Hengdian East Magnetic Field has a net profit of 1.114 billion in 2021 and other new projects such as photovoltaic and lithium power have been put into production.

Main Financial data and indicators of Hengdian East Magnetic Field in 2021 (unit: yuan)

On the evening of February 22nd, Hengdian Dongji (002056) released its 2021 results KuaiBao. The company's operating income in 2021 was 12.605 billion yuan, an increase of 55.5% over the same period last year. The net profit belonging to shareholders of listed companies was 1.114 billion yuan, an increase of 9.96% over the same period last year.

Hengdian Dongji said that with the commissioning of new projects such as photovoltaic, lithium electricity and magnetic materials, the company's operating income has achieved relatively high growth, but affected by factors such as rising prices of raw materials and sea freight, product costs have increased and gross profit margins have declined. as a result, the growth rate of net profit belonging to shareholders of listed companies is less than that of operating income.

Citic Securities believes that Hengdian East Magnetic is a domestic leader in magnetic materials, solidly promoting the business layout of magnetic materials + devices + solutions, and gradually expanding inductance products; at the same time, it is actively expanding production in photovoltaic and lithium power businesses, as the pressure on the cost side slows down next year, the company's profitability is expected to rise.

It is understood that Hengdian East Magnetic has "magnetic materials + devices" and "photovoltaic + lithium electricity" two major business plates. At the end of January this year, based on the combination of the company's strategic planning and market expansion demand, Hengdian East Magnetic announced a number of production expansion announcements: plans to invest in the new annual 6GWh high-performance lithium battery project, with a total investment estimate of 1.833 billion yuan; to invest in a new high-efficiency integrated inductor project, with a total investment estimate of 1.118 billion yuan; to invest in a soft magnetic ferrite project with an annual production capacity of 15000 tons, with a total investment estimate of 513 million yuan; It is proposed to set up a subsidiary and invest in a permanent magnet ferrite project with an annual output of 22000 tons, with a total investment estimated at 124 million yuan. In addition, Jiangsu Dongji New Energy Technology Co., Ltd., a subsidiary of the company, plans to invest in an annual 2.5GW high-efficiency module project with an estimated investment of 339 million yuan.