Pioneering Securities: the continuous discharge of Yiwei Lithium Power Battery demonstrates the strength of Lithium Nova

On April 19th, the company released its 2020 report, with revenue of 8.16 billion yuan, year-on-year increase of 27.3%, return profit of 1.65 billion, year-on-year increase of 8.54%, deduction of non-profit of 1.53 billion, year-on-year increase of 2.3%, and operating cash flow of 1.55 billion, up 35.9% over the same period last year. The rapid growth of overseas sales of soft-pack ternary batteries has led to the rapid growth of power battery business. The company has an iron-lithium battery production capacity of about 6gwhr by the end of 20 years, and is expected to reach 20gwhr by the end of 21 years, ensuring an adequate supply of iron-lithium battery capacity in the future.

Ternary soft pack battery is expected to achieve the effective capacity of 9gwh this year, and the nominal capacity of llgwh by the end of the year. Ternary square batteries are expected to form the nominal production capacity of 7gwh by the end of this year and 12gwh by the end of 22 years, and the capacity is expanding rapidly.

The company's power battery business is growing rapidly, and it is expected that the soft bag business will ship 3gwhr for 20 years, achieving revenue of 2.4 billion yuan; iron lithium sales of 2.8 GWH, achieving revenue of nearly 2 billion yuan; three square still does not ship a large number of goods, contributing less income. Taken together, the revenue of the power battery is expected to reach 4.2 billion yuan, a year-on-year increase of nearly double. It is estimated that in 21 years, the company's soft bag business shipments are expected to reach 7gwhr, revenue is expected to reach 5.6 billion; physical shipments are expected to reach 15gwhr, revenue is expected to reach 4.2 billion yuan; square batteries are expected to be shipped slightly, achieving nearly 100 million yuan in revenue. The company expects to ship 3G batteries in 20 years, with a revenue of 1.8 billion yuan, and is expected to reach 5 GWH in 21 years, with a revenue of 3 billion yuan, which will promote the company's performance to grow further.

In terms of small lithium-ion batteries, the company's automation level, engineering capacity, quality control and so on are in a leading position in the industry. The production efficiency and profitability of the company's products have been significantly improved, especially bean batteries, which has completed the construction of a fully automated production line based on unmanned operation, which has not only solved the previous capacity bottleneck, but also achieved a breakthrough in the manufacturing mode of the small lithium-ion battery industry. During the reporting period, the shipping scale of bean batteries mainly used in TWS increased significantly; at the same time, great achievements were made in market development, forming a solid cooperative relationship with major customers of well-known brands at home and abroad, and the customer structure became increasingly rich, laying a solid foundation for continued expansion of market share.

The company has a clear business layout and enters the acceleration channel. The company has excellent customer structure, hand in hand with SK layout ternary soft package, signed a ten-year supply contract with Daimler, modern Kia gradually increased volume; ternary square supply BMW 48V, Si Moore rapid development, continue to exceed expectations.

Investment suggestion: the net profit of the company for 21-23 years is expected to be 3.18 billion, 4.34 billion and 5.44 billion respectively, and the price-to-earnings ratio corresponding to the current market value is 47.7,34.9,27.9 times, respectively, and the buy rating is given for the first time.