\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 711 Chengtun Mining Group Co.Ltd(600711) )
Core view
The company released the annual report of 2021: the revenue was 45.237 billion yuan, a year-on-year increase of + 15.29%; The net profit attributable to the parent company was 1.031 billion yuan, a year-on-year increase of + 164562%; The net profit deducted from non parent company was 651 million yuan, a year-on-year increase of + 378.03%. Among them, the difference between the net profit attributable to the parent company and the net profit deducted from non attributable to the parent company is mainly due to the fact that the investment income generated by the company's investment in Xtc New Energy Materials(Xiamen) Co.Ltd(688778) shares is included in non recurring profits and losses. In 2021, the company produced 39400 metal tons of nickel metal, 40500 metal tons of copper, 10500 metal tons of cobalt products, 244300 metal tons of zinc products and 6.4 metal tons of germanium products. The actual output of core projects even exceeded the original design capacity.
The company released the first quarter report of 2022: the revenue was 6.226 billion yuan, a year-on-year increase of - 45.84%; The net profit attributable to the parent company was 375 million yuan, a year-on-year increase of - 9.98%; The net profit deducted from non parent company was about 452 million yuan, a year-on-year increase of + 7.22%. The company's revenue scale decreased significantly year-on-year, mainly due to the company's proposal in 2021: in order to further focus on the production of new energy metals and materials, the company decided to strategically reduce its trading business in the next three years.
Focusing on energy metals, the integrated layout of lithium battery new energy materials industry chain has begun to take shape
The company's core development strategy is to "control resources at the top and expand materials at the bottom", mainly focusing on the resource and mineral countries Congo (DRC) and Indonesia, lock mineral resources in the mineral countries, and provide sufficient raw material guarantee for the integrated layout of China's lithium battery new energy materials industry chain. At present, the CCR copper cobalt project in the Democratic Republic of the Congo has an annual production capacity of 40000 tons of copper and 3500 tons of cobalt, maintaining full production; The CCM project with an annual output of 30000 tons of copper and 5800 tons of cobalt has been put into trial operation at the end of 2021; In addition, the construction of the mining and smelting integration project with an annual output of 30000 tons of copper and 3600 tons of cobalt in nzulikalongwei mine has been carried out in an orderly manner, and is expected to be completed and put into operation by the end of this year. The annual output of 34000 tons of nickel metal project of Youshan nickel industry in Indonesia has reached full capacity, and the actual annual output can reach 40000 tons of nickel metal; In addition, the company will focus on the construction of Shengmai nickel smelting project with an annual output of 40000 tons of nickel metal and nickel resources this year.
Industrial chain extension: the company has Zhuhai kelixin, a cobalt deep-processing enterprise in China, with an annual production capacity of 4500 metal tons. Kelixin completed technical transformation last year and developed high-end 3C precursor tetracobalt products. Last year, the company also launched a Guizhou project, which plans to invest in the construction of a new energy material project with an annual output of 300000 tons of battery grade nickel sulfate, 300000 tons of battery grade iron phosphate and 10000 tons of metal battery grade cobalt products in Fuquan City, Qiannan Prefecture, Guizhou Province. Phase 1 of the project will build a front-end high nickel matte production line and a nickel sulfate production line of 30000 tons of metal nickel, which will be completed and put into operation in the first half of 2023. The company will also deepen cooperation with downstream manufacturers and implement ternary precursor projects.
Risk warning: the production, sales and selling price of the company's core products are lower than expected; The company's production expansion progress is lower than expected.
Investment advice: maintain the "buy" rating.
Slightly raise the profit forecast for 2022. It is estimated that the company's revenue from 2022 to 2024 will be 30.578/34.405/40.749 billion yuan, with a year-on-year growth rate of - 32.4% / 12.5% / 18.4%, and the net profit attributable to the parent company will be 19.09/30.88/4.255 billion yuan, with a year-on-year growth rate of 85.1% / 61.8% / 37.8%; Diluted EPS is 0.68/1.09/1.51 yuan, and the current share price corresponds to PE of 10 / 6 / 4x. Considering that the company has gradually entered the payback period in the layout of new energy industry chain in the early stage, with a deep focus on the production of energy metals and materials, the integrated layout of lithium battery new energy material industry chain is beginning to take shape, and there is still huge growth space in the future, so it will maintain the "buy" rating.
