\u3000\u30 Jinzai Food Group Co.Ltd(003000) 14 Eve Energy Co.Ltd(300014) )
It has been growing steadily in the past 21 years, and the rise in the price of raw materials affects profitability. On April 26, the company released its annual report for 2021, which achieved a revenue of 16.9 billion yuan, an increase of 107% at the same time; The net profit attributable to the parent company is 2.91 billion yuan, and the net profit of SIMORE international in 21 years is 5.29 billion yuan. The investment income recognized according to the 32% shareholding ratio is about 1.67 billion yuan, an increase of 76% at the same time. The net profit attributable to the parent company of the Department is 1.23 billion yuan, an increase of about 30% at the same time; The net profit attributable to the parent company after deducting non profits was 2.55 billion yuan, an increase of 67% at the same time. The gross profit margin was 21.6%, down 7.4pcts; The net interest rate was 18.6%, down 2.0 PCTs. During the period, the expense rate was 14.2%, with a decrease of 1.0pct. The expense rates of sales, management, finance and R & D were 2.3%, 3.4%, 0.8% and 7.8% respectively, with year-on-year changes of – 0.5pct, + 0.1pct, + 0.1pct and – 0.6pct. The management expense includes 79 million equity incentive. In terms of segments, the revenue of consumer batteries was 6.88 billion yuan, an increase of 67.8% at the same time; The revenue of power battery was 10 billion yuan, an increase of 146%. In the whole year, 1.24 billion batteries were sold, an increase of 51% at the same time, and 1.31 billion batteries were produced, including 520 million lithium primary batteries and 790 million lithium-ion batteries. The rising cost of raw materials has led to an increase in the proportion of raw materials from 77% in 20 years to 83% in 21 years.
22q1 performance is under pressure, and the decline of performance of SIMORE International + the rise of raw materials have a great impact. On April 28, the company released the first quarterly report of 2022. In 22q1, the company achieved a revenue of 6.73 billion yuan, an increase of 127.7% and a ring increase of 23.5%, and the net profit attributable to the parent company was 520 million yuan, a decrease of 19.4% and a ring decrease of 24.5%, of which the net profit attributable to the parent company after deduction was 440 million yuan, a decrease of 29.2% and a ring increase of 4.3%. Affected by the epidemic + rising R & D expenses, smore international contributed 170180 million profits, and the profit attributable to the parent company was about 340 million yuan. Due to the need of lithium battery capacity expansion, the company plans to reduce its holdings by no more than 3.5% of smore International’s shares.
The price transmission sees a profit inflection point, and the iron lithium + big cylinder continues to expand production. The company 22q1 has reached a price linkage mechanism of cost plus with customers, and is expected to see a profit inflection point. The production capacity is expanding steadily. We expect to ship 33gwh in 22 years and 58gwh in 23 years. 1) in Jingmen, Hubei Province, the company signed the strategic investment agreement with Jingmen Municipal People’s government. The company and its subsidiaries plan to build the Jingmen power storage battery industrial park project with an annual output of 153gwh in Jingmen City. At present, the projects are being implemented successively, including 20gwh large cylinder battery capacity; 2) Huizhou, construction of passenger car lithium ion power battery project and xhev battery system project; 3) Chengdu will build a 50gwh / a power storage battery production base and Chengdu Research Institute in two phases. 4) In terms of consumption, the ternary column has more than doubled its production capacity and was put into operation in April this year.
The cooperative expansion of supply chain will be completed in the second half of the year, and the cost pressure will be relieved. The company deeply binds many upstream enterprises and locks in demand through joint ventures and long orders, including Shenzhen Dynanonic Co.Ltd(300769) (LFP), beiteri (high nickel cathode), Yunnan Energy New Material Co.Ltd(002812) (diaphragm), Hunan Zhongke Electric Co.Ltd(300035) (cathode), Shenzhen Capchem Technology.Ltd(300037) (electrolyte), etc.
Investment suggestion: it is estimated that the operating revenue of the company from 2022 to 2024 will be 35.1 billion yuan, 66.2 billion yuan and 107.8 billion yuan respectively, with a year-on-year growth rate of 107%, 89% and 63% respectively. The net profit attributable to the parent company will be 3.38 billion yuan, 5.53 billion yuan and 8.01 billion yuan respectively, with a year-on-year growth rate of 16.4%, 63% and 45% respectively. The current stock price corresponds to 37, 23 and 16 times of the price earnings ratio of 22-24 years, maintaining the “recommended” rating.
Risk warning: raw material price fluctuation risk; Risk of untimely capacity expansion; Exchange rate fluctuation risk.
