\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 549 Xiamen Tungsten Co.Ltd(600549) )
Events
The company released the first quarterly report of 2022 on the evening of April 26. In the first quarter of 2022, the company achieved a revenue of 10.506 billion yuan, a year-on-year increase of 66.83%; The net profit attributable to the parent company was 379 million yuan, a year-on-year increase of 23.3%; The net profit deducted from non parent company was 320 million yuan, with a year-on-year increase of 13.85%; EPS was 0.27 yuan, a year-on-year increase of 23.32%.
Commentary
The three main businesses of Q1 operated steadily and their performance met expectations. 1) Tungsten and molybdenum business: Q1 revenue was 3.095 billion yuan, with an increase of 31.29%; The profit was 359 million yuan, an increase of 3.22%. Among them, the sales volume of cemented carbide was 1542 tons, an increase of 0.14% at the same time; The sales volume of cutting tools was 12.07 million, an increase of 5.87% at the same time; The sales volume of fine tungsten wire was 3.5 billion meters, an increase of 107.46% at the same time. 2) New energy business: Q1 revenue was 6.042 billion yuan, an increase of 103.21% at the same time; The profit was 237 million yuan, an increase of 74.12%. Among them, the sales volume of cathode materials was 18400 tons, an increase of 57.22%. 3) Rare earth business: Q1 revenue was 1.329 billion yuan, an increase of 43.49%; The profit was 73 million yuan, an increase of 47.63% at the same time. Among them, the sales volume of magnetic materials was 13000 tons, an increase of 40.06%.
Xtc New Energy Materials(Xiamen) Co.Ltd(688778) Haijing base’s 15000 ton high nickel ternary project. In order to meet the market demand for high nickel ternary, the company invested 471 million yuan to build a 15000 ton high nickel ternary project in Haijing base, which is expected to be started in July 22 and put into operation in December 23. Haijing base is currently building a 4 + 30000 ton ternary project. After the high nickel ternary project is put into operation, the annual production capacity of Haijing base will reach 85000 tons. In addition, the company plans to build a 100000 ton lithium iron phosphate project in Ya’an, Sichuan, with 20000 tons in the first phase.
The construction project of tungsten molybdenum new materials continued to advance. The company’s Xiamen Jinlu cemented carbide Industrial Park project is expected to be put into operation in the second half of phase I 22 and phase II 24 years; Thailand Jinlu cemented carbide phase II project is expected to be put into operation in 24 years, and Xiamen Jinlu 10 million indexable blades project is expected to be put into operation at the end of 22 years; Xiamen Jinlu 2.1 million pieces of overall cutting tools project is expected to be put into operation by the end of 23; Xiamen Honglu 28.8 billion meter fine tungsten wire project is expected to be put into operation in the second half of the year, and the 60 billion meter photovoltaic tungsten wire project is expected to be put into operation by the end of the year.
Profit forecast & investment suggestions
Since most of the company’s projects under construction are put into operation after 23 years, the net profit attributable to the parent company in 22-23 years is reduced by 34% and 41% respectively. It is expected that the net profit attributable to the parent company in 22-24 years will be 1.549 billion yuan, 2.016 billion yuan and 2.447 billion yuan respectively, with corresponding EPS of 109 yuan, 1.42 yuan and 1.73 yuan respectively, and corresponding PE of 13 times, 10 times and 8 times respectively, maintaining the “buy” rating.
Risk tips
Risk of raw material supply and price fluctuation; Risk of high concentration of downstream customers; Policy risks, etc.
