Home Business Capital Dynamics | Ningde Times made a net profit of 7.751 billion yuan in the first three quarters, and became the largest stock of the fund, but it was continuously reduced by Hillhouse

Capital Dynamics | Ningde Times made a net profit of 7.751 billion yuan in the first three quarters, and became the largest stock of the fund, but it was continuously reduced by Hillhouse

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Caijing.com Capital Market News handed over a financial report with a net profit increase of more than 130% and became the fund’s largest stock, the share price of lithium battery “one brother” Ningde Times (300750.SZ) went out of a downward curve.

On October 27, CATL disclosed that the company achieved revenue of 73.362 billion yuan in the first three quarters, a year-on-year increase of 132.73%; net profit attributable to the parent company was 7.751 billion yuan, a year-on-year increase of 130.9%. At the same time, CATL “surpassed” Kweichow Moutai (600519.SH) in the third quarter and became the largest stock in public funds.

But the market did not pay for this achievement. In the third quarter, Hillhouse Capital Management Co., Ltd. once again reduced its holdings of Ningde Times by 2,998,800 shares, from the seventh largest shareholder to the eighth largest shareholder. As of the close on October 28, CATL closed at 607.2 yuan per share, down 1.27%, and the market value “evaporated” 18.259 billion yuan from the previous trading day.

Earn more than 7.7 billion yuan in the first three quarters, and set a four-year cumulative performance target of 620 billion yuan

Public information shows that CATL was established in 2011 and landed on the ChiNext in June 2018. Its main products include power battery systems, energy storage systems and lithium battery materials.

Within 4 years of its launch, CATL has continuously increased its market share in the field of power batteries for new energy vehicles. According to data released by the China Automotive Power Battery Industry Innovation Alliance, in September of this year, CATL’s installed capacity reached 8.87GWh, with a market share of 56.5%, leading the second-ranked BYD by nearly 40%.

In the international market, according to data from South Korean market research organization SNE Research, the battery installed capacity of CATL reached 49.1GWh from January to August this year, and its market share rose to 30.3% from 27.1% in the previous seven months.

Reflected in the latest financial report, the Ningde era earned 7.751 billion yuan in the first three quarters of this year. Among them, the revenue in the third quarter was 29.286 billion yuan, a year-on-year increase of 130.73%; the net profit attributable to the parent was 2.685 billion yuan, a year-on-year increase of 125.49%.

It is worth noting that in the context of rising prices of bulk commodities and chemical raw materials such as lithium, nickel, and cobalt, and rising prices of cathode materials and electrolytes, CATL’s operating costs in the first three quarters of this year increased by 132.39% year-on-year, which was slightly lower than the operating cost. Revenue growth, therefore, the company’s gross profit margin increased slightly from 27.26% in the first half of this year to 27.51%, a slight increase of 0.1 percentage point from 27.41% in the same period last year.

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During the same period, the gross profit margins of Yiwei Lithium Energy, Guoxuan Hi-Tech and Xinwangda, which are also lithium battery manufacturers, decreased by 2.4, 7.98 and 1.9 percentage points from the previous quarter respectively.

On the eve of the financial report disclosure, Ningde Times also launched an equity incentive plan, saying that the number of shares to be granted was 5.161 million, accounting for about 0.22% of the total share capital, of which 4.136 million were granted for the first time and 1.025 million were reserved; exercise period And the vesting period is divided into three periods and four periods. The third period is the first year, the second year, and the third year after the grant date, which can be exercised or vested at 20%, 30%, and 50% respectively; the fourth period is after the grant date The rights are exercised or vested at 20%, 25%, 25%, 30% in four phases in the four years.

At the same time, CATL has also set the performance evaluation target for the next four years. The operating income in 2021 will not be less than 105 billion yuan, and the cumulative operating income value of the following two, three and four years will not be less than 240 billion yuan respectively. , 410 billion yuan, 620 billion yuan.

Accelerating production capacity expansion and rising asset-liability ratio

While the performance has grown substantially, the speed of CATL’s expansion is also increasing geometrically.

The financial report shows that as of the end of the reporting period, the company’s construction in progress amounted to 21.495 billion yuan, a significant increase of 273.81% from the 5.75 billion yuan at the beginning of this year; other non-current assets amounted to 21.438 billion yuan, an increase of 328.55% from the beginning of the year. The company said that it was mainly due to increased investment in new production capacity and increased prepayments for engineering equipment. At the same time, the company’s fixed assets amounted to 31.85 billion yuan, an increase of 62.32% from the beginning of the year, also due to the increase in new production capacity.

