(report producer/ analyst : China Post Securities Li Shuaihua Zhang Yatong)
1. Aim to build a world-class new material enterprise
1.1 Magnetic Materials and testing business bidirectional drive
The company is mainly engaged in the research and development and production of magnetic materials And sales and inspection and testing service business, has a relatively complete magnetic material industry chain, and is committed to building a comprehensive supplier of magnetic materials. The inspection and testing service business mainly focuses on large infrastructure fields such as railways and highways, and also serves new materials such as magnetic materials for companies.
The predecessor of the company "Anhui Tianyuan Technology Co., Ltd." was established in 2002, and continued to expand the business of magnetic materials. From 2002 to 2005, successively acquired 80% equity of Tongli Magnetic Materials Co., Ltd.; built a production line with an annual output of 300 tons of NdFeB and ; established Tongling Manganese Branch. The listing of
A shares ushered in a new era for the company, and the magnetic material business has reached a higher level. In August 2006, the company (002057) was listed on Shenzhen Stock Exchange , raising funds of 140 million yuan for the construction of coarse-grained permanent magnet roller-type strong magnetic separators and an annual output of 3,000 tons of high-performance permanent magnet ferrite tile-shaped magnets 10,000 tons of high-purity, high-specific surface area and low-manganese tetroxide project; in April 2010, invested in the establishment of Kebo CNC Co., Ltd., holding 95.24% of the shares, and acquired 20% of Tongli Magnetics at a transaction price of 1.25 million yuan in December So far, the company holds 100% equity of Tongli Magnetic Materials; in August 2013, it participated in Tongling Nayuan Materials, accounting for 30% shares ; in December 2015, the subsidiary Nanjing Magnetic Materials Factory planned to build an annual output of 20,000 tons of lithium batteries and High-purity manganese tetraoxide project for soft magnetic.
Integrate and inject new material business to enhance the company's competitiveness. In 2017, Sinosteel Group integrated and injected its new material business into the listed company. After the reorganization, the company increased the development and deep processing of metal products, metal detection and manganese products; in January 2019, it acquired Guizhou Jinrui and held shares 26.5%; in 2020, successfully acquired Jinning Sanhuan and increased its shareholding to 51% through capital increase, and added soft magnetic material products; in March 2021, raised about 929 million yuan for an annual production of 15,000 tons of high-performance soft magnets Oxygen material and device construction, etc.; in October 2022, the company plans to acquire 92.3198% of the equity of Shanghai New Graphite Materials Co., Ltd. and 7.6802% of the equity of Shanghai Carbon with its own funds of 20.2696 million yuan.
Through product capacity expansion, and then achieve the overall level of the industry "world-class". Company, as a listed company controlled by a state-owned enterprise mainly engaged in magnetic materials, metal products and inspection and testing, under the current strategic background of " carbon peak , carbon neutrality", based on its own reality and development advantages, comprehensively implement the strategy Planning and industrial layout to achieve the goal of high-quality development during the "14th Five-Year Plan".
By 2025, build 3 industrial clusters above 1 billion, namely permanent magnet ferrite business, rare earth permanent magnet business, soft magnetic business, among which, the production capacity of permanent magnet ferrite devices is planned to reach 40,000 tons , The production capacity of rare earth permanent magnet devices is planned to reach 10,000 tons, and the production capacity of soft ferrite devices is planned to reach 20,000 tons. Create 3-5 hidden champion products, among which, electronic grade manganese tetraoxide and battery grade manganese tetroxide plan to add 10,000 tons of production capacity to the original basis, and the total production capacity will reach 75,000 tons.
By the end of the "14th Five-Year Plan" period, the production capacity of metal products will be expanded from 70,000 tons to 100,000 tons. is world-class, focusing on the development of high-toughness and high-strength special steel wire, special steel wire with complex cross-section and special alloy steel wire, and creating 2-3 invisible champion products.
1.2 Relying on state-owned enterprises, deepening reform
The actual controlling party of the company is State-owned Assets Supervision and Administration Commission of the State Council , and the controlling shareholder is Sinosteel Capital. As of September 30, 2022, the top five state-owned legal person shareholders of the company are Sinosteel Capital Holdings Co., Ltd., Sinosteel Zhengzhou Metal Products Engineering Technology Co., Ltd., and Sinosteel Maanshan Mine Research Co., Ltd.General Institute Co., Ltd. and China Metallurgical Science and Technology Achievements Transformation Co., Ltd., the shareholding ratios of the above four are 16.25%, 7.16%, 4.89%, and 2.05%, respectively. The State-owned Assets Supervision and Administration Commission of the State Council holds 30.94% of the company's shares indirectly through holding shares in Sinosteel Corporation, and is the ultimate controlling party. The subsidiaries of
have clear business and layout on different tracks. The various businesses that the
company is engaged in are carried out by different subsidiaries, expanding the main business while laying out new tracks. Among them, China Iron and Steel Products Institute is mainly engaged in the research and development of new technologies and new processes for various products of steel wire and steel wire rope. The China Steel National Inspection Institute under the Product Research Institute is the first batch of state-owned third-party inspection institutions approved to be established in the country. , the detection scope covers metal products, engineering raw materials and other products; the magnetic material business mainly relies on the internal secondary unit magnetic material factory, NdFeB factory, and other subsidiaries such as Tongli Magnetic Material, Jinning Sanhuan, Xinkangda, Hunan Special materials, etc.; the equipment manufacturing business relies on Zhongwei Company and Tianyuan Intelligent; in addition, the company deploys iron phosphate through Tongling Nayuan, and at the same time cooperates with the advantages of manganese materials to quickly enter the field of new lithium battery materials.
The company has established a sound incentive and restraint mechanism to stimulate the enthusiasm of employees.
On March 16, 2022, the company released the first phase of the restricted stock incentive plan announcement, planning to grant 12.86 million shares, accounting for about 1.723% of the company's total share capital, and the grant price is 4.15 yuan per share.
