On April 28, Jiangsu Dingsheng New Material Joint-Stock Co.Ltd(603876) ( Jiangsu Dingsheng New Material Joint-Stock Co.Ltd(603876) . SH) disclosed the results of 2021. During the reporting period, the company achieved an operating revenue of 18.168 billion yuan, a year-on-year increase of 46.2%; The net profit attributable to the parent company was 430 million yuan, with a year-on-year increase of 296807%%, turning losses into profits. On the same day, the company also announced the results of the first quarter of 2022, which showed that the operation was accelerated again from January to March this year, and the net profit attributable to the parent company was 215 million yuan, a significant year-on-year increase of 387.45%.
The annual report shows that in 2021, despite the pressure from the uncertainty of the external macro environment, Jiangsu Dingsheng New Material Joint-Stock Co.Ltd(603876) still adhered to the corporate vision of building a world-class new energy materials company, overcame the adverse impact of the rapid growth of the demand side but the slow growth of the supply side of battery aluminum foil, focused on innovation and design capacity, significantly improved production efficiency and achieved performance growth.
Guotai Junan Securities Co.Ltd(601211) research report points out that at present, the demand growth of aluminum foil in building decoration, household appliances and other fields tends to be stable, and the demand for aluminum foil for lithium battery is growing rapidly. According to the installed capacity of overseas power batteries and the installed capacity of China Shipbuilding Industry Group Power Co.Ltd(600482) batteries, the compound growth rate of the demand for aluminum foil for power batteries from 2020 to 2025 will reach 54.25%, with a broad growth space in the future.
It is understood that Jiangsu Dingsheng New Material Joint-Stock Co.Ltd(603876) closely following the heat of the global new energy vehicle market, seizing the opportunity of the growth of power battery demand, increasing R & D investment and deeply cultivating the technological advantages of enterprises, as a subdivision leader in the field of aluminum foil deep processing, has the potential to accelerate the release of production capacity and prolong the development cycle. At present, the thinnest aluminum foil produced by the company has reached 9 μ m. In industry 12 μ M is in the leading level when it is more common.
During the reporting period, Jiangsu Dingsheng New Material Joint-Stock Co.Ltd(603876) on the one hand, focusing on the efficient operation of the established R & D institutions such as Jiangsu enterprise technology center and Zhenjiang high-precision aluminum foil Research Institute, the profitability of battery aluminum foil business increased steadily and became the main profit growth point of the company. On the other hand, the company has established five production bases in the world and has become the largest manufacturer of lithium battery aluminum foil in the world. By the end of 2021, the company’s battery foil products have a production capacity of 94000 tons / year, and it is expected to have a mass production capacity of 150000 tons of lithium battery aluminum foil this year Tianfeng Securities Co.Ltd(601162) believes that with the growth of battery aluminum foil shipments, the high margin battery aluminum foil business will significantly improve the company’s profit structure.
According to the annual report, with its leading technical strength, Jiangsu Dingsheng New Material Joint-Stock Co.Ltd(603876) has accumulated a number of high-quality customer resources, including Contemporary Amperex Technology Co.Limited(300750) , Byd Company Limited(002594) , Gotion High-Tech Co.Ltd(002074) , AVIC lithium battery, Lishen battery, ski, LG new energy and other battery manufacturers, which are rarely replaced after being certified by the aluminum foil factory. Stable mainstream customers effectively help the company accumulate production experience, improve equipment delivery speed and stabilize mass production.
It is worth mentioning that Jiangsu Dingsheng New Material Joint-Stock Co.Ltd(603876) and Contemporary Amperex Technology Co.Limited(300750) signed a framework cooperation agreement in December 2021, which agreed that the minimum supply of aluminum foil for power battery within four years was 512000 tons. This not only reflects Contemporary Amperex Technology Co.Limited(300750) ‘s recognition of the company’s aluminum foil quality and technology, but also effectively ensures the company’s shipments in the next few years and contributes to the future growth curve.
Market participants believe that the transformation of production deployment, the landing of R & D strength and the expansion of customer structure all reveal the growth potential of Jiangsu Dingsheng New Material Joint-Stock Co.Ltd(603876) to the outside world. As an industry leader, with the rapid and large-scale production of lithium batteries in the future, the company’s production capacity is expected to continue to climb.
