\u3000\u3000 Sichuan Development Lomon Co.Ltd(002312) (002312)
Event 1: on the evening of January 14, the company issued the report on issuing shares to purchase assets and related party transactions (Draft). The company plans to pay RMB 765 million and RMB 191 million to Chuanfa mining (the controlling shareholder of the company) and Sichuan salt industry respectively by issuing shares to acquire 100% of the total equity of Tianrui mining held by Chuanfa mining and Sichuan salt industry. The total number of shares issued in this transaction is about 125 million shares, and the corresponding price per share is about 7.67 yuan. This connected transaction does not constitute a major asset restructuring and listing.
Event 2: on January 4, the company established a wholly-owned subsidiary Panzhihua Sichuan Development Lomon Co.Ltd(002312) new materials Co., Ltd. (hereinafter referred to as “Panzhihua Sichuan Development Lomon Co.Ltd(002312) “) in Panzhihua City, Sichuan Province. Panzhihua Sichuan Development Lomon Co.Ltd(002312) is the main body of the company’s 200000 t / a new material project in Panzhihua vanadium titanium high tech Industrial Development Zone.
Comments:
Acquire Tianrui mining and improve the layout of phosphorus chemical integrated industrial chain
The company’s acquisition plan for Tianrui mining has been announced in July 2021. Tianrui mining currently owns the phosphate mining right of tongchanggeng (No. 8 ore block) of laoheba Phosphate Mine in Mabian, Sichuan Province. The approved phosphate production capacity is 2.5 million tons / year. At present, the registered phosphate production capacity is 2 million tons of raw ore / year. As of November 2021, the retained resources of the above phosphate rock are 87.419 million tons. In addition, Tianrui mining is also equipped with beneficiation device, and the corresponding recorded production scale is 1.15 million tons of phosphorus concentrate / year. At present, Baizhu phosphate rock and Hongxing phosphate rock under the company have a total phosphate rock production capacity of 1.15 million tons / year. The acquisition of Tianrui mining will double the phosphate rock production capacity in the upstream of the company. Under the background of the rising price of phosphate rock, the improvement of the company’s own phosphate rock production capacity will build a very obvious industrial synergy advantage.
In 2020, Tianrui mining achieved a revenue of 235 million yuan and a net profit attributable to the parent company of 12.83 million yuan. From January to September 2021, Tianrui mining achieved a revenue of 145 million yuan and a net profit attributable to the parent company of – 217 million yuan. The significant decrease in net profit attributable to the parent company of Tianrui mining in 2021 is mainly due to the provision for asset impairment of about RMB 289 million, which is mainly due to the provision for impairment of RMB 272 million for concentrator and supporting tailings pond by Tianrui mining in the reporting period. If the impairment loss of relevant assets is not considered, the net profit attributable to the parent company of Tianrui mining from January to September 2021 can reach about 72.02 million yuan. In terms of performance commitment, Sichuan development mining and Sichuan salt industry promise that the cumulative net profit after deduction under the mining right of Tianrui mining in 2022-2024 will not be less than 311 million yuan, of which the audited net profit after deduction under the mining right in 2022-2024 will not be less than 74.56 million yuan, 104 million yuan and 133 million yuan respectively.
Large scale layout of production capacity of phosphorus based new energy materials and expansion of future growth space
The company signed the investment framework agreement with the Management Committee of Panzhihua vanadium titanium high Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) Development Zone on December 20, 2021, and plans to invest in the construction of a production line with an annual output of 200000 tons of lithium iron phosphate, 200000 tons of iron phosphate and 300000 tons of sulfuric acid in Panzhihua vanadium titanium development zone. Among them, the first phase of 100000 tons of lithium iron phosphate, 100000 tons of iron phosphate and 300000 tons of sulfuric acid are expected to be completed and put into operation in October 2023, and the remaining phase II production capacity is expected to be completed and put into operation in December 2025. In addition, the company also signed an investment agreement with the Management Committee of Deyang ABA eco economic Industrial Park of Sichuan Province on November 20, 2021, and will invest in the construction of an annual production capacity of 200000 tons of lithium iron phosphate and 200000 tons of iron phosphate in the eco economic Industrial Park, of which the phase I production capacity is 100000 tons of lithium iron phosphate and 100000 tons of iron phosphate, which is expected to be completed and put into operation in October 2023, The remaining phase II capacity is expected to be completed and put into operation in December 2024. Under the strong demand in the new energy field, the company has large-scale layout of lithium iron phosphate / iron phosphate production capacity. With the integration advantage of its phosphorus chemical industry chain, the company is expected to stand out in the industry competition.
Profit forecast, valuation and rating: considering that the prices of related products in the phosphorus chemical industry chain will continue to rise or remain high in the second half of 2021, and the prices of related products are expected to remain at a medium high level in the future, we raised the company’s profit forecast. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be 10.62 (up 15.1%) / 8.22 (up 15.3%) / 925 (up 6.6%) million yuan respectively, maintaining the “buy” rating of the company.
Risk tips: the landing risk of fixed increase projects, the risk of product price fluctuation, the downstream demand is less than expected, and the construction of raised investment projects is less than expected.
