\u3000\u30 Jinzai Food Group Co.Ltd(003000) 37 Shenzhen Capchem Technology.Ltd(300037) )
The company released the first quarterly report of 2021, with a significant year-on-year increase of 229%; The company's electrolyte business volume rose at the same time, and the annual performance is expected to achieve rapid growth and maintain the overweight rating.
Key points supporting rating
The company's profit in the first quarter of 2022 increased significantly by 229% year-on-year: the company released the first quarter report of 2022, and achieved an operating revenue of 2.712 billion yuan in 2022q1, a year-on-year increase of 137.95% and a month on month increase of 9.26%; The net profit attributable to the parent company was 512 million yuan, an increase of 228.94% year-on-year and 16.63% month on month; The net profit attributable to the parent company after deduction was 503 million yuan, with a year-on-year increase of 268.44% and a month on month increase of 19.61%. The company previously predicted that the net profit attributable to the parent company in the first quarter of 2022 is expected to reach 482513 million yuan, with a year-on-year increase of 210% - 230%. The actual performance of the company is close to the upper limit of the forecast, which is in line with market expectations.
The overall gross profit margin was stable and the unit profit increased significantly: the company benefited from the continuous improvement of the development trend of the new energy vehicle industry, the strong market demand for battery chemicals business, and the significant increase in production and sales year-on-year, driving the improvement of the company's profitability. In 2022q1, the gross profit margin of sales was 33.75%, an increase of 2.4 percentage points year-on-year and a decrease of 1.83 percentage points month on month. It is estimated that the company will achieve about 23000 tons of electrolyte shipments in 2022q1, with a net profit of about 15000 yuan per ton, an increase of about 10% month on month. It is expected that the company's electrolyte shipment will reach more than 130000 tons in 2022, and the annual performance is expected to maintain rapid growth.
During the period, the expense ratio decreased and the net cash flow from operation improved: the expense of the company during 2022q1 was 289 million yuan, an increase of 54.4% year-on-year and a decrease of 15.3% month on month; The expense rate during the period was 10.64%, with a year-on-year decrease of 5.76 percentage points and a month on month decrease of 3.08 percentage points, showing the company's good cost control ability. The company's net operating cash flow improved significantly. The net operating cash flow in 2022q1 was 510 million yuan, a significant increase of 942.86% year-on-year and 41.29% month on month.
Set up a joint venture to lay out the field of lithium battery binder and solid-state battery: the company also announced that it plans to invest 36 million yuan (accounting for 60% of the registered capital of the joint venture) to establish a joint venture with Shenzhen xinbangneng. According to the announcement, simbond has profound research capability and technical accumulation in the research and product development of lithium battery binder and solid electrolyte, which is conducive to further improving the company's comprehensive competitiveness.
Valuation
Under the current share capital, the predicted earnings per share of the company from 2022 to 2024 is expected to be 4.79/5.50/6.42 yuan, corresponding to a price earnings ratio of 14.0/12.2/10.4 times; Maintain the overweight rating.
Main risks of rating
Price competition exceeds expectations; The demand for new energy vehicles does not meet expectations; The release of new capacity is not as expected; New product development fails to meet expectations; The impact of covid-19 epidemic exceeded expectations.