The total number of incentive objects granted by this plan for the first time is 143 people, including the directors, senior managers and core technology (business) backbones of the company (including branches and subsidiaries) who were working in the company when the company announced the plan. The implementation of
this incentive will help to further improve the company’s corporate governance structure, form a well-balanced value distribution system, and encourage the company’s directors, senior managers, core technology, and business personnel to pay attention to the company’s long-term development and ensure the company’s performance. , to ensure the realization of the company's strategic development plan and business objectives.
1.3 The performance has reached a new high, and the future can be expected
The company's operating income has reached a new high, and its profit has risen sharply. In 2021 and January-September 2022, the company will achieve revenues of 2.588 billion yuan and 2.081 billion yuan respectively, representing a year-on-year growth of 54.76% and 14.30% respectively; A year-on-year increase of 23.56% and 81.38%; the net profit after deducting non-returnable assets to the parent company was 173 million yuan and 233 million yuan, a year-on-year increase of 17.72% and 109.25% respectively. The substantial increase in profit is mainly due to the continuous expansion of the company's testing business and the substantial increase in the profitability of manganese manganese tetroxide products; at the same time, the performance of the shareholding companies has grown rapidly, which has greatly increased investment income.
2022 Q3, the company achieved revenue of 654 million yuan, a year-on-year decrease of 3.65%, and a month-on-month decrease of 11.14%; the net profit attributable to the parent was 82 million yuan, a year-on-year increase of 64.47%, and a month-on-month decrease of 39.7%; 62.12%, down 42.0% month-on-month.
Industrial raw materials, electronic components, testing business and metal products contribute the main operating income.
Industrial raw materials represented by trimanganese tetroxide are the company's largest revenue source, contributing 507 million yuan in the first half of 2022, accounting for 35.5%; electronic component products, including permanent ferrite devices and rare earth permanent magnet devices, Contributed 336 million yuan, accounting for 23.5%. Magnetic materials contributed nearly 60% of revenue; metal product testing contributed 246 million yuan, accounting for 17.2%; metal products contributed 206 million yuan, accounting for 14.4%.
The company's testing business has gradually expanded, becoming the main source of gross profit contribution.
In terms of business, in 2021, the company's metal product testing, metal products, industrial raw materials, electronic components, and gross profit will be 223 million yuan, 121 million yuan, 101 million yuan, and 97 million yuan respectively; among them, the gross profit of metal product testing will account for a stable proportionSet at about 50%, the gross profit ratio of electronic components and industrial raw materials in magnetic materials is decreasing year by year. As of 2021, electronic components and industrial raw materials account for 16.87 and 10.82% respectively. In terms of gross profit margin, the gross profit margins of industrial revenue, electronic components, metal product testing, and metal products in 2021 will be 10.82%, 16.87%, 49.52%, and 27.79%, respectively, which have declined slightly in recent years, but remain stable overall. During the
period, the expense ratio continued to decline, and the company achieved remarkable results in reducing costs and increasing efficiency.
’s three-fee expenses in 2021 will be 199 million yuan, a year-on-year increase of 54.26%, and the three-fee rate will be 7.69%, a year-on-year decrease of 0.38%, of which sales expenses will be 52.86 million yuan, and will increase by 173.40% year-on-year, mainly due to the increase in company revenue; Administrative expenses were 136 million yuan, an increase of 41.36% year-on-year, mainly due to the increase in the company's scope of consolidation and the increase in wages, depreciation expenses, etc.; financial expenses were 9.7 million yuan, a year-on-year decrease of 26.68%. From January to September 2022, the total cost of the three fees was 149 million yuan, a year-on-year decrease of 37.1%, and the rate of the three fees was 7.16%, a decrease of 0.53% from the beginning of the year.
The company continues to increase investment in research and development to improve its core competitiveness. In 2021, the company's research and development expenses will be 154 million yuan, a year-on-year increase of 61.93%; research and development will account for 5.95% of revenue, mainly due to the company's continuous increase in research and development efforts and investment in research and development. From January to September 2022, research and development expenses will be 126 million yuan, a year-on-year increase of 26.99%; research and development will account for 6.05% of revenue.
2. Magnetic materials: rich product matrix, strong downstream demand
Magnetic materials refer to substances that can directly or indirectly generate magnetism composed of transition elements iron, cobalt, nickel and their alloys.
magnetic materials have different classification standards: divided by material and structure, magnetic materials include metal and alloy magnetic materials and ferrite magnetic materials; divided by function, mainly including permanent magnetic materials, soft magnetic materials and functional magnetic material.
Among them, permanent magnet materials can be divided into three categories: metal permanent magnets, ferrite permanent magnets and rare earth permanent magnets according to the composition of elements; soft magnetic materials mainly include metal soft magnets, ferrite soft magnets, non-magnetic Crystal soft magnetic, nanocrystalline soft magnetic four types.
2.1 Soft magnetic material: the layout of soft ferrite, extending the industrial chain downward
Soft magnetic material is a magnetic material with low coercive force and high permeability , easy to magnetize and easy to demagnetize, its main function is The conversion and transmission of magnetic conduction and electromagnetic energy are widely used in various electric energy conversion equipment. Soft magnetic materials mainly include metal soft magnetic materials, ferrite soft magnetic materials and other soft magnetic materials.
company's soft magnetic materials and device products include manganese tetraoxide, iron silicon powder, sendust powder, manganese zinc/nickel zinc ferrite, transformers, etc.; among them, iron-based soft magnetic materials such as iron silicon powder and sendust powder The powder can be used to produce soft magnetic metal magnetic powder cores.
soft magnetic ferrite:
soft magnetic ferrite is a magnetic oxide with Fe2O3 (commonly known as " iron red "), manganese tetraoxide, nickel oxide and zinc oxide as the main raw materials, using powder metallurgy method production. According to different components, soft magnetic ferrite is mainly divided into manganese-zinc series, nickel-zinc series and magnesium-zinc series. Among them, manganese-zinc power ferrite is the largest and most widely used soft ferrite material, accounting for about 70% of the total soft ferrite production; nickel-zinc ferrite accounts for about 10%, magnesium-zinc Ferrite and other types of ferrite accounted for less than 20%.
