After several days of delay, the performance "report card" of power battery leader Contemporary Amperex Technology Co.Limited(300750) finally came.
On the afternoon of April 29, Contemporary Amperex Technology Co.Limited(300750) ( Contemporary Amperex Technology Co.Limited(300750) ) disclosed the first quarterly report of 2022. The announcement shows that during the reporting period, the company achieved an operating revenue of 48.678 billion yuan, a year-on-year increase of 153.97%; The net profit attributable to the parent company was 1.493 billion yuan, a year-on-year decrease of 23.62%.
While the net profit fell, the operating cost of Contemporary Amperex Technology Co.Limited(300750) was rising significantly, reaching 41.627 billion yuan in the first quarter, a year-on-year increase of nearly twice. In this regard, the company announced that the core reason is the rapid rise in the price of some upstream materials.
Since this year, the prices of raw materials for power batteries have continued to soar, and the prices of battery grade lithium carbonate and battery grade lithium hydroxide have increased nearly 8 times year-on-year, seriously eroding the profit margins of middle and downstream enterprises. Therefore, in the first quarter of this year, most power battery enterprises had the situation of "increasing income without increasing profit".
Pan Helin, CO director and researcher of the digital economy and financial innovation research center of the International Joint Business School of Zhejiang University, told the securities times securities firm China reporter that at present, the downstream price growth space of new energy vehicles is limited. While the upstream raw material price increases, the profit space of midstream and downstream enterprises will be squeezed in the short term. In the long run, power battery enterprises will ease the cost pressure through the layout of upstream materials and battery recycling.
Some insiders also judged that the current price rise of upstream materials of power batteries has exceeded the rational range, and the price drop is an inevitable trend.
on April 29, Contemporary Amperex Technology Co.Limited(300750) disclosed that the company's application for issuing shares to specific objects has been approved by the CSRC. This means that the 58.2 billion fixed increase of 30075 was officially approved. The company said that all the funds raised by the issuance of shares will be used for capacity construction projects and R & D projects to meet the growing market demand, help to improve the company's competitiveness and market share, and thicken the return to shareholders
the price of raw materials disturbs the profits of enterprises, which is a short-term phenomenon
The continuous rise of sales of new energy vehicles has brought obvious "wealth making" effect to the industrial chain. On April 22, Contemporary Amperex Technology Co.Limited(300750) disclosed the annual report of 2021. The announcement showed that the operating revenue in 2021 was 130356 billion yuan, a year-on-year increase of 159%; The net profit attributable to the parent company was 15.931 billion yuan, a year-on-year increase of 185%.
The double growth of revenue and net profit stems from the continuous hot end consumption of new energy vehicles. According to the data disclosed by China Automobile Industry Association, the sales volume of Shanxi Guoxin Energy Corporation Limited(600617) vehicles in China in 2021 was 3.521 million, a year-on-year increase of 1.6 times, and the electrification rate was as high as 13.4%, a year-on-year increase of 8 percentage points. At the same time, the demand for new energy vehicles in the European and American markets also continued to rise, which further led to the rise of power battery shipments.
According to SNE research, the global power battery consumption of new energy vehicles reached 296.8gwh in 2021, with a year-on-year increase of 102.3%. Contemporary Amperex Technology Co.Limited(300750) as the leading enterprise of global power battery, also significantly benefited from the high growth trend of the industry. In 2021, the company's lithium-ion battery sales volume was 133.41gwh, with a year-on-year increase of 184.82%, of which the sales volume of power battery system was 116.71gwh, with a year-on-year increase of 162.56%.
However, while the upstream and downstream of the industrial chain are hot, the sharp rise in the price of upstream raw materials has brought great challenges to the profit growth of middle and downstream enterprises.
relevant data show that at the beginning of 2022, the price per ton of battery grade lithium carbonate and battery grade lithium hydroxide increased nearly 8 times compared with the same period of the previous year, the price per ton of spodumene and lithium hexafluorophosphate increased about 4 times, and the prices of electrolytic cobalt, 523 ternary material, lithium iron phosphate material and ternary battery electrolyte also soared several times
The statistics of China Automobile Industry Association show that the rise in the price of raw materials directly leads to the rise of the comprehensive cost of battery materials by more than 40%.
