\u3000\u3 Guocheng Mining Co.Ltd(000688) 388 Guangdong Jiayuan Technology Co.Ltd(688388) )
Event: the company achieved a total operating revenue of 963 million yuan in the first quarter of 2022, with a year-on-year increase of 81.44%; The net profit attributable to the parent company was 174 million yuan, a year-on-year increase of 57.29%; The net profit deducted from non parent company was 168 million yuan, with a year-on-year increase of 58.35%.
Comments:
Thanks to the release of production capacity, the company’s performance improved significantly in the first quarter. At present, the company’s projects under construction are in full swing, and the production capacity of Meizhou Baidu, Jiayuan era, Jiangxi Jiayuan, Shandong Jiayuan and other projects have been released successively. The company achieved a total operating revenue of 963 million yuan in the first quarter of 2022, with a significant year-on-year increase of 81.44%. The first quarter of 2022 made a good start, laying a foundation for the company’s performance in 2022.
Although the gross and net profit margin decreased slightly year-on-year, it still led the industry as a whole. In 2022q1, the gross profit margin of the company reached 30.14%, a year-on-year decrease of 1.33 percentage points and a month on month increase of 1.23 percentage points; The net profit margin reached 18.07%, a year-on-year decrease of 2.78 percentage points and a month on month decrease of 1.05 percentage points. It is speculated that the year-on-year decrease of gross and net profit margin is due to the increase of various expenses during the reporting period. In addition, the return on net assets of the company increased year-on-year. In 2022q1, the roe of the company reached 4.73% and the deduction of non roe reached 4.55%, both of which increased by 0.74 percentage points year-on-year. The gross and net profit margins of comparable companies in the same industry Nuode Investment Co.Ltd(600110) 2022q1 are 23.85% and 11.41% respectively, and Guangdong Chaohua Technology Co.Ltd(002288) 2022q1 are 24.57% and 4.94% respectively. Due to the large proportion of 4.5 micron and 6 micron copper foil produced by the company, the overall gross profit margin and net profit margin of the company are ahead of the industry.
The supply of extremely thin copper foil is in short supply, and the prosperity of lithium battery copper foil industry is not decreasing. Lithium battery copper foil technology is updated and iterated rapidly. However, affected by high capital and technical barriers, the penetration rate of extremely thin copper foil is still low. Only a few leading copper foil enterprises in China master 4.5 micron copper foil technology. At present, major lithium battery manufacturers led by Contemporary Amperex Technology Co.Limited(300750) are actively switching to 4.5 micron lithium battery copper foil. In the future, the supply of extremely thin copper foil will be in short supply Contemporary Amperex Technology Co.Limited(300750) is the company’s largest customer. With the continuous updating and iteration of power batteries, copper foil lightweight has become an inevitable trend. When Contemporary Amperex Technology Co.Limited(300750) switches to ultra-thin and extremely thin copper foil, Guangdong Jiayuan Technology Co.Ltd(688388) timely innovates technology to meet customer needs.
Maintain recommended ratings. In recent years, the company has strengthened technological innovation, and its products continue to meet the technical objectives of improving the energy density and lightweight of power batteries, so as to seize market opportunities and enhance customer stickiness. By establishing a joint venture with Contemporary Amperex Technology Co.Limited(300750) to build high-performance electrolytic copper foil, Contemporary Amperex Technology Co.Limited(300750) recognizes the company’s products and technology, and helps the company improve its position in the lithium battery copper foil industry. It is estimated that the basic earnings per share of the company from 2022 to 2023 will be 4.83 yuan and 8.31 yuan, and the current share price corresponding to PE is 12.59 times and 7.31 times, maintaining the “recommended” rating.
Risk warning. The R & D of new products and technologies is not as expected or timely; Lithium copper foil core
