Lithium-titanium materials company annual report performance is gratifying

At present, the 2017 annual report of the New Third Board companies has been basically disclosed. The author has selected a total of 19 listed companies in the new three-board lithium battery industry. According to the 2017 annual report disclosed by 19 lithium-ion materials companies (two companies already in the market), Guangzheng Hangsheng selects operating income and growth rate, net profit and growth rate according to three aspects of growth ability, profitability and profit quality. Indexes such as ROE, gross profit margin, net interest rate, and accounts receivable turnover rate were screened for 19 lithium-ion materials companies, and companies with excellent financial status were selected for further analysis.

1. The company has grown rapidly: 19 companies realized a total operating income of 16.43 billion yuan, a year-on-year increase of 60.62%, and an average operating income of 865 million yuan, of which 10 companies have a revenue of over 1 billion, and 14 companies have a revenue of over 100 million; The net profit attributable to the mother was 2.287 billion yuan, a year-on-year increase of 122.44%, and the average net profit of the mother was 120 million yuan. The net profit of Jinchuan Technology, Shanshan Energy, Betray and Anda Technology exceeded 200 million yuan.

2. The profitability continued to improve: the company's return on net assets was 19.98%, up 5.62% from 14.36% in 2016. The net profit margin increased from 10.04% to 13.98%, up 3.95%, and the gross profit margin was raised from 23.23%. 25.22%, an increase of 1.99%, and all profit indicators have improved significantly.

3. The improvement in profit quality is obvious: operating cash inflow/operating income was 0.68 in 2017, which was significantly lower than that of 1.04 in 2016, while the proportion of net operating cash flow/net profit increased in 2017, indicating that lithium battery Part of the upstream and downstream of the material enterprises was settled through the notes receivable, and the actual cash flow was improved. At the same time, the turnover days of accounts receivable decreased from 112 days in 2016 to 93 days, which also indicated that the cash flow of the whole industry improved significantly.

4. Three New three-board lithium battery companies are worthy of attention: comprehensive growth, profitability, and profit quality. Betray, Anda Technology, Shanshan Energy and other three companies have a high overall ranking, which deserves special attention.

Risk warning: policy is less than expected, competition in the industry is intensifying, and raw material costs are rising

At present, the 2017 annual report of the New Third Board companies has been basically disclosed. Guangzhou Hengsheng screened out 19 lithium-ion materials related companies. According to the 2017 annual report disclosed by 19 lithium-ion materials companies, Guangzheng Hangsheng uses total operating income and growth rate, net profit and growth rate of returning home, gross profit margin, and other factors in terms of growth ability, profitability, and cash flow status. The financial indicators such as net interest rate, ROE, accounts receivable turnover days and other financial indicators analyze the above companies, select indicators to rank, select enterprises with excellent financial indicators, and introduce the enterprises in depth to show the style of these lithium battery companies.

First, 2017 lithium battery materials companies scored

As of May 1, 2018, there were a total of 19 new three-plate lithium electric materials listed companies, which was the same as in 2017, of which two were withdrawn from the market(Ronghui Lithium and Jinli) and two were newly listed(Kojie Lithium Power, Jinyuan New Materials) New material). At present, the annual reports of 19 lithium-ion materials companies have been disclosed, with a total operating income of 16.43 billion yuan, an increase of 60.62%, and an average operating income of 865 million yuan, of which 10 companies have revenues exceeding 1 billion, and 14 enterprises have revenues. The scale exceeded 100 million yuan; the net profit of returning to the mother was 2.287 billion yuan, an increase of 122.44% over the same period of last year, and the average net profit of the mother was 120 million yuan. The net profit of Jinchuan Technology, Shanshan Energy Betray and Anda Technology exceeded 200 million yuan.