Soft magnetic ferrite has the characteristics of high magnetic permeability, high resistivity and low loss at high frequency, which can play the role of power conversion, power conversion, anti- electromagnetic interference, , etc., and at the same time, it is convenient for mass production and mechanical processing. Made of core of various shapes, and low cost characteristics.
Therefore, soft ferrite is mainly used in the induction, coupling, conversion, conversion, transmission, isolation and absorption of electromagnetic signals in electronic systems.The biggest use is to make various electronic transformers , inductors , filters (EMI), etc.; can be widely used in new energy, consumer electronics , mobile communications and other terminal products. Among them, the communication field is the most widely used, accounting for about 22%, followed by home appliances (19%), and new energy fields such as photovoltaics and wind power (17%).
has laid out high-performance soft ferrite, and the company's industrial chain extends downstream to open up the industrial chain.
1) The company’s fixed increase plan announced in September 2020, the company plans to invest in the construction of 4 soft ferrite powder production lines, with a designed annual powder production capacity of 20,000 tons; it plans to build a soft ferrite ferrite core with 21 sintering kilns Body magnetic core production line, with a designed sintering capacity of 15,000 tons per year. Among them, powder production is the front process of magnetic core production. The construction period of the project is 24 months, and the trial production period is 12 months. Construction has not yet started. The target market of high-performance soft ferrite cores involves 5G communications, automotive electronics, photovoltaic new energy and other emerging application fields, and its future market prospects are optimistic.
2) The company will acquire Jinning Sanhuan in 2021, and the current shareholding ratio has reached 51% (completed consolidation). Jinning Sanhuan has a production capacity of 5,000 tons of soft ferrite, and already has relevant technology and a good customer base.
metal soft magnetic powder core:
metal soft magnetic powder core is made of powder made of metal, metal alloy soft magnetic material mixed with insulating medium, and then produced by powder metallurgy process. It is the core material for manufacturing inductance components . It has the characteristics of distributed air gap, good temperature characteristics, low loss, good DC bias characteristics, high saturation magnetic flux density, etc., and can meet the requirements of high efficiency, high power density, and high frequency of power conversion equipment, and is widely used in electronic communications , radar , mobile phone, photovoltaic power generation, new energy vehicle , 5G new infrastructure, rail transit and other fields.
With the development of photovoltaic, new energy vehicles, energy storage and other industries in the terminal application field, it is estimated that the demand for metal soft magnetic powder cores will reach 20.1 tons in 2025.
1) Photovoltaic and energy storage: photovoltaic inverter and energy storage inverter have the same source, and the two core key inductance components of inverter are Boost boost inductor and inverter inverter inductor. Most of the magnetic materials of the components are high-performance iron-silicon powder core materials. As photovoltaic installed capacity maintains a high growth rate and the penetration rate of string photovoltaic inverters continues to increase, the demand for metal soft magnetic powder cores will further increase; as for energy storage, according to news statistics, there are currently more than 20 provinces requiring or It is recommended that new energy power stations be equipped with energy storage, with a configuration ratio of about 10% and a configuration time of about 2 hours.
2) New energy vehicles and charging piles: New energy vehicles are the inevitable trend of future automobile development, and charging piles, as energy supply devices for new energy vehicles, will be vigorously developed accordingly.
According to statistics from the China Association of Automobile Manufacturers, the sales volume of new energy vehicles in my country will increase from 768,000 in 2017 to 3.545 million in 2021, with a CAGR of 46.6% from 2017 to 2021 and a market penetration rate from 2.7% to 13.5%. Become the world's largest new energy vehicle market. According to the forecast of Huajing Industrial Research Institute, the domestic demand for metal soft magnetic powder cores is expected to reach 201,000 tons by 2025, with a market size of over 7.52 billion yuan, and a CAGR of 19.6% from 2020 to 2025.
The company currently has about 2,600 tons of iron-silicon powder production capacity and 1,000 tons of metal magnetic powder core production capacity. In the future, the production capacity is expected to expand to 6,600 tons of soft magnetic powder and 5,000 tons of soft magnetic powder core. Hunan Special Material, a wholly-owned subsidiary of
company , mainly produces metal soft magnetic powder and devices, manganese tetroxide, etc., with a production capacity of 600 tons of iron and silicon powder. The annual output of 1,000 tons of metal magnetic powder core project and the annual output of 2,000 tons of gas atomization preparation of iron-silicon powder project have been put into production as scheduled. The company now has 2,600 tons of iron-silicon powder production capacity and 1,000 tons of metal magnetic powder core production capacity, and is currently promoting metal magnetic powder Core production line reconstruction and expansion project, new production capacity of 4,000 tons/year, and 4,000 tons of metal soft magnetic powder for the newly added metal magnetic powder core production lineThe final production line and some technical transformation projects.
Hunan Special Material has accumulated rich technology and experience for many years in the production of soft magnetic materials.
In December 2014, it successfully developed a series of alloy powders such as gas atomized iron silicon powder, gas atomized iron silicon aluminum, gas atomized iron nickel and so on, and built a pilot line for gas atomization preparation of iron silicon powder in 2014, and also Applied for relevant technical patents; then started the research and development of magnetic powder core products in 2015, completed the research on powder insulation coating, pressing molding, heat treatment and other processes, and has fully mastered the core technology of metal magnetic powder cores; in June 2019, the company independently developed " High-efficiency gas atomization to prepare ultra-fine metal soft magnetic powder technology” has passed the evaluation of scientific and technological achievements by the expert group. This technology has solved the problems of low powder atomization efficiency, poor powder microscopic shape, high magnetic powder core loss, and low DC superposition performance. It has obtained 1 national invention patent , 2 utility model patents, FeSi, FeNi50, FeSiAl and other products have been approved by third-party laboratories. Hunan Special Material's technical reserves in the fields of magnetic cores and iron-silicon powder are conducive to further strengthening the diversified operation of listed companies, improving the ability to resist risks, and conducive to the sustainable development of listed companies.
