\u3000\u30 Jinzai Food Group Co.Ltd(003000) 14 Eve Energy Co.Ltd(300014) )
The company released its annual report for 2021, and achieved a profit of 2.9 billion yuan, a year-on-year increase of 76%. The company’s consumer battery business grew steadily, the power battery business increased rapidly and maintained the buy rating.
Key points supporting rating
The company’s profit in 2021 increased by 76% year-on-year, which is in line with expectations: the company released its annual report in 2021 and achieved an operating revenue of 16.9 billion yuan, a year-on-year increase of 107.06%; The profit was 2.906 billion yuan, a year-on-year increase of 75.89%; Deduct non-profit of RMB 2.547 billion, with a year-on-year increase of 66.96%. According to the calculation, the profit of 2021q4 was 690 million yuan, a year-on-year decrease of 2.25% and a month on month decrease of 4.31%; Deduct 417 million yuan of non-profit, a year-on-year decrease of 38.67% and a month on month decrease of 40.82%. The company also announced that it plans to pay a cash dividend of 1.60 yuan (including tax) for every 10 shares. The performance of the company’s annual report is in line with expectations.
SIMORE International’s performance: benefiting from the growth of SIMORE International’s operating performance, the company realized a net investment income of 1.758 billion yuan, of which Q4 realized a net investment income of 453 million yuan, which played a certain role in thickening the annual performance.
During the period, the expense rate decreased and the operating cash flow improved significantly: the company’s expense in 2021 was 2.404 billion yuan, a year-on-year increase of 93.89%, and the expense rate in the period was 14.23%, a year-on-year decrease of 0.97 percentage points. The operating capacity of the company was gradually improved, and the annual net cash flow was 2.676 billion yuan, a year-on-year increase of 76.55%.
The overall gross profit margin is under pressure, and the power battery business is developing rapidly: under the background of sharp fluctuations in raw material prices, the company achieved a gross profit margin of 21.57% in the whole year, a year-on-year decrease of 7.44 percentage points. In terms of business, the revenue of consumer battery business was 6.876 billion yuan, a year-on-year increase of 67.79%; The power battery business achieved a revenue of 10.007 billion yuan, a year-on-year increase of 146.25%. In terms of products, the revenue of lithium primary battery was 1.853 billion yuan, a year-on-year increase of 24.22%, and the gross profit margin was 41.56%, a year-on-year decrease of 0.33 percentage points; The revenue of lithium-ion battery was 15.031 billion yuan, a year-on-year increase of 125.33%, and the gross profit margin was 19.02%, a year-on-year decrease of 7.11 percentage points.
Valuation
Under the current share capital, according to the company’s performance in 2021 and the development of the industry, we expect the company’s earnings per share from 2022 to 2024 to be 1.54/2.61/3.60 yuan (the original forecast diluted earnings per share from 2022 to 2023 was 2.28/3.06 / – yuan), corresponding to a price earnings ratio of 35.2/20.7/15.0 times; Maintain buy rating.
Main risks of rating
E-cigarette policy risk; The demand for new energy vehicles does not meet expectations; Strategic customer introduction fails to meet expectations; Consumer battery demand does not meet expectations; Price competition exceeds expectations; Raw material price fluctuation risk.
