\u3000\u30 Jinzai Food Group Co.Ltd(003000) 14 Eve Energy Co.Ltd(300014) )
Event:
Eve Energy Co.Ltd(300014) released 2021 annual report: the company achieved revenue of 16.9 billion yuan in 2021, a year-on-year increase of + 107.06%; The net profit attributable to the parent company was 2.906 billion, a year-on-year increase of + 75.89%; Deduct 2.547 billion non return to parent, a year-on-year increase of + 66.96%; The gross profit margin was 21.57%, with a year-on-year increase of -7.44pct. Among them, Q4 achieved a revenue of 5.452 billion yuan, a year-on-year increase of + 93.19% and a month on month increase of + 11.54%; The net profit attributable to the parent company was 690 million yuan, with a year-on-year increase of – 2.25% and a month on month increase of – 4.31%. The gross profit margin was 17.11%, with a year-on-year ratio of -10.56pct and a month on month ratio of -4.44pct. The performance in 2021 was in line with expectations, and the decline in gross profit margin was mainly due to the increase in the proportion of power energy storage battery revenue and the high price of raw materials.
Eve Energy Co.Ltd(300014) released the first quarterly report of 2022: in 2022q1, the revenue reached 6.734 billion yuan, a year-on-year increase of + 127.69% and a month on month increase of + 23.51%; Q1 smore’s profit before adjustment was 527 million yuan, contributing 167 million yuan of investment income to Yiwei. Excluding SIMORE, the company’s 2022q1 headquarters business realized a net profit attributable to the parent company of 355 million yuan, a month on month increase of + 13.11%. The performance in the first quarter of 2022 slightly exceeded expectations, mainly due to the upstream raw material layout and product price rise.
Key investment points:
The revenue of power battery exceeded 100, driving the high growth of performance. In 2021, the revenue of power battery was 10.001 billion yuan, with a year-on-year increase of 146.25%. The high performance was mainly due to the continuous release of soft pack ternary battery. With the continuous release of new production capacity, the scale of battery shipment maintained growth. The revenue of consumer batteries was 6.876 billion yuan, a year-on-year increase of + 67.79%, which was mainly due to the increase of the production capacity of ternary cylindrical batteries, and the dilemma of short supply was slightly alleviated; In addition, the economic recovery outside China and the improvement of consumer battery demand have driven the improvement of performance.
The upstream closed loop is formed, and the profit turning point is coming. The company continues to promote in-depth strategic cooperation with upstream companies. At present, it has cooperated with Shenzhen Dynanonic Co.Ltd(300769) (lithium iron phosphate), Zhejiang Huayou Cobalt Co.Ltd(603799) (nickel cobalt), Yunnan Energy New Material Co.Ltd(002812) (diaphragm), Hunan Zhongke Electric Co.Ltd(300035) (cathode material), Shenzhen Capchem Technology.Ltd(300037) (electrolyte), jinkunlun (lithium carbonate and lithium hydroxide) to realize the layout of the whole industrial chain, which can reduce the procurement cost and transportation cost of raw materials. 2022q1’s performance exceeded expectations, mainly due to the stability of the upstream supply chain. It is expected that the cooperative production capacity will be put into operation in the second half of 2022, with prominent cost advantages and a profit turning point.
Reduce the holdings of SIMORE, change the use of funds for raised investment projects, and further expand the third phase of production power. The company currently holds 31.64% of the shares of SIMORE. In order to focus on its main business and supplement funds, the company will reduce its holdings of SIMORE by 3.5%. The company will also change the purpose of the last round of fixed increase funds raised for the implementation of “TWS bean type lithium ion battery project” and “high temperature lithium manganese battery project for tire pressure test and Internet of things application”, and invest in Yiwei power “passenger vehicle power battery project (phase III)”. This round of investment scale is 1.943 billion yuan, and the main direction is iron lithium battery. The funds and the funds obtained from the reduction of SIMORE’s holdings are expected to fully alleviate the capital pressure of Yiwei power and significantly reduce the possibility of spin off.
Profit forecast and investment rating: the company benefits from the high penetration rate of new energy vehicles, which drives the rapid growth of power battery demand, the gradual increase of energy storage space, and the recovery of consumer battery demand. With the expansion of production capacity, the upstream production capacity also helps to enhance the profitability of the company. It is estimated that the operating revenue of the company from 2022 to 2023 to 2024 will be 29.769 billion yuan 56.113 billion yuan 81.969 billion yuan, and the net profit attributable to the parent company will be 2.875 billion yuan 6.187 billion yuan 9.079 billion yuan. The current stock price corresponds to PE of 43.49x 20.21x 13.77x, which is rated as “buy”.
Risk tips: the capacity expansion is less than expected, the sales volume of new energy vehicles is less than expected, the price of raw materials continues to rise, the production speed of new products is less than expected, and the price competition in the industry is intensified.