2.2 Permanent magnet material: rare earth permanent magnet and ferrite double drive, broad market prospect
permanent (hard) magnetic material refers to a strong magnetic material with strong anti-demagnetization ability and high residual magnetic induction intensity. Commonly used permanent magnet materials are divided into alnico permanent magnet alloy, iron chromium cobalt permanent magnet alloy, permanent ferrite, rare earth permanent magnet material and composite permanent magnet material.
Ferrite permanent magnets and NdFeB have their own advantages, and each has its own focus in application.
1) NdFeB coercive force and magnetic induction strength are better than ferrite;
2) In terms of price, ferrite has more advantages, much cheaper than NdFeB magnets;
3) Permanent ferrite has good temperature resistance , and NdFeB can only withstand about 80 degrees, and demagnetization and will occur if the working temperature exceeds this working temperature;
4) The stability of ferrite is very good. Alloys, which are easily oxidized and pulverized, must be protected by coatings.
Therefore, ferrite permanent magnets and NdFeB have their own advantages, and due to the influence of objective factors such as production process difficulty and raw material supply, it is difficult for the two to replace each other. It is expected to benefit from the rapid development of downstream fields in the future. The demand for the two products Will continue to climb, continuously improve quality and competitiveness.
NdFeB: the most cost-effective and widely used rare earth permanent magnet material
NdFeB has broad application prospects. Rare earth permanent magnet device products are NdFeB products made of iron, neodymium, boron and a small amount of additives dysprosium, terbium, etc. Energy-saving inverter air conditioners, industrial energy-saving motors, consumer electronics, rail transit and other fields.
NdFeB belongs to the processing and manufacturing industry, and sintered NdFeB is the most widely used and has the best performance.
According to different production processes, NdFeB permanent magnet materials can be divided into sintered, bonded and hot-pressed NdFeB. Sintered NdFeB adopts powder metallurgy process, which is made of powder made of smelted alloy and pressed in a magnetic field; bonded NdFeB is made by extrusion molding of NdFeB magnetic powder and resin or rubber; hot pressing NdFeB is an excellent full-density anisotropic magnet made by slow and large hot-pressing deformation of NdFeB magnetic powder to induce similar crystal preferred orientation. Compared with sintered NdFeB, bonded NdFeB is less prone to corrosion and less difficult to produce, but its magnetic properties are worse than sintered NdFeB.
According to the China Rare Earth Industry Association, in 2021, the output of major rare earth permanent magnet materials will maintain steady growth. The output of sintered NdFeB blanks was 207,100 tons, a year-on-year increase of 16%; the output of bonded NdFeB was 9,380 tons, a year-on-year increase of 27.2%; the output of samarium-cobalt magnets was 2,930 tons, a year-on-year increase of 31.2%.
New energy vehicles are the core driving force for the growth in demand for high-performance NdFeB.
1) New energy vehicles: permanent magnet synchronous motor uses high-performance NdFeB to generate rotor magnetic field, which has high power density, large starting torque, high limit speed and excellent braking performanceShow and torque small pulsation and other advantages, have a wide range of applications in the field of new energy vehicles. With the promotion of low-carbon environmental protection demand and energy revolution, the demand for new energy vehicles is ushering in an explosion. According to the data of China Automobile Association, from 2017 to 2021, the demand for new energy vehicles in my country will increase from 768,000 to 3.545 million, with a four-year CAGR reached 46.6%, and the latest penetration rate exceeded 30%. According to data, the amount of NdFeB used in new energy bicycles is about 3kg. With the rapid development of new energy vehicles, it will become the core driving force for the growth of demand for high-performance NdFeB.
2) Wind power: Under the background of "dual carbon", wind power installed capacity is a major trend of the times. Bloomberg New Energy Finance data predicts that the global wind power installed capacity may reach 165GW in 2021-2030. According to CWEA, the penetration rate of direct drive motors is over 30%. Given its irreplaceable advantages, its future will be in wind turbines The penetration rate of NdFeB is expected to gradually increase, which will drive the continuous growth of NdFeB consumption in the wind power field. According to Frost & Sullivan's forecast, the global consumption of rare earth permanent magnet materials will increase to 305,200 tons by 2025, and the CAGR will reach 7.8% from 2020 to 2025.
At present, the company's sintered NdFeB magnet production capacity is 2,000 tons, and plans to expand production to 10,000 tons in the future; continuously improve the performance of NdFeB products through technical transformation, while reducing costs.
NdFeB permanent magnet materials are mainly produced by the NdFeB magnet manufacturing department under the company. It is a rare earth permanent magnet manufacturer with a certain industry reputation and high customer recognition in China. It currently has a sintered NdFeB magnet production capacity of 2000 tons, and plans to expand production to 10,000 tons in the future. The rare earth permanent magnet grain boundary diffusion technology adopted by
company has further reduced the content of heavy rare earth metal , and the cost of materials has dropped significantly. The application technology of high-abundance Ce in NdFeB magnets has realized industrialization. At present, more than 70% of the company's products Use this process.
permanent magnet ferrite: the core component of micro motor
permanent magnet devices include permanent magnet ferrite devices, which are composite oxides with ferrimagnetism composed of iron oxide and one or more other metal oxides Materials, such as barium ferrite (BaFe12O19) and strontium ferrite (SrFe12O19), are characterized by high resistivity, which is especially beneficial for high-frequency and microwave applications, and are widely used in automotive-related motor manufacturing, smart home, smart wear, New energy, big data and other fields.
China is a big producer of permanent magnet ferrite, and its output ranks first in the world. Since the beginning of the 21st century, developing countries represented by China have undertaken most of the permanent magnet ferrite industry transfer from developed countries. In recent years, the output of permanent magnet ferrite in my country has remained above 500,000 tons, accounting for about 70% of the global output, ranking first in the world.
