 91.49 billion yuan, the sales volume was 116.7 GWH, and the gross profit margin was 22%, a year-on-year decrease of 4.56 percentage points; The revenue of energy storage battery system was 13.62 billion yuan, a year-on-year increase of 601%, the sales volume was 16.7gwh, and the gross profit margin was 28.52%, a year-on-year decrease of 7.51 percentage points; The revenue of lithium battery materials business was 15.46 billion yuan, a year-on-year increase of 351%, the sales volume was 283800 tons, and the gross profit margin was 25.12%, an increase of 4.66 percentage points year-on-year. In terms of regions, China’s revenue was RMB 10.484 billion, a year-on-year increase of 141.64%, and overseas revenue was RMB 27.872 billion, a year-on-year increase of 252.47%.
The production capacity increased rapidly and Xiamen base was newly added: the production capacity of the company was 170.4gwh at the end of 2021, the capacity utilization rate was 95%, and the production capacity under construction was 140gwh. The company also announced that it plans to invest no more than 13 billion yuan in the construction of Xiamen times new energy battery industry base project in Xiamen.
Valuation
Under the current share capital, combined with the company’s performance and industry development in 2021, we predict that the company’s earnings per share in 20222024 will be 12.02/18.02/23.43 yuan (the original prediction was 12.02/18.02 / – yuan per share in 20222024), corresponding to a P / E ratio of 34.5/23.0/17.7 times; Maintain buy rating.
Main risks of rating
Supply chain tension exceeds expectations; Demand does not meet expectations; The product strength of new energy vehicles does not meet expectations; The new energy vehicle industry policy did not meet expectations; The price competition in the industrial chain exceeded expectations; The impact of the epidemic exceeded expectations.
