\u3000\u30 Jinzai Food Group Co.Ltd(003000) 14 Eve Energy Co.Ltd(300014) )
The net profit attributable to the parent company in Q1 was 521 million yuan, with a month on month ratio of – 19.43% / – 24.47%, in line with market expectations. In 2022, Q1 company achieved a revenue of 6.734 billion yuan, a year-on-year increase of 127.69%; The net profit attributable to the parent company was 521 million yuan, a year-on-year decrease of 19.43% and a month on month decrease of 24.47%. The gross profit margin was 13.75%, down 13.19 PCT year-on-year and 3.36 PCT month on month; The net interest rate attributable to the parent company was 7.74%, with a year-on-year decrease of 14.13pct and a month on month decrease of 4.92pct. 22q1 smore and other associated enterprises contributed a total profit of 210 million, and the headquarters contributed a profit of 310 million, an increase of about 10% on a month on month basis.
Q1 power shipments increased month on month, raw materials rose, and short-term profits were under pressure. Considering overseas exports and energy storage applications, we expect the company’s Q1 power energy storage battery shipment to be 5gwh, with a month on month increase of 10-15%, contributing about 4.5 billion revenue. Due to the sharp rise in Q1 prices of lithium carbonate, nickel and other raw materials, we expect the battery gross profit margin of Q1 company to be nearly 10%, down 5pct month on month. 22q1 company’s battery prices have been rising, and we expect Q2 company’s battery profit is expected to begin to recover gradually. With the new capacity of 10gwh-30wh, it is expected to reach 10gwh-30wh in three years. In the past 23 years, the company’s new products such as Sanyuan square and Sanyuan large cylinder contributed 55gwh + shipments.
Change the purpose of raised funds, add Huizhou iron lithium power battery project, and speed up the construction of Chengdu project. In the past 20 years, the company raised 2.5 billion yuan through fixed increase, of which 1 billion yuan and 300 million yuan are planned to be invested in the construction of bean battery and lithium manganese battery projects respectively. The “passenger car power battery project (phase III)” of the subsidiary Yiwei power plans to invest a total of 1.94 billion yuan to build a 10gwh iron lithium new project in Huizhou. At the same time, the construction of Chengdu project is progressing steadily. The company plans to invest 20 billion to build a proposed 50gwh energy storage project, including 20gwh in phase I. Superimposed with Jingmen’s 153 GWH capacity planning, the company’s 2025 capacity planning will exceed 260 GWH. The initial capacity of 20gwh will be gradually completed in 2022, and it is expected to ship 10gwh + in 23 years.
Affected by the epidemic and the increase of R & D expenditure, the performance of SIMORE Q1 declined, and it is expected to recover gradually in the follow-up. Affected by China’s policies, epidemic situation and the company’s increased R & D investment, the net profit of SIMORE Q1 was 527 million yuan, a year-on-year decrease of 55.3%, and the adjusted profit reached 553 million yuan, a year-on-year decrease of 54.9%. We calculate that SIMORE Q1 contributed 170 million yuan to Yiwei’s investment income. We expect the performance of SIMORE in 22 years to be 4.2 billion yuan, which is expected to contribute 1.35 billion yuan of investment income to the company, a year-on-year decrease of 20%. The company plans to request the general meeting of shareholders to authorize the chairman of the company to choose the opportunity to reduce no more than 3.5% of SIMORE’s shares through block trading within one year from the date of deliberation and approval by the general meeting of shareholders.
Profit forecast and investment rating: we raised the net profit attributable to the parent company from 2022 to 2024 to 31 / 54 / 7.6 billion yuan (the original forecast value was 28 / 5 / 7 billion yuan), with a year-on-year increase of 6% / 75% / 41%, corresponding to 37x / 21x / 15x PE. Considering the obvious improvement of the company’s profit in 23 years, we give a certain valuation premium, give 58 times PE in 22 years, corresponding to the target price of 94.0 yuan, and maintain the “buy” rating.
Risk tip: the sales volume of electric vehicles is lower than expected, and the price of upstream raw materials fluctuates sharply.
