GEM (002340): The stronger the stronghold of the ternary precursor system, the stronger

Urban mine + new energy materials dual-wheel drive has grown into a global ternary precursor company. From waste recycling to new energy materials, urban mine + new energy materials dual-wheel drive companies have grown.

Initially transformed into the rapid development of new energy vehicles, the company will shift its focus to battery materials business, and the scale of precursor production and sales continues to expand. The company’s ternary precursor volume in 2016-2018 was 1/2/4 years, and the market share in 2018With a rate of 20%, the company has grown into a global leader in ternary precursors.

Seize the high point of the global ternary precursor, and the agreement locks core customers to stabilize the supply. The company took the lead in capturing high nickel NCA & NCM811 precursor and single crystal precursor manufacturing technology in China, and industrialized on a large scale. In 2018, the company sold high nickel precursors and single precursors.Crystal precursors account for 75% of the total sales volume of precursors. The mainstream suppliers are ECOPRO, Bangpu, Rongbai, Xiamen Tungsten, Zhenhua and other companies.

The company has entered the supply chain of Samsung SDI, CATL and BYD through the supply of ternary precursors to major customers, and has passed LGC certification to seize the global high point of ternary precursors.

The company cooperates with high-level core customers to supply large orders and dedicated lines, with over 30 tons of orders in hand; the supply of ternary precursors that have been signed in 2019-2021 is 5, respectively.

5, 6.

6 and 8.

2 benchmark, accounting for about 70% of the company’s 深圳丝袜会所 estimated ternary precursors in that year, and supply stability was achieved.

Recycling + resources dual layout, integration advantages are obvious. The company revolves around creating a “battery recycling—recycling of raw materials—recycling of materials—recycling of battery packs—new energy vehicle service” new energy full life cycle value chain, reducing vehicle use with more than 140 partner companiesPower battery recovery and disposal agreement, which recycles and disposes of used batteries each year accounts for more than 10% of China’s volume.

The company builds a complete recycling system to rebuild the higher cost advantage of cobalt and nickel.

The company united Qingshan Group and CATL to set up a joint venture company Qingmeibang New Energy in Indonesia to master core nickel resources.

The first coverage was 西安耍耍网 given a “strong recommendation” rating. The company is optimistic that the company is a ternary precursor leader. It has ushered in a period of heavy potential. The lock-up ratio for large orders has reached 70%, and the growth performance is highly certain.

We estimate the company’s net profit for 2019-2021 will be 9 respectively.

40, 11.

68 and 14.

6.6 billion.

The current anniversary corresponds to 23, 19 and 15 times the PE of 2019-2021.

The first coverage was given a “strong recommendation” rating.

Risk warning: production capacity release is less than expected, product decomposition is less than expected, cobalt and nickel prices fluctuate, and the risk of product prices falling due to increased industry competition