1.12017 lithium battery material new three board enterprises grow rapidly

1.1.1 Operating income increased by 60.62% year-on-year

The 2017 annual reports of 19 lithium-ion materials companies have been disclosed, with a total operating income of 16.43 billion yuan, an increase of 60.62%, and an average operating income of 865 million yuan, of which 10 companies have revenues exceeding 1 billion, and 14 companies have the scale of revenue. Over 100 million, the top three operating income are Shanshan Energy, Jinchuan Technology and Betray.

In terms of the revenue growth rate, 84% of enterprises achieved positive growth, of which 42% had a revenue growth rate of more than 50%. The top three operating growth rates were Zhenhua Technology, Jinchuan Technology, and Jingshi Energy.

1.1.2 Net profit growth rate of over 100%

In 2017, 15 companies in the lithium-ion materials industry accounted for 78.95% of the total profits, and the total net profit of the mothers was 2.287 billion yuan, an increase of 122.44% year-on-year. The average net profit of the mothers was 120 million yuan, including Jinchuan Technology, Shanshan Energy, and Bate. Rui ranked top.

In terms of the year-on-year growth rate of net profit of returning home, 63% of enterprises achieved positive growth, 31% of which had a net profit increase of more than 100%, and the top three net profit growth rates were Jingshi Energy and Jinchuan. Technology and Zhenhua New Village.

1.2 Lithium-powered enterprises continue to improve their profitability

In 2017, the profitability of the new three-board lithium-ion materials enterprises continued to increase. The net assets return rate, gross profit margin and net profit rate were selected to analyze 16 new three-board lithium-ion materials companies. The company's return on net assets was 19.98%, compared with 14.36 in 2016. % increased by 5.62%, net profit margin increased from 10.04% to 13.98%, increased by 3.95%, gross profit margin increased from 23.23% to 25.22%, increased by 1.99%, and all profit indicators increased significantly.

1.2.1 The return on net assets increased by 5.62%

In 2017, the overall ROE was 19.98%, which was 5.62% higher than 14.36% in the same period of 2016. The increase was significant. The main reason for the increase was the substantial increase in net profit in 2017, among which enterprises with ROE above 20% had 4 At home, there are 11 companies with more than 10%, and the top ROE companies are Shanshan Energy, Jinchuan Technology, and Jinyuan New Materials.

In terms of growth rate, the overall growth of lithium-ion materials was obvious, but 11 companies had a decline in ROE. The top three ROE companies were Jinchuan Technology, Shanshan Energy and Zhongtian Xinneng.

1.2.2 Net profit margin increased by 3.95%

The gross profit margin and net profit margin of 19 lithium materials were significantly improved compared with 2016. The net profit margin increased from 10.04% to 13.98%, an increase of 3.95%. There are 15 net interest rates, 8 of which are above 10%, and the top three in terms of gross profit margin are  Frotech, Gathering Carbon and Numi Technology.The top three net interest rates are Jinchuan Technology and Ju Neng Carbon. And Anda Technology.

From the perspective of the rate of change, there are 10 companies with a net interest rate increase, and 3 companies with a growth rate of more than 5%. The top three companies are Jinchuan Technology, Shanshan Energy, and Zhongtian Xinneng.

1.2.3 Gross profit margin increased by 1.99%

The gross profit margin of lithium materials companies increased from 23.23% to 25.22% in 2017, up 1.99%, and the gross profit margin was all above 10%, of which 4% were in more than 30%, and 9 in 20%-30%. The top three companies are Frotech, Gathering Carbon and Numi Technology.

In terms of rate of change, 8 of the 19 lithium-ion materials companies have risen, of which 3 have risen by more than 5%, namely Jinchuan Technology, Frotech and Jinyuan New Materials.

1.3 The quality of earnings improved significantly

The change in operating cash flow reflects the quality of corporate earnings to a certain extent. This section selects three indicators of operating cash inflow/operating income, net operating cash flow/net profit and accounts receivable turnover days to reflect corporate cash. Flow situation.

