\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 110 Nuode Investment Co.Ltd(600110) )
Event: Nuode Investment Co.Ltd(600110) disclosed that in the first quarter report of 2022, the company achieved an operating revenue of 1.112 billion yuan in 2022q1, an increase of 25.0% year-on-year and a decrease of 8.09% month on month; The net profit attributable to the parent company was 127 million yuan, an increase of 94.05% year-on-year and 51.97% month on month; Deduct non net profit of 110 million yuan, an increase of 80.45% year-on-year and 38.68% month on month.
The volume and price of the company’s products rose simultaneously, and the performance met expectations. In 202q1, the company realized an operating revenue of 1.112 billion yuan, a year-on-year increase of 25.0%; Due to seasonal factors such as the Spring Festival, the revenue decreased by 8.09% month on month. Benefiting from the high prosperity of downstream lithium battery, the processing fee of copper foil industry increased by 5 Tcl Technology Group Corporation(000100) 00 yuan / ton in 21 years. In 2022q1, the company achieved a gross profit of 265 million yuan, a year-on-year increase of 37.38% and a month on month decrease of 14.16%.
Pay attention to R & D, and the cost rate decreased significantly during the period. During 2022q1, the company’s expenses increased by 5.11% year-on-year to 126 million yuan, and the expense rate decreased by 2.14 PCTs year-on-year from 13.47% to 11.33%. Specifically, the sales expense decreased by 30.91% year-on-year to 07 million yuan, and the sales expense rate decreased by 0.48 PCTs year-on-year from 1.08% to 0.60%; The management expense decreased by 6.04% year-on-year to 35 million yuan, and the management expense rate decreased by 1.03 PCTs year-on-year from 4.14% to 3.11%; The financial expenses decreased by 29.4% year-on-year to 42 million yuan, and the financial expense rate decreased by 2.92 PCTs year-on-year from 6.71% to 3.79%; R & D expenses increased by 21.36% year-on-year to 43 million yuan, and the R & D expense rate increased by 2.29 PCTs year-on-year from 1.54% → 3.83%.
The company has accelerated its production expansion process and formed a stable supply relationship with high-quality customers. At present, the company has two copper foil bases in Qinghai and Huizhou, with a total capacity of 43000 tons. The capacity under construction in Qinghai base is 15000 tons; The 12000 ton new production capacity of Huizhou base has been debugged and mass production has begun. In addition, the company plans to build another 15000 ton copper foil project in Qinghai base; Huangshi phase I 50000 ton project is expected to be put into operation in mid-2023, and the production capacity will reach 135000 tons after completion. We expect the company’s production capacity to reach 70000 / 120000 tons by the end of 2022 / 2023. From the perspective of customer structure, relying on its technical advantages, the company has maintained stable cooperation with Contemporary Amperex Technology Co.Limited(300750) (catl), Byd Company Limited(002594) , China Innovation Airlines (former AVIC lithium battery), Gotion High-Tech Co.Ltd(002074) , Eve Energy Co.Ltd(300014) and Farasis Energy (Gan Zhou) Co.Ltd(688567) and other customers in the Chinese market. At the same time, it also supplies bulk goods to overseas customers such as LG Chemical, Panasonic, ATL and ski.
The company plans to repurchase shares to demonstrate its development confidence. On April 25, the company announced that it planned to use its own funds or self raised funds to repurchase some shares of the company for the implementation of equity incentive or employee stock ownership plan. The scale of repurchase funds shall not be less than 100 million yuan, not more than 150 million yuan, the repurchase price shall not exceed 11 yuan / share, and the shares that can be repurchased range from 9.091 million shares to 13.634 million shares, accounting for about 0.52% – 0.78% of the total share capital of the company.
The company’s large-scale production is imminent, and its performance has entered a period of high growth. We assume that the processing fee will remain unchanged from 2026 to 2025 μ The processing cost of M is 7 / 5 / 40000 yuan / ton respectively. Affected by the epidemic, the company’s copper foil output is expected to be 5.5/8.0112000 tons from 2022 to 2024, corresponding to the company’s net profit of 807, 1151 and 1553 million yuan in 2022, 2023 and 2024 respectively. According to the market value of RMB 15.1 billion on April 27, the corresponding PE of the company from 2022 to 2024 is 19, 13 and 10x respectively. Maintain the company’s “buy” rating.
Risk warning event: the construction progress of the project is less than expected; The risk of industrial policy fluctuation; The sales volume of new energy vehicles is lower than expected; The release of industrial capacity exceeded expectations; Epidemic risk; Significant upward risk of raw materials; Downside risk of processing fee.