Although the price of raw materials such as lithium hexafluorophosphate has dropped recently, it still raises the cost of power battery enterprises. According to Contemporary Amperex Technology Co.Limited(300750) disclosure, in the first quarter of this year, the operating cost of the company was 41.628 billion yuan, a year-on-year increase of 198.66%, and the net cash flow from operating activities was 7.076 billion yuan, a year-on-year decrease of 35.48%.
It is reported that the increase in cost is mainly due to two factors: first, it increases with the growth of sales; Second, the price of some upstream materials increased rapidly, resulting in increased costs.
The Chinese reporter of securities times · securities firm noted that the performance of several other power battery enterprises in the first quarter of this year was similar to that of Contemporary Amperex Technology Co.Limited(300750) and showed the current situation of "increasing income without increasing profit".
Jiang Li, Secretary of Contemporary Amperex Technology Co.Limited(300750) board of directors and deputy general manager, revealed that Contemporary Amperex Technology Co.Limited(300750) has been cautious in pricing products. Therefore, in the face of upstream price increases, the company's preferred way is to bear the cost pressure by itself. However, since this year, the price rise of battery raw materials has exceeded a reasonable level, so the company has also coordinated with customers to dynamically adjust the price. At present, through a period of adjustment, the price of raw materials for power batteries will fall sooner or later.
several securities companies judge that the company's fundamentals have not changed
When the net profit and gross profit of the company are eroded, will Contemporary Amperex Technology Co.Limited(300750) 's position in the industry be shaken? It has become one of the most concerned topics in the market.
Ye Shengji, chief engineer and Deputy Secretary General of China Automobile Industry Association, judged that this round of raw material price rise not only has the factor of imbalance between supply and demand, but also has the phenomenon of speculation and price increase in some intermediate links.
In his opinion, through the active coordination of government departments and the development cycle and law of the industry itself, the price of power battery materials will gradually return to normal and rational.
According to the judgment of insiders, based on the strong downstream demand, the upstream material manufacturers of power batteries are bound to expand production and improve supply, and the price will fall accordingly.
According to the analysis of Kaiyuan securities, the prices of lithium battery materials such as lithium carbonate and electrolyte outside China will gradually loosen in 2022. In the downward cycle of raw material prices, the gross profit margin of power battery manufacturers is expected to increase.
The Chinese reporter of securities times · securities firm noted that in the past year, Contemporary Amperex Technology Co.Limited(300750) especially accelerated the layout of key upstream materials, and successively invested in the layout of mineral resources and battery material projects related to new energy industries such as lithium, nickel, cobalt and phosphorus. Meanwhile, the layout of Contemporary Amperex Technology Co.Limited(300750) in the field of battery recycling will further consolidate the company's control over battery raw material resources.
Jiang Li revealed that Contemporary Amperex Technology Co.Limited(300750) is strengthening the mining of lithium battery core minerals with partners, but the mining of mineral resources needs a certain time. In the future, with the gradual release of production capacity, the price drop is an inevitable trend. We judge that the supply of some battery materials will improve in the second half of this year.
Chen zikun, chief analyst of Gf Securities Co.Ltd(000776) power equipment and new energy industry, said that the growth rate of Contemporary Amperex Technology Co.Limited(300750) in the past three years has actually shielded industrial fluctuations. In the first quarter of this year, the company's income increase without profit increase is a short-term phenomenon, which does not change the company's long-term development and valuation level. The company's market share and customer resources are one of the most concerned indicators of investment institutions. The performance of Contemporary Amperex Technology Co.Limited(300750) in the short term comes from the release of scale effect, but in the long run, as a science and technology enterprise, the company will benefit from technological innovation.
According to the latest statistics of SNE research, a market research company, from January to March this year, Contemporary Amperex Technology Co.Limited(300750) 's power battery consumption reached 33.3gwh, accounting for 35% of the market, ranking first in the whole industry.
