Jiayuan Technology (688388) New Share Coverage Study: Leading Company in High Performance Lithium Copper Foil
Main points of interest: China’s leading high-performance lithium battery copper foil manufacturer: The company was founded in 2001. Its main products are 6-12 μm comprehensive electrolytic copper foil. The main downstream is the lithium battery industry and the PCB industry. It can eventually be applied to new energy vehicles.3C digital products, energy storage systems, communication equipment, automotive electronics and other terminal fields.
The company’s technology and scale are in a leading position in China. In 2018, the company’s overall scale was 1.
52 growth rate, market share of 16.
6% Lithium Copper Foil 1.
3 nominal, market share 14.
1%, the top three in the industry.
The company is one of the few domestic companies to achieve mass production of electrolytic copper foils below 6μm. The downstream customers are mainly well-known battery manufacturers such as Ningde Times, Ningde New Energy, BYD.The proportion is over 50%.
The company’s production capacity continued to be released, and its performance continued to grow rapidly: from 2016 to 2018, the company achieved operating income4.
1.9 billion, 5.
6.6 billion and 11.
53 trillion, annual compound 上海夜网论坛 strength of 65.
89%, the company realized a net profit of 6252.
980,000 yuan, 8519.
250,000 yuan and 17643.
110,000 yuan, with an annual compound strength of 67.
The high performance growth was mainly due to the development of the downstream lithium battery industry in the direction of lightening and thinning and high energy density. Demand for the company’s dual-light 6 μm and dual-light 7-8 μm products has increased significantly.
The company’s production rate is very high. From 2016 to 2018, the company’s production capacity was 6,000 tons, 6,603 tons and 1, respectively.
38 has the highest capacity utilization rate of 112%, 120% and 110% respectively. In 2019, the company’s full production capacity is reachable1.
The growth of demand for the power battery industry is the core driving force for the demand for lithium battery copper foil: the core application area of the company’s products is the power lithium battery market.
Driven by the rapid development of the new energy vehicle market, the output of power lithium batteries will reach 65GWh by 2018, with a longer growth rate of 46.
Calculated at 900 tons / GWh, according to GGII data, it is estimated that the total domestic lithium battery copper foil production in 2019 will reach 11.
Initially, it increased by 26 each year.
In the next few years, with the strong support of national policies in the new energy automobile industry, the domestic lithium battery copper foil market will continue to maintain high growth, and it is expected that demand will reach 14 by 2020.
The company estimates: Considering that the company is the largest 6um copper foil supplier in the Ningde era, and the company expects that the net profit growth of its mothers in 2019H1 will be 219% -289%, it can give the company a static PE valuation of 35X-45X in 2018, corresponding to the market value range61.
20,000 yuan, the corresponding inquiry range is 26.
Risk warning: Copper price fluctuation risk, new energy vehicle production and sales are less than expected, risk of technological innovation in the field of new energy, single product structure and concentration of risks in downstream applications.