\u3000\u3 China Vanke Co.Ltd(000002) 192 Youngy Co.Ltd(002192) )
Events: (1) the company released its 2021 annual report. In 2021, the operating revenue was 920 million yuan, a year-on-year increase of 136.09%, including 376 million yuan in 2021q4, a year-on-year increase of 87.45% and a month on month increase of 78.98%. In 2021, the net profit attributable to the parent company was 68 million yuan, with a year-on-year increase of 224.49%, of which the net profit attributable to the parent company in 2021q4 was 41 million yuan, with a year-on-year increase of 138.00% and a month on month increase of 186.08%. In 2021, the net profit not attributable to the parent company was deducted by 63 million yuan, a year-on-year increase of 341.66%, of which the net profit not attributable to the parent company was deducted by 39 million yuan in 2021q4, a year-on-year increase of 180.07% and a month on month increase of 200.62%. (2) The company released the first quarterly report of 2022. The operating revenue of 2022q1 was 478 million yuan, with a year-on-year increase of 399.46% and a month on month increase of 27.24%. The net profit attributable to the parent company in 2022q1 was 254 million yuan, with a year-on-year increase of 1399626% and a month on month increase of 516.49%. The net profit attributable to Q1 increased by 548707% year-on-year and 202207% year-on-year
In 2021, due to the shutdown and reduction of lithium mining and beneficiation business, the single ton income and gross profit increased significantly. (1) Volume: the production and sales of lithium ore in 2021 were 44000 tons and 48000 tons respectively, with a year-on-year decrease of – 24.6% and – 32.17%. The production of lithium ore mining and beneficiation decreased year-on-year, mainly due to the superposition of epidemic situation and unified shutdown of environmental protection treatment in 2021. (2) Price: in 2021, the sales volume of lithium concentrate was 277 million yuan. After offsetting the unrealized internal transaction profits with associated enterprises, the revenue of lithium concentrate was 175 million yuan, with an average price of 5772 yuan / ton, an increase of 109% year-on-year. The annual average price of SMM lithium concentrate was 915 dollars / ton, about 5947 yuan / ton, mainly because the company’s lithium ore grade was not dry weight and the grade was 6% of standard products, which had a certain discount. (3) In 2021, the cost and gross profit per ton are about 2164 yuan / ton and 3609 yuan / ton. (4) At the end of the winter break period, lithium ore is gradually released: 24600 tons of stripping have been completed and 27000 tons of raw ore have been mined in the mine of 2022q1 company; The concentrator has completed a total beneficiation capacity of 23600 tons, produced 4155 tons of lithium concentrate and sold about 3000 tons of lithium concentrate. After offsetting the unrealized internal transaction profits with associated enterprises, the reported lithium concentrate income is about 17.73 million yuan, a year-on-year increase of 30.96%.
Lithium salt business volume and price increased simultaneously, contributing part of the profits. (1) Volume: the company holds 80% equity of long Hehua lithium, and its capacity of battery grade lithium carbonate and lithium hydroxide is 3000 / 1800 tons in turn. In 2021, the lithium salt business produced and processed about 3564 tons of battery grade lithium salt and sold 4433 tons (including 971 tons of trade), with a year-on-year increase of 81.4% and 110%. By the end of 2021, the lithium salt inventory was 296 tons. (2) Price: in 2021, the revenue per ton, cost per ton and gross profit per ton of lithium salt were 10 / 8.614000 yuan / ton, with a year-on-year increase of 176.8%, 138.3% and 8068%. (3) Continuous volume of 2022q1 lithium salt business: 2022q1 lithium salt business has produced and processed about 1000 tons of battery grade lithium salt products, sold about 1300 tons of lithium salt products (including 436 tons of trade products), and achieved an operating revenue of 382 million yuan, a year-on-year increase of 477.02%
The company cooperates closely with Byd Company Limited(002594) on lithium salt, lithium concentrate and battery equipment. In 2021, the company expects to sell 820 million yuan of lithium salt and lithium battery equipment products to Byd Company Limited(002594) and the actual sales is 443 million yuan. In 2022, the company expects to sell 1 billion yuan of lithium salt and lithium battery equipment to Byd Company Limited(002594) and.
Relying on methylka lithium ore, the beneficiation capacity may be greatly improved. The No. 134 vein of methylkalibyroxene mine owned by the company is a pegmatite type spodumene deposit with large resource reserves and the best mining conditions in China. The mine has 28.995 million tons of ore resource reserves, with an average grade of more than 1.42%. At present, it has formed an open-pit mining capacity of 1.05 million tons / year and a beneficiation capacity of 450000 tons / year of ore processing. The full output of concentrate is about 70 Faw Jiefang Group Co.Ltd(000800) 00 tons / year, and another 2.5 million tons / year lithium ore concentration project is under promotion, At that time, the annual supply of lithium concentrate will be about 470000 tons, which will become the largest spodumene ore concentration project in China.
Equity smelting capacity or continuous volume. At present, the company has a smelting capacity of 4800 tons of changhehua lithium. At the same time, Chengdu Rongjie lithium industry, a lithium salt enterprise with a shareholding of 40%, has a planned capacity of 40000 tons / year. In 2021, the construction of Chengdu Rongjie lithium industry phase I 20000 tons / year lithium salt project has been completed and reached the production capacity in March 2022. In 2022, Chengdu Rongjie lithium industry produced 3100 tons of lithium salt products, sold more than 2400 tons of lithium salt products, and the investment income in Q1 was 206 million yuan, Mainly due to the substantial increase in profits of Chengdu Rongjie.
Investment suggestion: we expect the company’s operating income to be RMB 3.351 billion, RMB 4.352 billion and RMB 5.716 billion respectively from 2022 to 2024, and its net profit to be RMB 1.825 billion, RMB 2.413 billion and RMB 3.413 billion respectively, corresponding to EPS of RMB 7.03, RMB 9.24 and RMB 13.14 per share respectively. At present, the corresponding share price of PE is 13.5, 10.3 and 7.2 times. The first rating is “Buy-A”, and the six-month target price is 114 yuan / share.
Risk tip: the demand is less than expected, the lithium price fluctuates sharply, and the project progress is less than expected
