\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 884 Ningbo Shanshan Co.Ltd(600884) )
Matters:
The company released the first quarterly report of 21 years, and achieved an operating revenue of 5.03 billion yuan during the reporting period, with a year-on-year increase of 25.76%; The net profit attributable to the shareholders of the listed company was 807 million yuan, a year-on-year increase of 166.93%; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 615 million yuan, a year-on-year increase of 118.74%.
Ping An View:
The performance increased rapidly, and the deduction of non net profit exceeded the upper limit of the notice: the company’s 1q21 achieved a revenue of 5.03 billion yuan, a year-on-year increase of 25.8%, which was basically the same month on month; The net profit deducted from non parent company was 615 million yuan, with a year-on-year increase of 118.7% and a month on month increase of 11.4%, exceeding the forecast upper limit of 600 million yuan. Among them, the net profit attributable to the parent company of Q1 negative electrode is 147 million yuan, with a year-on-year increase of 44%. It is estimated that the shipment of Q1 is 260 Xinjiang Tianshun Supply Chain Co.Ltd(002800) 0 tons, and the net profit per ton is about 6000 yuan; The net profit of polarizer is 353 million yuan, with a year-on-year increase of 83%. It is expected that 320340 million square meters will be shipped in Q1. Q1 non recurring profit and loss was 190 million yuan, mainly due to the investment income obtained from the sale of Yongshan lithium industry. The comprehensive gross profit margin of Q1 company was 25.54%, slightly decreased by 0.24pct year-on-year, increased by 1.42pct month on month, and the net profit margin was 16.63%, increased by 7.7pct year-on-year and 4.4pct month on month. The two main businesses of the company, lithium battery materials and polarizers, continued to have a high boom, supporting the upward profitability.
Business indicators have improved significantly, and non core businesses have been gradually cleared out: after the acquisition of polarizer business, the company’s expenses have improved significantly during the period; 1q21 sales expense ratio was 1.92%, with a year-on-year decrease of 1.17pct; The management fee rate was 4.18%, a year-on-year decrease of 1.46 PCT; The R & D expense ratio was 3.48%, with a year-on-year decrease of 0.26pct; The financial expense rate was 3.04%, a year-on-year decrease of 0.3pct. The net operating cash flow of this period was 107 million yuan, mainly due to the net operating cash inflow of polarizer business of 368 million yuan during the reporting period. The operation of polarizer business developed steadily, the customer structure was good and the payment collection was stable. The company continued to implement the focus strategy and orderly divested its non core business. The remaining equity of Fuyin financial leasing has been sold, the equity disposal of the energy storage business operation and maintenance platform company has been completed, the charging pile business has reached the acquisition intention, the photovoltaic module assets and business have signed a strategic framework cooperation agreement with the buyer, and the other party has paid the intention money and is advancing as planned.
The construction of negative electrode capacity was accelerated and the investment cost of production line was reduced. The company has accelerated the expansion of Baotou phase II in Inner Mongolia and Meishan integrated base in Sichuan. The trial production of 60000 tons of Baotou phase II in Inner Mongolia will be carried out at the end of 2021. It is expected to reach the production capacity in Q3 in 22, with a total annual capacity of more than 180000 tons and a shipment of more than 160000 tons; In 23 years, with the effective release of 100000 tons of Meishan integration phase I in Sichuan, the negative electrode and graphitization capacity will reach 300000 and 200000 tons respectively. In addition, the company plans to build a 300000 ton negative pole integration project in Yunnan in two phases, 200000 tons in the first phase and 100000 tons in the second phase. The construction cycle is 16 months. The planned fixed asset investment is 9.7 billion yuan, corresponding to 32000 yuan per ton, which is about 20% lower than that of Meishan project in the early stage, showing the company’s strong ability to optimize the production line. At present, the company’s planned production capacity has surpassed other competitors, with prominent scale advantages.
Investment suggestion: the company has carried out large-scale business reorganization in the past 20 years and established the strategic direction of two wheel drive of lithium battery materials and polarizers; Over the past 21 years, the company’s quarterly performance has continued to exceed expectations, and market confidence has been further repaired and thickened. The high prosperity of the electric vehicle industry and the stable growth of the panel industry provide the company with a strategic window for development. The business transformation from “addition” to “subtraction” is expected to have a positive impact on the company’s performance. We maintain the company’s forecast of net profit attributable to parent company for 22-24 years to be RMB 3.53/46.4/5.84 billion respectively, corresponding to the closing price of PE on April 27 to be 13.1/9.9/7.9 times respectively, and maintain the “strongly recommended” rating.
Risk tips: 1) the risk that the sales growth of new energy vehicles is lower than expected. If the policy support is less than expected, the product upgrading and the development of battery technology are less than expected, it will have a negative impact on the promotion of new energy vehicles and the demand for power batteries. 2) The risk of sharp decline in product prices due to intensified industry competition. The rapid development of the new energy vehicle market has attracted many suppliers to expand production capacity one after another. The price war brought by the intensification of industry competition will significantly affect the profitability of enterprises. 3) The risk that the business structure adjustment is less than expected. If the reporting time of other businesses is slower than expected, it will affect the release of the company’s profits.