In 2017, the cash flow of lithium-based materials companies improved significantly. The operating cash inflows/operating income of 19 lithium-based materials companies was 0.68 in 2017, which was significantly lower than that of 2016's 1.04, in terms of net operating cash flow/net profit. The proportion increased in 2017, indicating that some of the upstream and downstream of lithium battery companies were settled through notes receivable, and the actual cash flow was improved. At the same time, the turnover days of accounts receivable decreased from 112 days in 2016 to 93 days. It also shows that the cash flow of the entire industry has obviously improved.

1.3.1 Operating cash inflow / total operating income decline, corporate receivables settlement

The operating cash inflow/operating income of 19 lithium-ion materials companies was 0.68 in 2017, which was significantly lower than that of 1.04 in 2016. There were four operating cash inflows/operating incomes exceeding one, respectively. Carbon, Baijierui and Jinchuan Technology.

In terms of rate of change, 13 of the 19 lithium-ion materials companies experienced a decline in operating cash inflows/operating income, and four companies rose more than 0.1, namely Baijierui, Nuobang Technology, Ousai Energy and Jinyuan New Materials.

1.3.2 Operating cash flow is about to turn positive

In 2017, the overall net operating cash flow/net profit was -0.08. Although the overall operating cash flow of the industry was still negative, it was significantly improved compared with -0.89 in 2016, except for losses, net operating cash flow. Enterprises with a net/net profit of more than 1 are Baijierui, Kejie Lithium, Gathering Carbon, Newmi Technology, and Zhenhua New Materials.

From the point of view of the rate of change, some indicators have improved significantly. After eliminating losses, there are 7 companies with a rate of change of more than one. The top-ranked companies are Jingshi Energy, Jinchuan Technology and Zhenhua New Village.

1.3.3 Accounts receivable turnover days decreased by 18.94 days

In 2017, the turnover days of accounts receivable were 93.46 days, and the same period of 2016 was 112.4 days, down 18.94 days. The decline was obvious. From the perspective of enterprises, there are 7 enterprises with 100 days of accounts receivable turnover days, 100 to 200. There are 6 days, and the top three companies in terms of accounts receivable turnover days are Baijierui, Jiayuan Technology, and Jinchuan Technology.

From the perspective of the rate of change, the turnover days of 10 companies' accounts receivable decreased, and there were 2 companies with a decline of more than 100 days and 6 of them with 30 days or more. The top three companies are spar energy, fluorocarbon batteries, and poly Can carbon.

Second, lithium battery materials company superstar list: 3 companies deserve special attention

2.1 Betray (835185.OC): lithium battery anode material is the world's first, cathode material leads the new growth pole

Founded in 2000, Betray is a specialized lithium-ion battery material company controlled by China Baoan (000009.SZ), which integrates basic research, product development, production, and sales. Its lithium battery anode material market share has been It is the world's number one, and the cathode material has become an important main business after the anode material.

Guangzheng Hengsheng believes that the company has the following four highlights: 1) Betray is the absolute leader in the negative electrode material industry, with the largest market share in the world, and has achieved the entire industrial chain layout from graphite minerals to finished anode materials; Silicon-based anode materials have been successfully introduced, and only Betray and Shanghai Shanshan can be mass-produced in China. 2) The company successfully cut into the field of cathode materials; based on the differentiated competition of high-end products, NCA is the only mass production in China, and high-nickel NCM technology is also leading domestically; in addition, it cooperates with battery recycling enterprises such as Fangyuan Environmental Protection to build power battery cathode materials. A closed loop of “R&D – Manufacturing – Consumption – Recycling”. 3) The company attaches great importance to technological innovation. In 2016, it invested more than 100 million R&D; in 2010, it established an internal research institute. At present, it has 223 R&D personnel, including 14 doctors and 62 masters. It has been approved to set up postdoctoral workstations. 4) The company's products are highly recognized by downstream battery manufacturers, and the customer resources are very high quality, including BYD, ATL, Waterma, Lishen, Guoxuan Hi-Tech, Panasonic, Sanyo, Samsung SDI, LG, etc., which provides very stable performance for the company's continued growth. Protection.