The production level of permanent magnet ferrite has made great progress, which is comparable to that of developed countries. With the continuous and in-depth development of the application market, my country's permanent magnet ferrite industry has developed rapidly in recent years, and the technological gap with developed countries has become smaller and smaller. It has the strength to produce high-performance permanent magnet ferrite. FB12 series products.
Permanent ferrite wet-pressed magnetic tiles are the core components of downstream micro-motors. With the acceleration of industrial automation, home automation, , and intelligent automobiles, the world has formed a huge market demand for micro-motors, prompting permanent magnets The oxygen body industry has also maintained rapid development.
In recent years, the micro and special motor market has maintained a continuous growth state. According to the statistics of Huajing Industrial Research Institute, the CAGR of my country's micro and special motor output is 4.79% from 2014 to 2020, and the CAGR of apparent demand is about 4.87%. There is a positive correlation between the demand for permanent magnet ferrite and the micro motor industry.
The downstream demand field of permanent magnet ferrite is developing rapidly and the market is vast.
1) Automobile: permanent magnet ferrite has been widely used in the three major parts and accessories of automobile engine, chassis and body due to its excellent temperature adaptability and corrosion resistance. With the intelligentization of automobiles and the improvement of automation level, the number of permanent magnet ferrite DC motors will increase significantly, especially in new energy vehicles, which will promote a substantial increase in the demand for ferrite permanent magnets in the automotive field.
2) Inverter appliances: High-performance permanent magnet ferrite is an important component of DC inverter motors for household appliances such as inverter air conditioners, inverter refrigerators, and inverter washing machines. With the steady and continuous increase in the penetration rate of inverter home appliances, the demand for permanent magnet ferrite will rise to a higher level.
According to the forecast of Huajing Industrial Research Institute, the domestic demand for permanent magnet ferrite in 2022 will be 748,000 tons, of which, the automobile field and the home appliance field will contribute 420,000 tons and 158,000 tons respectively; by 2025, it is expected to reach 1.014 million tons, The 2022-2025 CAGR is 8.9%. On the whole, the supply of permanent magnet ferrite is in short supply, and the industry will maintain a high degree of prosperity.
The company has advanced technology and technology, has a production capacity of 20,000 tons of high-performance permanent magnet ferrite, and plans to expand the production capacity to 40,000 tons in the future.
permanent magnet ferrite is mainly produced by the subsidiary Tongli Magnetic Materials. Its performance is equivalent to Japan's TDK level FB6, FB9, and FB12 series products (compared to the highest performance products in China). In recent years, BLDC high-performance motors have been successively developed. 6 new products including pole magnetic rings and magnetic tiles for automobile starter motors.
At present, the company has put into production a production capacity of 20,000 tons; in April 2021, it raised funds through a non-public offering of shares to build 9 production lines of ferrite permanent magnet devices, with a production capacity of 20,000 tons of high-performance permanent Motor products in the fields of high-end home appliances and automobiles have high added value, and the products of this project have strong market competitiveness.
The construction period is expected to be 2 years, and the company's total permanent magnet ferrite production capacity will reach 40,000 tons after the completion of production.
The technology of preparing iron red by roasting and oxidizing iron concentrate has been successfully developed independently, which can guarantee the self-sufficiency of pre-fired materials in the later stage, and has outstanding cost advantages. Iron concentrate powder preparation technology is to purify and prepare high-consistency iron oxide from iron ore raw ore as the base material, and produce high-quality permanent magnet oxide with high magnetic properties and stable physical properties through automatic production line stable production Body pre-fired material.
The production of calcined material by this technology has the following advantages:
1) The iron red produced by oxidation with super iron concentrate as raw material has a cost advantage compared with pickling iron red;
2) The quality can be adjusted according to the performance requirements of the product to improve The company's competitiveness in the permanent magnet ferrite industry;
3) The iron concentrate produced in Ma'anshan and surrounding areas of the company is used as raw material to prepare iron red. The supply of raw materials is sufficient, the quality is stable, and the price is low; the surrounding magnetic material industry foundation Better, there are many raw material supporting enterprises, and the supply of raw materials is fully guaranteed;
4) The raw materials do not contain chloride ions, the production process is safer and more environmentally friendly, and the green manufacturing of permanent magnet ferrite is realized.
2.3 Trimanganese tetraoxide: With the growth of demand for ferrite
Trimanganese tetraoxide can be divided into electronic grade and battery grade. Among them, battery-grade manganese tetraoxide is mainly used in lithium manganese oxide, ternary materials, lithium iron manganese phosphate, as the positive electrode material of lithium batteries, sodium batteries, , etc., which can basically fully replace traditional electrolytic manganese dioxide in Application in the battery field; electronic grade manganese tetraoxide is an important raw material for the preparation of soft magnetic materials such as manganese zinc ferrite, which is widely used in industries such as automobiles, photovoltaics, electronics, home appliances, 5G communications, electric power, charging piles, etc., and can also be used in Optical glass, thermistor and other functional materials.
The current annual output of manganese tetraoxide in my country is about 100,000 tons, and electronic grade accounts for more than 90%. According to the data from Xinsijie Industry Research Center and Limu Information Consulting, my country's production capacity and output of manganese manganese tetroxide currently rank first in the world. In 2020, China's output of manganese tetraoxide will be 93,700 tons, an increase of 8.9% year-on-year. -The CAGR in 2020 will be 33.3%; in the first half of 2021, China's battery-grade manganese manganese oxide output will be 4,303.0 tons, a year-on-year increase of 34.4%.
Trimanganese tetroxide is upstream of soft ferrite. The preparation of soft ferrite needs to go through three steps, "raw material→powder→device". In addition to iron red, manganese tetraoxide is the second largest ferrite of manganese zincThe main raw materials account for a large proportion in the raw material cost of soft ferrite. From the perspective of the industrial chain, soft magnetic ferrite is the downstream of trimanganese tetroxide, and the demand for trimanganese tetraoxide mainly depends on the market demand for soft magnetism.
