\u3000\u3 China Vanke Co.Ltd(000002) 009 Miracle Automation Engineering Co.Ltd(002009) )
Event:
The company released the first quarterly report of 2022, realizing a revenue of 944 million yuan, a year-on-year increase of 29.95%; The net profit attributable to the parent company was 89 million yuan (excluding 78 million yuan), an increase of 121.22% year-on-year (excluding 112.72% year-on-year). The basic earnings per share is 0.24 yuan.
Profitability continues to improve, and there is room for improvement in cash flow.
During the reporting period, the company’s profitability continued to improve: the gross profit margin of sales was 23.89%, down 1.01 percentage points year-on-year; The net interest rate was 9.19%, a year-on-year increase of 3.39 percentage points, and the expense rate during the sales period was 14.17%, a year-on-year decrease of 3.39 percentage points; Roe (weighted) 4.20%, up 2.29 percentage points year-on-year. During the reporting period, the company’s debt structure remained relatively stable: the asset liability ratio decreased slightly to 64.07% year-on-year, and the current ratio and quick ratio were 1.18/0.84 respectively. During the reporting period, the company’s cash flow was poor: during the reporting period, the company’s cash to cash ratio was 79.60%, a significant year-on-year decrease of 44.8 percentage points, and the net cash outflow was 106 million yuan, a significant year-on-year decrease of 450.15%,
Lithium battery recovery is accumulated and developed, and the production capacity has entered a rapid release period.
Tianqi jintaige, a subsidiary of the company responsible for lithium battery recycling, produced 1887 gold tons of cobalt, 1024 gold tons of nickel, 436 gold tons of manganese and 1792 tons of lithium carbonate in 2021. The average metal recovery rate of cobalt, manganese and nickel is 98%, and the average recovery rate of lithium is 85%, ranking the leading level in the industry. It is expected that with the gradual promotion of production expansion and technological transformation, the overall capacity of the company’s lithium battery cycle sector will be 9000 gold tons of cobalt, manganese and nickel and 4000 tons of lithium carbonate in 2022; In 2023, the total amount of cobalt, manganese and nickel is 12000 tons of gold and 5000 tons of lithium carbonate. The company recently announced that it will build a new lithium iron phosphate recovery and treatment capacity of 150000 tons / year in 2022, of which the first phase of the project will have a treatment capacity of 50000 tons / year. By 2023, Tianqi jintaige will form a treatment capacity of 100000 tons of waste lithium batteries. The continuous expansion of the company’s lithium battery recovery business will open a long-term growth space for the company.
The company is committed to building an “Internet + recycling” platform for used lithium batteries. By deeply binding battery enterprises, battery users, recycling enterprises and related financial, technological and service companies, the company has established a nationwide waste lithium battery recycling service network to provide raw material guarantee for lithium battery recycling business. The company has recently signed cooperation agreements with FAW, jd.com and Xingheng power supply, and the platform construction is becoming more and more perfect, constantly enabling lithium battery recycling channels.
Strategic layout of the whole life cycle of automobile, coordinated development and obvious comprehensive advantages
The company is committed to serving the whole life cycle of automobile. In addition to lithium battery recycling business, intelligent equipment business and recycling equipment are deeply rooted in the automobile industry chain. It has a prominent position in automobile intelligent equipment, automobile lending, scrap equipment and other related fields. It has established a stable and close cooperative relationship with well-known automobile brands at home and abroad. Resources in the automobile industry will become an important boost to the company’s lithium battery recycling business. The diversification and coordination of the industrial chain will also enhance the company’s comprehensive competitive advantage.
Valuation analysis and rating description
It is estimated that the net profit of the company from 2022 to 2024 will be RMB 353 million, RMB 527 million and RMB 698 million respectively, and the corresponding PE will be 13 times, 9.0 times and 6.8 times respectively. Optimistic about the long-term growth potential of the company’s lithium battery recycling business and maintain the “recommended” rating.
Risk tips:
The company’s lithium battery recovery capacity is less than expected, and the profitability of other businesses is less than expected.
