\u3000\u3 China Vanke Co.Ltd(000002) 738 Sinomine Resource Group Co.Ltd(002738) )
Event: on April 26 and 27, the company released 2021 annual report and 22q1 quarterly report respectively. 1) In 2021, the company achieved a revenue of 2.394 billion yuan, a year-on-year increase of 87.7%; The net profit attributable to the parent company was 558 million yuan, a year-on-year increase of 220.3%; Net profit deducted from non parent company was 540 million yuan, with a year-on-year increase of 255%. 2) In 2021q4, the company achieved a revenue of 999 million yuan, an increase of 120.8% year-on-year and 91.9% month on month; The net profit attributable to the parent company was 256 million yuan, an increase of 247.1% year-on-year and 98.2% month on month; Net profit deducted from non parent company was 248 million yuan, with a year-on-year increase of 250.5% and a month on month increase of 93.4%. 3) The company’s 22q1 revenue was 1.848 billion yuan, a year-on-year increase of 399.0% and a month on month increase of 84.96%; The net profit attributable to the parent company was 775 million yuan, an increase of 866.3% year-on-year and 202.8% month on month. Each additional 10 shares of the company’s capital will be paid to all shareholders with a cash dividend of RMB 1 for each additional 10 shares.
Both volume and price rose, production and marketing flourished, and the performance was brilliant. In 2021, the company’s lithium salt business (including lithium fluoride, lithium hydroxide and lithium carbonate) had a revenue of 942 million yuan, a year-on-year increase of 393.42%; The gross profit margin was 50.04%, an increase of 4.86% over the interim report, and a significant increase of 12.85% year-on-year in 2020. The price of lithium accelerated in 2021. The average prices of domestic battery grade lithium carbonate and lithium hydroxide were 121500 yuan / ton and 114300 yuan / ton respectively, up 176% and 120% year-on-year. In 2021, the production, sales and sales revenue of cesium salt sector increased significantly, realizing a revenue of 801 million yuan, a year-on-year increase of 59.41%; The gross profit was 527 million yuan, a year-on-year increase of 86.35%. At the same time, by optimizing the product structure, the comprehensive gross profit margin increased by 1.95% to 66.26% year-on-year. With the consensus reached on the transformation of global green economy, the application field of cesium salt industry has been gradually opened, and the company has more obvious advantages in. 22q1 company has a good performance, and the net profit attributable to the parent company has increased significantly year-on-year and month on month, which is higher than the net profit attributable to the parent company in 2021. The main reason is that the market demand for new energy and new materials in the downstream has increased significantly, which drives the price rise of the company’s products, and the production and operation of lithium salt, cesium salt and other businesses of the company are good.
The production capacity continues to expand and the profit growth can be expected. Capacity: the company’s capacity of 25000 tons of battery grade lithium salt has been completed in October 2021. It is expected that more than 70-80% of the capacity of 25000 tons of battery grade lithium hydroxide and battery grade lithium carbonate will be released in 2022, and the output will exceed 20000 tons, which can be fully reached in 2023. In addition, the company plans to build a 35000 ton lithium salt production line, which is expected to reach a total capacity of 60000 tons after it is put into operation at the end of 2023. Resources: the 120000 ton beneficiation capacity of the company’s Tanco mine has resumed production in October, 21. Its new 500000 ton / year concentrator and open-pit mining scheme are in the feasibility stage. The bikita mine to be purchased currently has an annual 700000 ton technical lithium permeable feldspar beneficiation capacity, and the new 1.05 million ton / year mining and beneficiation expansion project is expected to be put into operation in early 2023. With the resumption of 120000 tons of mining and beneficiation capacity of Tanco mine and the subsequent supply of 700000 tons of capacity of bikita, it is expected that the self-sufficiency rate of lithium ore will reach 30-40% in 22 years. With the promotion of the expansion of production of the two mines, the self-sufficiency rate of lithium salt products and raw materials of the company will gradually increase in the future and thicken the performance of the company.
Investment suggestion: considering the high price of lithium salt and the improvement of the company’s self-sufficiency rate of lithium resources after the production and expansion of bikita mine, we expect the company to realize a net profit attributable to the parent company of RMB 2.585/3.267/5.447 billion from 2022 to 2024, and the PE corresponding to the closing price on April 27 is 9 / 7 / 4x respectively, maintaining the “recommended” rating.
Risk tip: the sales volume of new energy vehicles is lower than expected, and the construction progress of self owned mine projects is lower than expected.