As early as 2015, the company entered the lithium battery cathode material business and began to lay out the production of battery-grade manganese tetraoxide. In order to ensure the stability of production and operation, the company intends to replace the existing production line that is planned to be demolished by constructing a project with an annual output of 20,000 tons of lithium batteries and high-purity manganese tetraoxide for soft magnetic applications.
The total investment of this project is 103.3 million yuan, of which the construction investment is 66.99 million yuan. The main construction contents include an annual production line of 14,000 tons of NCQ-01 products, an annual output of 3,000 tons of high-purity high-specific surface area low-selenium manganese tetraoxide production line and annual There is one production line for 3,000 tons of battery-grade manganese tetraoxide. After the project is put into production, it can realize an annual sales income of 210.28 million yuan, an annual after-tax profit of 17.53 million yuan, and a financial internal rate of return of 20.28%. The battery-grade manganese tetraoxide produced by this project can replace the traditional electrolytic manganese dioxide for the production of lithium manganate battery positive electrode materials. Lithium manganate cathode material prepared by trimanganese tetraoxide has unique advantages: good safety, excellent low-temperature discharge performance, increased cycle times, and high discharge capacity. It is an ideal lithium battery cathode material. Through the merger and acquisition of Hunan Special Materials,
company has become the world's largest manufacturer of manganese-based metals, and plans to expand production by 10,000 tons of electronic grade manganese tetraoxide in the future. Hunan Special Material is the third largest manganese tetraoxide manufacturer in the world, focusing on ordinary manganese tetraoxide, and has technical reserves in soft magnetic cores, iron silicon powder and other fields; Sinosteel Tianyuan is the world's second largest four Manganese manganese oxide manufacturer, focusing on the development of high-grade manganese tetraoxide and new application fields such as high specific surface area. After the reorganization of
is completed, Sinosteel Tianyuan will become the world's largest manufacturer of manganese tetraoxide, with production and R&D capabilities for a full range of manganese tetraoxide for soft magnetic use and various types of non-soft magnetic manganese tetroxide, improving the market The competitiveness and bargaining power of the company in the market.
3. Layout new energy battery cathode materials and seize the opportunities of the times. Based on the industrialized battery-grade iron phosphate and battery-grade manganese tetraoxide, the company will continue to cooperate with multiple parties in the field of new energy based on the principle of complementary advantages. Among them, horizontal (new energy materials field): lithium battery materials + hydrogen fuel cell related materials, vertical (industrial chain distribution): raw materials (mineral) + iron phosphate + lithium iron phosphate, trimanganese tetraoxide + lithium manganese oxide/lithium-rich Manganese-based materials, raw materials (ores) + iron manganese phosphate + lithium iron manganese phosphate; low cobalt and no cobalt/precursors and materials + solid and semi-solid battery materials, hydrogen fuel cell catalysts + membrane electrodes, metal bipolar plates.
3.1 Patent investment in Tongling Nayuan, digging a new track-iron phosphate
Iron phosphate, also known as high iron phosphate, iron orthophosphate, is the salt of iron salt solution and sodium phosphate, in which iron is trivalent, mainly used for Lithium iron phosphate battery materials, catalysts and ceramics, etc. Although the energy density of lithium iron phosphate battery is slightly lower than that of ternary lithium battery, it has obvious advantages in terms of cost and safety. With the development of technology, lithium iron phosphate batteries are becoming more and more popular, and the installed capacity has exceeded that of ternary lithium batteries.
jointly established Tongling Nayuan to lay out the iron phosphate business. In August 2013, the company decided to jointly establish Tongling Nayuan Materials Technology Co., Ltd. with Ananda after deliberation at the meeting of the board of directors. The company invested 3.6 million yuan in the patented iron phosphate production technology, and the shareholding ratio was 30% (now reduced to 27.12 %). Ananda Company uses ilmenite as raw material and adopts sulfuric acid method titanium dioxide production process to produce titanium dioxide, in which the by-product ferrous sulfate produced during the crystallization process is the main raw material for the preparation of ferric phosphate. In 2015, Tongling Nayuan Iron Phosphate Project was completed and put into operation.
In July 2020, the original shareholders of Tongling Nayuan invested an additional 77 million yuan in the same proportion (of which Sinosteel Tianyuan 19.8 million yuan) was used for the construction of a 50,000-ton battery-grade iron phosphate project. It will be completed and put into operation in August 2021, and the production capacity of Tongling Nayuan will reach 50,000 tons. In mid-2022, the production capacity of 50,000 tons will be fully loaded.
cooperated with Hunan Yuneng to deepen the layout of iron phosphate. In April 2022, Tongling Nayuan and Hunan Yuneng jointly established Tongling Anweining New Energy Technology Co., Ltd.Lingnayuan invested 78 million yuan, accounting for 65%, to build a new 50,000-ton/year high-performance iron phosphate project. In November 2022, the new high-pressure compacted iron phosphate project will be completed and put into operation, and Tongling Nayuan will reach a production capacity of 100,000 tons/year of iron sulfate. The company expects to build a 50,000-ton/year iron phosphate production capacity project in 2023. If completed on schedule, the company's iron phosphate plant production capacity is expected to reach an annual output of 150,000 tons.
