\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 48 Jl Mag Rare-Earth Co.Ltd(300748) )
Event: on April 27, 2022, the company released the first quarterly report of 2022. In Q1, 2022, the company realized an operating revenue of 1.51 billion yuan, a year-on-year increase of + 90.2%, a month on month increase of + 29.8%, and a net profit attributable to the parent company of 164 million yuan, a year-on-year increase of + 61.6%, a month on month increase of + 61.2%; The net profit deducted from non parent company was 152 million yuan, a year-on-year increase of + 67.2% and a month on month increase of + 63.3%; The increase of the company's profitability is mainly due to the increase of the production and sales volume and unit price of NdFeB magnetic steel. In terms of profitability, Q1's gross profit margin was 19.4%, mom -1.9pct, net profit margin was 10.9%, mom + 2.1%, period expense rate (including R & D expenses) was 7.1%, mom -4.8pct. The decline of gross profit margin was mainly due to the sharp increase of sales unit price, and the decline of period expense rate was mainly due to the sharp decrease of financial expenses. Generally speaking, Q1's net profit margin recovered.
Significant improvement in new energy production capacity and new wind power market. In Q1 2022, the company's revenue in the field of new energy vehicles and auto parts reached 450 million yuan, a year-on-year increase of + 256.9%, accounting for 30%, an increase of 4.0 PCT, corresponding to about 487000 new energy passenger vehicles; The revenue of energy-saving variable frequency air conditioning reached 403 million yuan, a year-on-year increase of + 12.7%, accounting for 27%; The revenue in the field of wind power generation reached 282 million yuan, a year-on-year increase of + 46.1%, accounting for 19%. At the same time, the company has increased large-scale mass production in 3C field, and its operating revenue in industrial energy-saving motors, energy-saving elevators and other fields has also increased significantly.
The price increase of raw materials in Q1 period alleviates the pressure of price increase of raw materials in Q1 period.
1) production volume: in 2022, the finished product output of Q1 magnetic steel was 2755 tons, of which the output of grain boundary infiltration products was 1845 tons, a year-on-year increase of + 42.7%, accounting for 67.0% of the total product output of the company in the same period, a year-on-year increase of + 16pct. The output was converted to about 11000 tons in the whole year (10300 tons in 2020). The increase was mainly from the climbing production of Baotou phase I 8000 tons project, and the output of Q2 is expected to continue to increase;
2) price: as the sales volume is not disclosed, according to the calculation of output, the single ton price of magnetic steel of Q1 company in 2022 will reach 548000 yuan / ton, which is + 167000 yuan / ton compared with that of 2021, and the gross profit per ton is 106000 yuan / ton, which is + 21000 yuan / ton compared with that of 2021; In the first quarter, the price of rare earth showed a trend of rising first and then falling. The average price of praseodymium, neodymium and terbium increased significantly by 31.3% / 30.5% month on month to 1.24 million yuan / ton and 17.59 million yuan / ton. The average price of neodymium, iron and boron increased by about 20% in the market, which greatly alleviated the pressure of rising prices of raw materials; After an interview with the Ministry of industry and information technology in early March, the price of rare earths fell significantly, and has now fallen to the level at the end of 2021, alleviating the cost pressure of magnetic material manufacturers to a certain extent.
Investment suggestion: the company continues to cultivate high-performance NdFeB magnetic materials. At present, the production capacity planning of 40000 tons has been fully clarified. It is estimated that the company's revenue from 2022 to 2024 will be 6.137, 7.996 and 10.658 billion yuan respectively, and the net profit will be 633, 913 and 1.263 billion yuan, EPS will be 0.76, 1.09 and 1.51 yuan / share, and the corresponding PE will be 32.2, 22.3 and 16.1 times respectively, maintaining the "buy" rating of the company.
Risk tips: risk of price rise of rare earth raw materials; The downstream demand is lower than the expected risk; Risks of major changes in the technical route; There is a risk that the production capacity falls short of expectations.
