Penghui Energy spends tens of millions of dollars on sodium ion batteries

On October 14th, Penghui Energy (300438) issued an announcement that in order to grasp the development opportunity of sodium ion battery and actively layout the industry chain of sodium ion battery material (hard carbon anode material), the company recently signed an investment agreement with Chengdu Baishige Technology Co., Ltd. (hereinafter referred to as "Chengdu Baishige") and its original shareholders. According to the agreement, the company will invest RMB 10 million in Chengdu BASG, of which RMB 117610 will be included in Chengdu BASG's registered capital, and the remaining RMB 9.88239 million will be included in Chengdu BASG's capital reserve. After the completion of this capital increase, the company holds an 8.33% stake in Chengdu Bai Sige.

The announcement shows that Chengdu Bai Sige has a production capacity of 300-650mAh/g seven products, which can cover ultra-fast charging consumption (3C), new energy vehicles (48V start-up batteries, HEV and EV), long-life and low-temperature energy storage, rail transit, low-cost sodium ion batteries and military market demand. Among them, the ultra-high capacity hard carbon material with specific capacity ≥ 550mAh/g (the highest capacity of imported products is 480mAh/g) also has the characteristic of "zero expansion", which is in line with the development direction of the next generation of "light, thin, fast charging" smartphone; the price of sodium ion hard carbon material is much lower than that of imported products and has a very high performance-to-price advantage.

Penghui Energy said that in order to seize the opportunities for the development of sodium ion batteries and provide customers with more choices of battery products, the company has increased its research and development of sodium ion batteries in recent years. This time, it uses its own funds to increase its investment in Chengdu Bai Sige. It can enable the company to better cut into the hard carbon anode material industry chain, ensure the supply of high-quality battery raw materials, and be conducive to the future development and mass production of sodium ion battery products.

It is worth noting that Penghui Energy previously revealed in the investor question and answer that the sodium ion battery is currently in the pilot stage and is in cylindrical shape, and the production equipment can be shared with the equipment for producing cylindrical batteries. The company's sodium ion battery cathode material is sodium vanadium phosphate, which is independently developed by the company. at present, the reason why it can not be produced in large quantities is that the cathode material is difficult to buy, and the overall sodium ion battery industry chain is not yet in the climate. At present, some downstream customers are in contact with the cathode material factory.

Huachuang Securities Research report shows that the comprehensive price ratio of sodium ion battery is strong. On the cost side, the BOM cost of sodium ion battery is about 0.25yuan / Wh, while the BOM cost of LFP battery is more than 0.35yuan / Wh,. Theoretically, the material cost of sodium ion battery is about 30% Mel 40% lower than that of lithium iron phosphate battery. At the performance end, except that the energy density of sodium ion battery is slightly lower than that of lithium iron phosphate battery, sodium ion battery has advantages in other aspects, such as low temperature performance, fast charge performance, system integration efficiency, safety and so on. and the energy density will be greatly improved in the next generation of sodium ion batteries in Ningde era.

In addition, the downstream application space of sodium ion battery is large, and the field of energy storage has a broad prospect. In low temperature, fast charging and low energy density scenarios, sodium ion batteries have a broad prospect, including electric two-wheelers, low-speed vehicles and energy storage. In 2020, the domestic output of electric two-wheeled vehicles reached 48.34 million, an increase of 27.21% over the same period last year, of which more than 70% used lead-acid batteries, and there was plenty of room for sodium ion batteries to replace. From 2014 to 2020, the cumulative installed capacity of electrochemical energy storage in China has increased from 132.2MW to 3269.2MW. From the point of view of the installed product structure, lithium-ion batteries are dominant. In 2020, lithium-ion batteries account for 88.80% and lead-acid batteries account for 10.20%. Large-scale sodium-ion batteries will reflect their cost-effective advantages and will be widely used in the field of energy storage.

Taking into account the substantial expansion of Penghui energy production capacity and the continued improvement of energy storage power business, Huachuang Securities estimates that the company's operating income from 2021 to 2023 is 55.3 PE 76.7 / 10.49 billion yuan, respectively, and the corresponding return net profit is 3.49 yuan 5.02 / 718 million yuan, respectively, and the corresponding PE is 1.69 yuan, corresponding to the current PE, respectively.

It is understood that thanks to the substantial increase in battery demand from customers in various terminal areas, as well as the impact of the company's stable batch supply among new and old customers, both production and sales have increased significantly in the first half of the year, with operating income of 2.455 billion yuan in the first half, an increase of 86.88% over the same period last year, and net profit of 118 million yuan, an increase of 66.97% over the same period last year.