3.2 cut into manganese-based cathode materials to create a new growth engine
Adding manganese on the basis of lithium iron phosphate has gradually become a breakthrough technology for increasing voltage. lithium manganese iron phosphate (LiMnFe_1-xPO4, LMFP) (where x is the ratio of manganese to iron) batteries have 15%-20% higher energy density than lithium iron phosphate batteries. In addition, the LMFP crystal has an olivine structure, and its safety is also advantageous. At present, the industry basically recognizes that lithium manganese iron phosphate is the best technical direction, and many companies have announced the construction of 10,000-ton lithium manganese iron phosphate projects.
company is the world's main manufacturer of manganese tetraoxide. battery-grade manganese tetraoxide is an important raw material for lithium manganese oxide and lithium iron manganese phosphate. It is also widely used in new energy vehicles, photovoltaics and other fields, as well as functional materials such as optical glass and pigments. It has a strong development trend. Sinosteel Tianyuan is a major high-purity manganese tetraoxide manufacturer in the world, with a production capacity of 5,000 tons of battery-grade manganese tetraoxide, which is basically at full production. Affected by the full order of manganese tetraoxide business, the company's industrial raw material operating income in 2022H1 increased by 41.84% year-on-year.
Based on the future demand growth of the high-performance lithium manganese oxide market and the potential lithium manganese iron phosphate market, the company is planning to add 10,000 tons of battery-grade manganese tetraoxide production capacity, which is expected to be released in early 2023. In addition, the company's low-cost manganese manganese tetroxide key technology research and industrialization research and development projects have been carried out smoothly. The advantages of
sodium batteries gradually emerged. Since 2021, the price of lithium carbonate has risen, which has greatly increased the cost of lithium batteries, and the profits of downstream industries have been greatly compressed. Because of its rich resources, sodium-ion batteries have a cost advantage over lithium batteries, and have become the preferred alternatives in the current industry chain. It is estimated that after mass production, the cost of sodium-ion batteries can be reduced to 0.5-0.6 yuan/degree, which is 40% lower than the cost of lithium iron phosphate.
The positive electrode material is a key component that affects the energy density and cycle life of the battery. The main positive electrode materials of sodium ion batteries include transition metal oxides, Prussian blue, polyanions, etc. Among them, the layered oxide route and the Prussian blue route will use manganese, and manganese becomes the second most common element after sodium.
Sinosteel Tianyuan is the main manufacturer of manganese tetraoxide: company has a total production capacity of 55,000 tons/year of manganese tetraoxide (5,000 tons for battery grade and 50,000 tons for electronic grade), and the company plans to expand production by 10,000 tons and four Manganese oxide production capacity, continue to develop new energy battery cathode materials.
4. Inspection business: Focus on high-end inspection field, strengthen inspection technology capability
4.1 Sinosteel National Inspection: Authoritative organization in the field of infrastructure
Third-party inspection and testing will usher in development opportunities, and the market prospect is broad. The regionalization characteristics of the inspection and testing service industry are relatively obvious. Enterprises are mostly concentrated in subdivided fields such as building materials and engineering, environmental monitoring, motor vehicles, electronic appliances, food, medical testing, etc., operating across regions and fields, and industries with large market shares There are few faucets.
Propelled by the opening of domestic policies and industrial development in recent years, third-party testing has ushered in rapid development opportunities. The market size of the domestic quality inspection and testing industry continues to rise, and China has gradually become a "world power" in the quality inspection industry.
According to the statistics of the State Administration for Market Regulation: By the end of 2021, the number of national inspection and testing institutions has exceeded 50,000, with operating income exceeding 400 billion yuan. The fastest growing and most potential inspection and testing market. With the continuous deepening of the reform of "decentralization, management and service", my country's inspection and testing market will show a rapid development momentum. The compound growth rate is expected to reach 11.0% in the next five years. About 150 billion yuan.
was established in 1985, the National Metal Products Quality Supervision and Inspection Center (SinosteelZhengzhou Metal Products Research Institute Quality Inspection Center, a wholly-owned subsidiary of China Steel Products Research Institute) is the first batch of third-party impartial technical inspection institutions approved by the General Administration of Quality Supervision, Inspection and Quarantine, with 37 years of industry experience.
company has been approved by the State Administration for Market Regulation. As of now, it has 16000+ parameters and 5000+ products, covering national standards, industry standards, national standards, standards of developed countries such as the United States, Europe and Japan, self-developed standards, etc. A total of more than 3,900 items; and obtained the comprehensive highway inspection qualification, etc., and was successfully selected into the "2021 Railway Engineering Quality Supervision and Inspection Institution Directory".
company is one of the authoritative inspection and testing institutions in the field of large infrastructure construction in China, and its testing business involves many fields.
Testing business covers: project engineering (railways, highways, bridges, tunnels, steel structure engineering, civil air defense engineering, etc.), metal and alloy materials and products (steel wire, steel profile steel products, iron-aluminum-copper alloy, etc.), polymer and Composite materials (rubber, coatings, waterproof materials, plastic pipes, geotechnical materials, etc.), construction materials (cement, concrete, coarse and fine aggregates, etc.), coal mining equipment.
The company has domestic authoritative testing qualifications and a complete range.
has CAL, CMA, ILAC+CNAS, Ministry of Housing and Urban-Rural Development’s witness sampling/main structure/foundation/steel structure engineering/urban bridge qualification, Ministry of Communications’ comprehensive Grade A qualification and bridge and tunnel special inspection qualification, Ministry of Communications’ highway engineering Grade A qualification and highway electromechanical There are nearly 20 qualifications including special supervision qualification, Class A inspection qualification for safety production, measurement and calibration, judicial appraisal, ecological environment, and special equipment inspection and testing. Headquartered in Zhengzhou,
continues to set up subsidiaries and offices across the country. At present, the company has established 10 molecular companies, laboratories and molecular companies in Jiaozuo, Hebei, Anhui, Sichuan, Yunnan, Guangdong, Guizhou, Jilin and other places, and 34 foreign service outlets, forming a powerful testing service that radiates across the country network.
4.2 The business maintains a high growth rate, with a gross profit margin of more than 50%. The
detection business is one of the company's main businesses, and has maintained a high growth rate in recent years.
Revenue side: In 2021, the inspection and testing business revenue will be 449 million yuan, a year-on-year increase of 20.68%, accounting for 17.37% of the total revenue; the CAGR from 2017 to 2021 is about 36.3%, and it has maintained a high growth rate in recent years. The company is actively expanding its business.
