2021-10-29 Shanxi Securities Co., Ltd. Zhang Pai and Li Zhaoqi studied Ningde era and issued a research report "domestic share remains stable and overseas market continues to grow". This report gives an overweight rating to Ningde era, and the stock price is currently 639.84 yuan.

Ningde era (300750)
Event description
The company released three quarterly report data, Q3 company revenue in 2021 29.28 billion yuan, year-on-year + 130.73%, month-on-month + 17.58%; return to the mother net profit of 3.267 billion yuan, year-on-year + 130.16%.
Event comment
The hot market for new energy vehicles and energy storage has led to a doubling of battery revenue compared with the same period last year. According to data from Gao Gong Lithium, in the third quarter of 2021, the installed capacity of domestic power batteries in Ningde era was 17.81GWh, an increase of + 134% over the same period last year and + 51.7% compared with the previous year; the total installed capacity in the first three quarters of 2021 was 38.86GWh, which was + 139% compared with the same period last year, with a market share of 47.15% in the domestic power battery market, making it the first in the country.
The cost is well controlled and the gross profit margin continues to rise. The company's Q3 gross profit margin was 27.9%, an increase of 0.1pcts over the same period last year, and a month-on-month increase of 0.66 pcts. The sales expense rate was 3.5%, down 0.5 pcts from the same period last year. The cost control is good, and the scale effect is expected to show advantages gradually.
Overseas business is developing rapidly and its share remains the first. In overseas markets, SNEResearch statistics show that from January to August 2021, the global installed capacity of power batteries reached 162GWh, + 139% compared with the same period last year. Among them, the global installed capacity in Ningde era was 49.1GWh, which was + 211% compared with the same period last year, which was higher than the overall growth rate. From January to August of 2021, Ningde era's global power battery market share was 30.3%, an increase of 7pct over the same period last year, and continued to be the first in the world.
The expansion of production capacity is accelerated and the utilization rate of production capacity is relatively high. Ningde era to increase investment in new production capacity. As of September 30, 2021, the company's fixed assets reached 31.85 billion yuan, + 62.32% compared with the end of 2020, and the investment of projects under construction reached 21.495 billion yuan, compared with + 273.81% at the end of 2020.
We will constantly strengthen the layout of the upper reaches of the industrial chain and open up new areas. In September, Ningde Times announced that it would acquire all shares in Millennial Lithium Corp, a Canadian lithium miner. In mid-October, Ningde Times plans to invest in the construction of an integrated battery materials industry park in Yichang, Hubei Province, which will have the production capacity of waste battery materials and materials such as lithium iron phosphate, lithium cobalt and ternary cathode materials.
Investment suggestion
Ningde era showed strong strength from technology to market expansion, and received strong policy support in energy storage and new energy vehicles. In addition, the company's overseas business is growing rapidly, and there is still a broad market space in Europe and the United States, and it is expected to become a company in the future.
An important point of profit growth.
It is estimated that the EPS of the company in 2021 and 2022 will be 4.97 and 8.45 yuan respectively, and the share price of the corresponding company will be 615.04 yuan on October 27, and the PE of the company in 2021 will be 72.75 times that of the company in 2022, maintaining the "overweight" rating.
There are risks.
Sales of new energy fell short of expectations; the macro-economy continued to decline; and the epidemic continued to spread.

A total of 39 agencies have rated the stock in the last 90 days, including 31 buy ratings and 8 overweight ratings; the average institutional target price in the past 90 days is 615.37; according to the Securities Star valuation analysis tool, the Ningde era (300750) good company has a rating of 3.5star, a good price rating of 1.5star and a comprehensive valuation rating of 2.5star.