\u3000\u3 China Vanke Co.Ltd(000002) 176 Jiangxi Special Electric Motor Co.Ltd(002176) )
Event overview
On April 29, the company released its annual report for 2021. During the reporting period, the company achieved an operating revenue of 2.982 billion yuan, a year-on-year increase of 61.73%; The net profit attributable to the shareholders of the listed company was 386 million yuan, a year-on-year increase of 259271%; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 363 million yuan, turning losses into profits year-on-year. On April 29, the company released the first quarter report of 2022. During the reporting period, the company realized an operating revenue of 1.355 billion yuan, a year-on-year increase of 152.57%; The net profit attributable to shareholders of listed companies was 666 million yuan, an increase of 809.81% year-on-year; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 664 million yuan, with a year-on-year increase of 109992%.
Analysis and judgment:
There are abundant reserves of lithium mica resources, and subsequent planning and orderly development
Since 2010, the company has successively acquired several lithium resources. According to the company's announcement, at present, the company has 2 mining rights and 5 exploration rights of lithium porcelain ore in Yichun Area. The total lithium ore resources held or controlled by the company are more than 100 million tons, with large resource reserves. According to the company's announcement, the company has a lithium mica mining capacity of about 1.8 million tons / year, including about 1.2 million tons / year in shiziling and about Shanghai Pudong Development Bank Co.Ltd(600000) tons / year in Xinfang tantalum niobium mine. The supporting lithium mica beneficiation scale is 1.2 million tons / year, including Shanghai Pudong Development Bank Co.Ltd(600000) tons / year beneficiation capacity of Yifeng shiziling mining area and Shanghai Pudong Development Bank Co.Ltd(600000) tons / year beneficiation capacity of Taichang mining area. According to the company's announcement plan, (1) short term: we should speed up the "exploration to mining" progress of Xikeng and form the planned mining capacity; Expand the output of shiziling; Continuously improve the lithium extraction rate in the whole process from raw ore to lithium salt. (2) Medium term: accelerate the "exploration to mining" of four exploration rights except Xikeng (pailou lithium bearing porcelain stone mine in Yifeng County, Meijia lithium bearing porcelain stone mine in Yifeng County, baishuidong in Yifeng County - yeweiling in Fengxin County and pingtouling tantalum niobium mine in Fengxin County). Taking full advantage of its own lithium resources, the company can effectively ensure the supply of main raw materials for the preparation of lithium carbonate through the comprehensive application of lithium mining and beneficiation and the deep processing of lithium mica. At the same time, the company can effectively reduce the production cost and improve the market competitiveness of the company's lithium carbonate products through large-scale production.
Give play to the advantages of lithium mica resources and steadily increase the lithium salt production capacity
According to the company's announcement, the company currently has two lithium mica production lines for preparing lithium carbonate, with a total annual capacity of 15000 tons, which are mainly processed into lithium carbonate products by using the lithium mica materials and purchased auxiliary materials purchased by the company. In addition, the company also has a production line with an annual capacity of 15000 tons for preparing lithium carbonate from spodumene, a production line with an annual capacity of 10000 tons of lithium hydroxide and 5000 tons of lithium carbonate under construction, which are processed into lithium carbonate products by using purchased spodumene concentrate and auxiliary materials. According to the announcement of the company, the compatible transformation of spodumene lithium extraction production line should be completed before the second quarter of 2022, so that it can not only extract lithium from spodumene, but also extract lithium from lepidolite, expand the production and sales of lithium carbonate products and enhance the profitability of the company. On April 8, 2022, the company announced that in order to undertake and support the development and planning of the "Xikeng exploration to mining" project, it plans to invest in a new lithium ore mining and dressing project with an annual output of 3 million tons and a lithium salt project with an annual output of 20000 tons with the wholly-owned subsidiary jiangte mining, with a total investment of about 2 billion yuan. After the completion of the project, the company's lithium salt production capacity will be further expanded to 65000 tons / year, which will also help the company give full play to its own resource advantages and improve the company's competitiveness in the lithium salt market.
In 2021, the performance improved significantly, and the future growth can be expected.
In 2021, the company achieved an operating revenue of 2.982 billion yuan, a year-on-year increase of 61.73%; The net profit attributable to shareholders of listed companies was 386 million yuan, a year-on-year increase of 259271%. The substantial increase in revenue was mainly due to the continuous improvement of the external environment of lithium salt business during the reporting period, the increase in the downstream demand of lithium carbonate products, and the significant increase in its sales price year-on-year. Through the release and expansion of lithium mica mining and processing and lithium carbonate production capacity, the production, sales and revenue of the company's lithium carbonate products increased significantly compared with the same period of the previous year. The increase in profit was mainly due to the rise in the price of mining and beneficiation chemicals and the sharp increase in gross profit. In 2022q1, the company achieved an operating revenue of 1.355 billion yuan, a year-on-year increase of 152.57%; The net profit attributable to the shareholders of the listed company was 666 million yuan, a year-on-year increase of 809.81%. The substantial increase in revenue was mainly due to the simultaneous rise in the volume and price of the company's mining and beneficiation chemicals. At the same time, the price of mining and beneficiation chemicals increased, and the increase in gross profit helped the sharp rise in profits. Subsequently, the company's lithium salt production capacity is released, and the output is expected to continue to grow steadily. At that time, the performance of the lithium salt business is expected to continue to rise under the background of the high prosperity of the lithium salt industry, and the company's future performance growth can be expected.
Investment advice
At present, the company mainly develops the two main businesses of lithium sector and motor sector. While rapidly expanding lithium business, the company actively expands motor business. In 2022, with the development of new energy vehicles, consumer electronics and energy storage industries, the demand for lithium salt maintained rapid growth, and the global new supply did not increase significantly. It is expected that the price of lithium resources will continue to rise. At present, the company has 1.2 million T / a lithium mica beneficiation capacity, 15000 T / a lithium mica preparation capacity and 15000 T / a lithium mica preparation capacity, totaling 30000 T / a lithium salt capacity. With the implementation of subsequent mining and beneficiation projects and the continuous operation of lithium salt projects in hand, the lithium sector will bring greater performance growth to the company. The company is a leading enterprise in many market segments of China's small and medium-sized motor industry. With the company's motor sector actively expanding new markets, the motor sector will provide guarantee for the stable growth of the company's performance. We estimate that the operating revenue of the company from 2022 to 2024 will be RMB 7.484/10.685/12.268 billion respectively, with a year-on-year increase of 150.9% / 42.8% / 14.8%; The net profit attributable to the parent company was 3.416 billion yuan / 5.023 billion yuan / 5.470 billion yuan, an increase of 785.4% / 47.0% / 8.9% respectively; EPS is 2.00/2.94/3.21 yuan per share, corresponding to the closing price of 19.47 yuan on April 28, 2022, and PE is 9.73/6.61/6.07 times respectively. For the first time, give a "buy" rating.
Risk tips
1. The price of lithium salt decreased significantly;
2. Lithium salt business construction is less than expected;
3. The construction of Xikeng project was not as expected.
