\u3000\u3000 Do-Fluoride New Materials Co.Ltd(002407) (002407)
Event: on the evening of January 19, the company released the performance forecast for 2021. It is estimated that the net profit attributable to the parent company will be RMB 1.230-1.33 billion in 2021, with a year-on-year increase of 2430% – 2635%, of which the net profit attributable to the parent company in 2021q4 will be RMB 493-593 million, with a year-on-year increase of 1307% – 1593% and a month-on-month increase of 15% – 38%. It is estimated that in 2021, the net profit deducted from non parent company will be 1.207-1.307 billion yuan, of which the net profit deducted from non parent company in 2021q4 will be 489-589 million yuan.
Seizing the development opportunity of new energy vehicle industry, the price and volume of lithium hexafluorophosphate increased simultaneously, with outstanding performance. The high prosperity of the new energy automobile industry drives the market demand for new material products mainly lithium hexafluorophosphate. Due to the mismatch between supply and demand, the price of lithium hexafluorophosphate is in an upward cycle. As of December 31, 2021, according to Ifind data, the market price of lithium hexafluorophosphate in China was 565000 yuan / ton, with a year-on-year increase of 413.6%. Superimposed on the gradual release of the company’s new capacity of lithium hexafluorophosphate in 2021, the company’s capacity utilization remained at a high level, the overall profit level increased significantly, and the performance greatly exceeded expectations.
The production of lithium hexafluorophosphate and new lithium salts has been greatly expanded, and the industry pattern has been continuously optimized. The company now has a production capacity of 15000 T / a lithium hexafluorophosphate. Previously, it was announced that it plans to build a 100000 t / a lithium hexafluorophosphate project in three phases. It is expected that it will be completed and reach the production capacity by the end of 2025, and the market share is expected to be further improved. In addition, the company has cooperated with Byd Company Limited(002594) , Farasis Energy (Gan Zhou) Co.Ltd(688567) , enchem Co, Ltd and other customers have signed long-term sales contracts, and the sustainability of high performance growth is expected to be fully guaranteed. At the same time, the company is looking forward to the layout of new lithium salts, and its technical level and production capacity are at the forefront of the industry. Now it has 1600 T / a lifsi production capacity, and plans to produce 40000 t lifsi and 10000 t lithium difluorophosphate production capacity, which is expected to take the lead in opening up growth space.
Strengthen the layout of electronic chemicals and march into fine fluorine chemical industry. The acceleration of the localization process of semiconductors and liquid crystal panels has greatly boosted the demand for upstream electronic chemicals. At present, the company has the capacity of 50000 T / a electronic hydrofluoric acid and 2000 t / a electronic silane, and the hydrofluoric acid can reach the highest G5 level. In addition, 30000 T / A semiconductor hydrofluoric acid, 2000 t / a electronic silane, 12000 T / a electronic ammonia 12000 T / a electronic grade nitric acid and 6000 T / a electronic grade BOE capacity are under construction and are expected to be completed and put into operation in 2023. Electronic chemicals represented by electronic grade hydrofluoric acid will become another performance growth engine of the company.
Profit forecast, valuation and rating: the company’s performance in 2021 is much higher than expected. At present, the price of lithium hexafluorophosphate is still rising. Combined with the gradual implementation of the company’s new capacity of lithium hexafluorophosphate in the future, we raised the company’s profit forecast for 2021-2022 and maintained the company’s profit forecast for 2023, It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be 12.57 (up 18.1%) / 18.64 (up 8.2%) / 2.25 billion yuan respectively, maintaining the “buy” rating of the company.
Risk warning: project construction risk, product price fluctuation, risk that demand is less than expected, contract performance risk