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In February this year, CATL issued three announcements of expansion in a row, with a planned total investment of no more than 29 billion yuan to build/expand three major bases, including “investment in the construction of the fifth and sixth phases of the Yibin manufacturing base in Sichuan Province” and “the holding subsidiary of Times FAW Expansion of power battery production line” and “Ningde Times Power and Energy Storage Battery Zhaoqing Project (Phase I)”.

On September 13, CATL once again “officially announced” that it plans to invest in the construction of a new lithium battery production base (Yichun) project in Yichun City, Jiangxi Province. The total investment of the project will not exceed 13.5 billion yuan, and it will be economically constructed in Yichun. The development zone and related counties and urban areas will build production bases for upstream materials such as lithium carbonate.

On October 12, CATL announced that it plans to invest in the construction of Bangpu Integrated Battery Materials Industrial Park in Yichang City, Hubei Province. The total investment amount of the project will not exceed 32 billion yuan, which is the company’s single largest investment project this year.

In terms of production capacity, according to previous announcements, in the first half of this year, CATL’s power battery and energy storage battery production capacity was 65.45GWh, the company’s annual production capacity was 131GWh, and 92.5GWh is under construction. Since 2020, the company plans to invest in new battery production bases, including Ningde Cheliwan production base, Fuding production base, Yichun production base, etc. The total project construction capital needs have reached approximately 110 billion yuan.

CITIC Securities predicts that CATL’s production capacity will reach about 200GWh by the end of 2021, and new projects are expected to gradually land in the next 2-3 years. Correspondingly, the company’s independent asset capacity is expected to reach about 200/320GWh by the end of 2021/2022, and it is expected to exceed 600GWh by 2025. .

During this period, the asset-liability ratio of CATL also increased. As of the end of the third quarter, the company’s asset-liability ratio climbed from 55.82% in the same period last year to 67.82%, an increase of 4.15 percentage points from the first half of this year.

Became the largest stock in the fund and was continuously reduced by Hillhouse

With the growing trend of automobile electrification and the goal of building a new power system with new energy as the mainstay, CATL took advantage of the “dongfeng” of the new energy craze to stand in the center of the capital market.

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In July last year, the 19.7 billion yuan fixed increase released by Ningde Times received a large number of star capital “crazy grabs”, among which Hillhouse Capital’s ten billion subscriptions were the most eye-catching. Hillhouse Capital once won Ningde Times 2.27 at a price of 161 yuan per share. % Shares, Honda, Pacific Asset Management, and UBS have also obtained allotment rights.

At the same time, the company’s share price rose from 107 yuan per share at the beginning of 2020 to over 600 yuan, and its market value soared from around 240 billion yuan to the current over 1.4 trillion yuan.

In addition, since this year, CATL has frequently been favored by large funds. According to the just-disclosed third quarter report of the fund for 2021, as of the end of the third quarter, a total of 1,225 funds held Ningde Times with a market value of 117.1 billion yuan. As a result, CATL has surpassed Kweichow Moutai, which has been the largest holding stock for eight consecutive quarters, and has become the number one holdings of public funds for the first time.

Wind data shows that as of October 28, CATL’s stock price rose by 156.09% in the past year, which was higher than the median price rise of 102.69% in the electrical equipment industry. At the same time, the company’s dynamic P/E ratio is as high as 141.73 times, far exceeding the median of 48.69 times the dynamic P/E ratio of the electrical equipment industry.

While the price-earnings ratio is higher than that of its peers, CATL has been underweight by Hillhouse Capital for two consecutive quarters.

It is understood that Hillhouse Capital invested 10 billion yuan to participate in the fixed increase of the Ningde era and was lifted on February 4. In the second quarter of this year, Hillhouse Capital reduced its holdings of 7.99 million shares of CATL. According to the third quarter report, Hillhouse reduced its holdings of 2.19 million shares to 42.607 million shares from the end of the second quarter, with a shareholding ratio of 1.83% and a market value of 22.4 billion, ranking it the seventh largest tradable shareholder.

As of the close on October 28, Hillhouse Capital’s remaining share price was about 277.14% higher than its fixed increase price.

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