\u3000\u30 Jinzai Food Group Co.Ltd(003000) 14 Eve Energy Co.Ltd(300014) )
The release of production capacity has greatly improved sales, and the profitability needs to be repaired
In 2021 and 2022q1, the company’s revenue increased significantly, which mainly benefited from the strong demand for global power batteries. The company stepped up production capacity release and achieved better sales; In 2021, the gross profit margin was 21.6%, a year-on-year decrease of 7.4 percentage points. The cost pressure of raw materials increased quarterly. The gross profit margin in 21q4 was reduced to 17.1% and that in 22q1 was 13.8%. In 2021, the R & D expenditure was 1.31 billion yuan, with a year-on-year increase of 91.5%, mainly due to the increase of R & D team, laboratory and pilot test line with more than 2000 people.
Power battery: the scale of production expansion is large, and the upstream layout is in-depth
In 2021, the company’s power battery revenue was 10.007 billion yuan, with a year-on-year increase of 146.25%, mainly due to the continuous release of new production capacity of soft pack ternary batteries and the continuous growth of battery shipments. The company’s installed capacity in China was 2.92gwh, ranking eighth. Since 2021, the company has actively expanded its production, including Chengdu 50gwh (phase I 20gwh), Jingmen 152.6gwh power energy storage battery and 20gwh large cylindrical battery, Qidong 10gwh lithium iron phosphate battery (joint venture plant), etc., and plans a Hungarian base overseas. The customer expansion has been accelerated continuously. The 4680 battery has been designated by Chengdu Universiade automobile, and has maintained close cooperation with Daimler, BMW, Xiaopeng and other high-quality automobile enterprises. In terms of supply chain guarantee, the company cooperates with Zhejiang Huayou Cobalt Co.Ltd(603799) , Yunnan Energy New Material Co.Ltd(002812) , Yunnan Yuntianhua Co.Ltd(600096) , Shenzhen Dynanonic Co.Ltd(300769) , beiteri, Shenzhen Capchem Technology.Ltd(300037) and other leading enterprises to arrange upstream resources and midstream materials.
Consumer batteries: the production capacity of small cylinders has doubled and entered the first-line customer supply system
In 2021, the revenue of consumer batteries was 6.876 billion yuan, with a year-on-year increase of 67.79%, mainly due to the company’s deep accumulation in the field of cylindrical batteries and the improvement of ternary cylindrical battery capacity to meet the demand. In April 2022, the 13th factory of the company was officially put into operation, and six global advanced high-speed production lines were built, with a production efficiency of 300 ppm. The annual capacity of cylindrical batteries (18 series and 21 series) was expanded by 750 million, with a total capacity of 1.5 billion. The company has entered the supply chain of international high-end customers of electric tools and electric two wheeled vehicles, and full orders will provide support for the company’s performance.
Profit forecast and valuation
The company is a high-quality supplier of lithium batteries, and the power and consumption sectors go hand in hand. Considering the short-term pressure on the company’s profitability caused by the rising price of raw materials, we cautiously lowered the expectation of the company’s net profit attributable to the parent company in 22-23 years to 3.223 and 5.566 billion yuan (4.230 and 7.213 billion yuan before the reduction), and increased the expectation of net profit attributable to the parent company in 24 years to 7.618 billion yuan, corresponding to EPS of 1.70, 2.93 and 4.01 yuan / share in 22-24 years, corresponding to PE of 47, 27 and 20 times, maintaining the “buy” rating.
Risk tip: the sales volume of electric vehicles is lower than expected, the price of raw materials rises, and the release of production capacity is lower than expected