Gross profit: ’s inspection and testing business has strong profitability, and its gross profit rate remains above 50%. In 2021, the gross profit margin of the testing business will be 49.52%, which is higher than other listed companies in the industry such as SVA Metrology (42.89%), Pony Testing (46.56%), and China Inspection Group (47.61%).
4.3 To enter the testing business in other fields, and at the same time use digital empowerment
to enter the testing business in other fields to increase market share. In 2019, the company acquired 80% of the equity of Guizhou Yeqian at a price of 5.28 million yuan, opening up the construction inspection market. Jilin Zhengda has the comprehensive grade-A qualification for highway engineering of the Ministry of Transport. In 2020, the company decided to acquire 100% of its shares, which means that the company has added road inspection and testing qualifications. A wholly-owned subsidiary of the company's China Steel Products Institute.
strongly promotes the Internet + testing business model and the level of automation and intelligence of testing equipment. vigorously promotes the laboratory information management system of the LIMS quality inspection center, covering business processes, finance, samples, personnel, equipment, customers, collection equipment management, electronic records, and various data statistics, realizing online management of the entire testing business process, and establishing Strong correlation between business data and financial data and docking with the ERP system; in 2020, the company will issue non-public stocks to raise funds, and plans to invest 93 million yuan in the construction of intelligent information construction projects for testing and testing. The construction period is 24 months. The overall construction plan of the quality inspection center is to carry out intelligent and information system construction on the current inspection and testing process of the quality inspection center, and incorporate the work of the headquarters and various branches into the intelligent information management system based on the Internet and cloud platform, breaking through regions and time barriers to achieve integration and barrier-free multi-site collaborationdetection work.
V. Baowu hosts Sinosteel Group, bringing industrial synergy advantages
Baowu hosts Sinosteel Group, aiming to resolve the debt risk of Sinosteel Group. In the past few years, due to aggressive expansion, Sinosteel has borrowed a lot of debt. In 2014, the loan was overdue. In 2016, it signed an agreement with six creditors including Bank of China to carry out debt restructuring. Although the subsequent business situation has improved, the debt ratio Still high.
Therefore, Sinosteel Tianyuan Co., Ltd. received a notice from China Steel Corporation on October 11, 2020, and planned to be managed by China Baowu Iron and Steel Group Co., Ltd. On October 19, 2020, the State-owned Assets Supervision and Administration Commission officially announced , China Baowu will take custody of Sinosteel Group, and the management rights will be handed over to Baowu to ensure the stability of Sinosteel Group's production. Activities have an impact.
The controlling shareholder of the company is Sinosteel Capital, and the actual controller is SASAC, which remains unchanged.
Sinosteel holds a total of 213 million shares of the company through its holding subsidiary Sinosteel Corporation Limited and the enterprises under its control, accounting for 28.3% of the company's total share capital, of which: Sinosteel Capital Holdings, a wholly-owned subsidiary of Sinosteel Co., Ltd. directly holds 123 million shares of the company, accounting for 16.25% of the company's total share capital. Sinosteel Capital is still the controlling shareholder of the company, and the State-owned Assets Supervision and Administration Commission is still the actual controller of the company. Up to now, neither the controlling shareholder nor the actual controller of the company has changed.
China Baowu Iron and Steel Group Co., Ltd. (abbreviated as China Baowu) was reorganized from the original Baosteel Group Co., Ltd. and Wuhan Iron and Steel (Group) Corporation. The "one base and five elements" pattern of coordinated development of smart service industry, resource and environment industry, industrial park industry, industrial finance industry and other related industries.
Baowu Group, as a high-tech enterprise that provides comprehensive solutions for steel and advanced materials and services in the industrial ecosystem, is expected to give the company more industrial resource support in the future and promote the company's accelerated development.
l Baowu Group is the world's largest steel company and is expected to provide the company with high-quality iron red.
In 2021, China's Baowu steel production will reach 120 million tons, achieving the historic leap of "100 million tons of Baowu" and becoming the world's top steel company. Iron red is a by-product produced in the process of steel production by domestic iron and steel enterprises. Therefore, Baowu has sufficient iron red production capacity and is expected to provide the company with high-quality iron red resources to ensure the supply of raw materials for the company.
l Baowu's new material business segment can intersect with the company's magnetic materials in many fields, which can exert industrial synergy.
The main related subsidiaries are Baowu Carbon Industry, Baosteel Metal, Baosteel Packaging, Baowu Special Metallurgy and Wuhan Refractories. The business involves four core sectors: high-performance metal materials, light metal materials, high-tech carbon materials and fiber materials and new ceramic matrix composites. The two are related in terms of technology, production process, and client, and can exert industrial synergy and achieve a win-win situation.
VI. Profit Forecast
6.1 Revenue Forecast
The company is the world's leading manufacturer of magnetic materials, among which manganese tetraoxide ranks first in the world. Benefiting from the rapid development of downstream fields such as photovoltaics, new energy, and 5G applications, the demand for products such as soft magnets, permanent magnets, and metal soft magnetic powder cores continues to rise, and production capacity is expected to be released with demand.
In this regard, we assume:
(1) Magnetic materials: the company’s production expansion project will continue to advance, put into production on schedule, and the gross profit margin will be stable; (2) Testing business: maintain a growth rate of about 40%, and the gross profit margin will remain around 50% ; (3) Stable development of other businesses.
expects the company to achieve operating income of 3.677/4.946/6.423 billion yuan in 2022/2023/2024, a year-on-year increase of 42.09%/34.54%/29.85% respectively; %/26.62%/28.67%, the corresponding EPS are 0.49/0.62/0.80 yuan.
6.2 Valuation
is based on the closing price of 10.13 yuan on November 25, 2022, and the corresponding PE in 2022-2024E is 21.01/16.59/12.89 times respectively. Considering the level of the same industry, we give the company 25 times PE, and the corresponding target price is 15.5 yuan.
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