\u3000\u30 Jinzai Food Group Co.Ltd(003000) 14 Eve Energy Co.Ltd(300014) )
Event: the company released its annual report for 2021, which realized an operating revenue of 16.89 billion, a year-on-year increase of 107.06%, and a net profit attributable to the parent company of 2.9 billion, a year-on-year increase of 75.89%, which was in the middle of the previous performance forecast, in line with expectations.
The revenue scale of power battery has increased significantly, consolidating confidence. The operating revenue of Yiwei power in 2021 was 10.39 billion, a year-on-year increase of 4 times, the net profit was 618 million, and the net interest rate was 6%, a year-on-year decrease of 5pct, mainly due to the continuous rise in the price of upstream raw materials. The company's profitability of soft pack batteries is still good. It is expected that the shipment of soft pack batteries will exceed 7gwh, and the net interest rate will remain at about 8%. The company's power battery capacity expanded significantly to escort the rapid growth. In 2021, the capacity of lithium iron phosphate battery was 20gwh, with a year-on-year increase of 233%. The total equity capacity was about 33gwh, and the growth rate was nearly doubled.
The revenue and capacity of cylindrical batteries increased, and the profit of lithium primary batteries was stable. In 2021, lithium primary battery achieved a revenue of 1.85 billion, with a gross profit margin of 41.56%, maintained at more than 40% throughout the year, and the profit is stable. In 2020, the demand for electric tools broke out. The company's cylindrical batteries were in short supply and the production capacity expanded significantly. The production capacity of cylindrical batteries was 300 million in 2020, 600 million in mid-2021, 580 million were expected to be shipped, and the revenue of cylindrical batteries was about 4.1 billion, doubling year-on-year. At present, the demand of the small cylindrical battery industry is strong. The company's small cylindrical battery is expected to maintain high growth in 2022, and the shipment is expected to be about 1 billion.
Investment suggestion: we estimate that the operating revenue of the company from 2022 to 2024 will be 29.6/45.4/76.9 billion yuan respectively, with a year-on-year growth rate of 75% / 53% / 69%. The net profit attributable to the parent company was RMB 2.93/5.59/8.08 billion respectively, with a year-on-year increase of 0.9% / 90.5% / 44.5%. EPS is 1.54/2.94/4.25 yuan, and the current share price corresponds to PE is 37 / 19 / 13. 35 times valuation in 2023, corresponding to the market value of 19.5 billion, corresponding to the stock price of 103 yuan, first coverage, and "recommended" rating.
Risk warning: the release of the company's production capacity is less than expected; The continuous rise in the price of raw materials leads to the rise in the cost of the company; Downstream demand was lower than expected.
