\u3000\u30 Jinzai Food Group Co.Ltd(003000) 35 Hunan Zhongke Electric Co.Ltd(300035) )
Overview of the annual report. In the 21st year, the company realized a revenue of RMB 2.194 billion, an increase of 125.33%, a net profit attributable to the parent company of RMB 365 million, an increase of 123.10%, and a net profit attributable to the parent company of RMB 355 million after deduction, an increase of 132.74%; In 2021q4, the company achieved a revenue of 806 million yuan, an increase of 141.69% and 42.57% respectively, and the net profit attributable to the parent company was 115 million yuan, an increase of 123.64% and 25.83% respectively. After deduction, the net profit attributable to the parent company was 110 million yuan, an increase of 127.24% and 23.47% respectively.
22q1 hit a new high in single quarter performance. In 2022q1, the revenue was 858 million yuan, up 161.60% and 6.46% respectively, the net profit attributable to parent company was 129 million yuan, up 91.25% and 12.30% respectively, and the net profit attributable to parent company after deduction was 117 million yuan, up 140.27% and 27.79% respectively. During the reporting period, the company’s non recurring profit and loss was -11 million yuan, including the accumulated cash dividend paid by the subsidiary zhongkexingcheng to Shenzhen Venture Capital new materials Fund – investment interest of about 16 million yuan.
Establish outsourcing graphitization cooperation relationship and rapidly expand negative electrode production capacity. The dual control policy of energy consumption restricts the expansion of graphitization capacity, and the rise of coal price promotes the rise of electricity price. The supply and demand of graphitization is tight for a long time. By establishing strategic cooperation with outsourcing graphitization processing manufacturers, the company locked in the outsourcing processing capacity, and realized the revenue of lithium battery negative electrode sector of RMB 192600 in 2021, with a year-on-year increase of 154.40%; The sales volume of cathode materials was 59000 tons, with a year-on-year increase of 145.46%. The company actively expanded its production capacity. At the end of the year 21, the company’s effective production capacity was 9 Shenzhen Ecobeauty Co.Ltd(000010) 0000 tons, and the production capacity of many projects under construction in Guizhou, Sichuan and Yunnan was released in an orderly manner. We expect the production capacity to exceed 250000 tons by the end of the year 22, and the annual effective production capacity was 12 Shahe Industrial Co.Ltd(000014) 0000 tons.
The self supply ratio of graphitization increased steadily, and the net profit per ton continued to rise. With the implementation of the company’s “100000 ton negative pole integration project” in Qujing, Yunnan and Gui’an new area, Guizhou, the graphitization self supply rate of the company will be significantly improved. We expect that the graphitization self supply rate of the company will reach 80% by the end of 2022, which will effectively reduce costs and improve the net profit per ton. At the same time, the outsourcing graphitization processing fee remained high, and the company transferred part of the price to the downstream. According to the calculation, the company’s 22q1 gross profit margin was 27.17%, with a ring increase of 4.91 PCTs, the net profit margin was 15.02%, with a ring increase of 0.80 PCT, and the net profit per ton was about 6000 yuan / ton, which continued to increase month on month.
Deeply bind core customers to ensure stable growth of sales. The company has excellent customer structure. At present, the company has established cooperative relations with Chinese battery enterprises such as Byd Company Limited(002594) , Contemporary Amperex Technology Co.Limited(300750) , China Innovation airlines, Eve Energy Co.Ltd(300014) , Ruipu energy, honeycomb energy, Suzhou Xingheng, SK and ATL in South Korea. In addition, the company has established joint ventures with its core customers Eve Energy Co.Ltd(300014) and signed capital increase agreements with Contemporary Amperex Technology Co.Limited(300750) to deeply bind its core customers and ensure the high growth of the company’s sales.
Investment suggestion: it is estimated that the operating revenue of the company from 2022 to 2024 will be 4.221 billion yuan, 6.764 billion yuan and 8.581 billion yuan respectively, with a year-on-year growth rate of 92.4%, 60.3% and 26.9% respectively. The net profit attributable to the parent company will be 773 million yuan, 1.294 billion yuan and 1.694 billion yuan respectively, with a year-on-year growth rate of 112%, 67% and 31% respectively. The corresponding price earnings ratio of 22-24 years on April 28 is 23, 14 and 11 times respectively, maintaining the “recommended” rating.
Risk tips: risks with high customer concentration; Price fluctuation risk of raw materials; Exchange rate fluctuation risk.