In terms of customer resources, Contemporary Amperex Technology Co.Limited(300750) also takes the lead in targeting the global market and has launched long-term cooperation with Tesla, BMW, Hyundai, Ford, Daimler, Great Wall Motor Company Limited(601633) , ideal, velai and other customers. Among them, Contemporary Amperex Technology Co.Limited(300750) and Tesla have finalized a four-year continuous supply agreement from 2022 to 2025. In addition, in the field of energy storage and power exchange, Contemporary Amperex Technology Co.Limited(300750) is also accelerating cooperation with enterprises in the industrial chain.
Jiang Li said that in the new energy vehicle industry, competition is everywhere. For the company, the continuous development of competitive products is the focus of Contemporary Amperex Technology Co.Limited(300750) the short-term market fluctuations will not affect the company's long-term technology research and development. Only by continuously developing valuable production capacity can the company's market share remain stable.
the annual report of 2021 disclosed by Contemporary Amperex Technology Co.Limited(300750) shows that the R & D expenses of the company during the reporting period were 7.691 billion yuan, with a year-on-year increase of 115.48%. In the first quarter of this year, Contemporary Amperex Technology Co.Limited(300750) the investment in R & D continued to rise, and the R & D expenses from January to March totaled 2.568 billion yuan, a year-on-year increase of 117.49%.
In addition, in a recent interview, when Jiang Li was asked whether the company would build cars, he clearly emphasized that car enterprises are customers and long-term partners of Contemporary Amperex Technology Co.Limited(300750) and the company will focus on its main business and carry out technological innovation and business model innovation around the power battery industry.
when will the market value of trillion return
Recently, Contemporary Amperex Technology Co.Limited(300750) share price has performed poorly. On April 26, the company's share price hit a new low in this round of adjustment, falling below the 400 yuan / share mark, and the company's market value also fell below trillion, nearly 40% lower than the high point in December last year.
April 29, Contemporary Amperex Technology Co.Limited(300750) shares closed at 409.35 yuan / share, with the latest market value of 954.1 billion yuan
As a leading enterprise in the field of power battery, Contemporary Amperex Technology Co.Limited(300750) is regarded by the market as the "wind vane" of industry change, and the fluctuation of its market value and stock price has also aroused widespread heated discussion in the industry.
Soochow Securities Co.Ltd(601555) pointed out that the company's stock price was wrongly killed due to various rumors recently, and the valuation was corrected to the bottom of history. 2022 is a big year for the global sales of electric vehicles and energy storage, and the company has sufficient orders. It is expected that the global share will further increase to 35%. The shipment volume and performance are expected to continue to double, and the current valuation is obviously underestimated. Considering the high growth of the company in 2022 and the global power battery longyi, the customer, technology and cost are all in the lead, and the long-term advantages are prominent, the company is given a certain valuation premium, 70 times PE in 2022, and the target price is 905.8 yuan.
Citic Securities Company Limited(600030) also said that the company's fundamentals are still strong. In terms of market share, the company's global and Chinese market share in 2021 were 32.6% and 52.4% respectively. It has maintained the first position in the world for five consecutive years, and the leading position is expected to be maintained. It is estimated that in 2022, the sales volume of new energy vehicles in China / around the world will be 5.5 million and 9.62 million respectively, and the corresponding power battery demand will be 286gwh and 500gwh respectively. Superimposed on the rapidly growing demand of the energy storage industry, the demand side of the industry will remain strong, the company's capacity will be released rapidly, and the breakthrough of overseas power batteries and energy storage batteries is expected to be accelerated.
As for the change of the company's share price, Jiang Li said that the short-term fluctuation is not the focus of the company, and Contemporary Amperex Technology Co.Limited(300750) pays more attention to the deep cultivation and R & D of technology.
Recently, Contemporary Amperex Technology Co.Limited(300750) intensively laid out the power exchange field and strengthened the business model innovation around power batteries Citic Securities Company Limited(600030) judge that in the field of technology, the new technical solutions successively released by the company, such as CTP, AB battery, non thermal diffusion technology, sodium ion battery, combined power exchange overall solution, will continue to lead the development of the industry.