2.2 Anda Technology (830809.OC): Superstar of lithium iron phosphate industry, policy spring wind is expected to accelerate IPO

Founded in 1996, Anda Technology is principally engaged in the research and development, production and sales of lithium iron phosphate as its cathode material and its precursor, iron phosphate. In 2013, the company divested the yellow phosphorus and phosphate ore business and extended it from lithium iron phosphate to lithium iron phosphate. It has become one of the largest suppliers of lithium iron phosphate as the cathode material for domestic lithium batteries.

Guangzheng Hengsheng believes that the company has the following four highlights: 1) the company's cost advantage is significant, and the gross profit margin is high for a long time: the company is located in Kaiyang, Guizhou, one of China's three major phosphate resources areas, providing sufficient and cheap Raw materials; In addition, the company will connect to the power supply market by means of participating in power plants, etc., and will further reduce the cost of electricity in the future. 2) High-quality customer resources, continuous high demand growth, and accelerated production capacity: The policy is positive. The new energy auto industry continues to grow at a high speed, directly driving demand for lithium iron phosphate; the company is actively expanding production capacity, and the second phase and expansion capacity have all been completed and transferred to fixed assets. The third phase and expansion capacity are still under construction; the company's downstream customers are domestic battery leading enterprises such as BYD, Guoxuan Hi-Tech and AVIC Lithium, which ensure high utilization of production capacity. 3) The company's technology and research and development advantages: iron phosphate products belong to three-dimensional nanoscale standard product, leading technology; many technical indicators of lithium iron phosphate products have reached the domestic advanced level; R & D team has deep experience, has established a new lithium battery research and development system, Covers production technology and process development from phosphoric acid, food grade phosphoric acid, iron phosphate, and lithium iron phosphate. 4) On May 24, 2016, the company completed the registration of the initial public offering and listing, and in December of the same year, moved to Changshun County, Guizhou Province, Guizhou Province, Buyi, and Miao Autonomous Prefecture, to meet the IPO poverty alleviation green channel. Conditions are expected to accelerate the IPO process.

2.3 Shanshan Energy (835930.OC): Leading lithium battery anode material with leading technology and complete categories

Established in 2003, Shanshan Energy is a company specializing in the R&D, production and sales of cathode materials for lithium-ion batteries under the Shanshan Group (600884.SH). It's market share ranks first in the country and its technology is leading. Rich in products, It includes lithium cobalt oxide, nickel cobalt manganese ternary cathode material, and lithium manganate cathode material.

Guangzheng Hengsheng believes that the company has the following four highlights: 1) Shanshan Energy focuses on the cathode material of lithium batteries, covering the cathode materials required for various lithium batteries such as lithium cobalt oxide, NCM, lithium iron phosphate, and lithium manganate. The total production capacity is about 40,000 tons. In 2016, the company achieved a revenue of 2.5 billion yuan, accounting for about 16% of the market, ranking first in China. 2) The company put forward the strategy of “one total, one hospital, three bases” and vigorously build the Shibuya Research Institute. The research and development model includes “independent research and development”, “production-study-research cooperation”, “joint customized development”, etc.; currently has 61 patents, and It has a national-level enterprise technology center and a national post-doctoral research station. 3) The company is deeply engaged in the field of cathode materials, forming a stable supply chain supply-demand relationship through upstream and downstream strategic alliances and strategic cooperation. Its main customers include BYD, ATL, Lishen, LG and other well-known battery companies at home and abroad. 4) The parent company, Shanshan, is a giant in the lithium-ion industry in China. It is committed to building a closed-loop lithium battery industry chain, and all products, including cathode materials, negative materials, and electrolytes, are at the forefront of the industry. The scale and synergistic effect of Shanshan Energy and other subsidiaries are significant, which is conducive to reducing costs, opening up markets and further consolidating the leading position in the industry.

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