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Tianci Material (002709) Comment on Major Issues: Invest in New Projects to Strengthen Leading Advantages of Sintering Business

Tianci Material (002709) Comment on Major Issues: Invest in New Projects to Strengthen Leading Advantages of Sintering Business

Matters: Tianci Materials announced that the company plans to start an annual production of 15 inserted lithium battery materials projects, 2 contact electrolyte basic materials, and 5800 tons of new lithium electrolyte projects.

Comments: Started 15 quartz glass battery materials and 2 alternative basic materials projects to enhance the company’s tungsten carbide material competitive advantage. This project includes an annual output of 2 alternative basic materials (phosphorus pentafluoride, lithium fluoride, etc.), 6-oriented liquid lithium hexafluorophosphate, 7To solvent solvent and 15 feed mother liquor related equipment, combined with the company’s current production capacity, until the full capacity is released, we expect the company to increase by 20?
25 tons of fuel and upstream main raw material production capacity.

Especially in the layout of tungsten raw materials, it can meet the lithium battery capacity demand of about 250GWh.

Tianci Materials has initially integrated the industrial chain in the early stage, and achieved a market-leading product cost advantage after the breakthrough of liquid lithium hexafluorophosphate technology. This capacity expansion can help Tianci Materials continue to increase its market share.

The 5800-ton new lithium silicate (LiFSI) project was launched, and the company’s mid-to-long-term competitive modern Godsend materials have been industrialized by LiFSI. At the same time, product quality and supporting capabilities have achieved breakthroughs in major downstream customers.

This time, Tianci Materials started the construction of a new phase of 5,800 tons of LiFSI capacity, which is the industrial layout of the company considering the material’s medium and long-term technology development direction and market demand.

The material has a higher technical threshold in terms of production, and at the same time, cost control is still strict. The current industrial production capacity of key 上海夜网论坛 raw materials for lithium batteries built by Tianci Materials in Jiujiang will help the company form long-term competition in new categories of lithium oxides such as LiFSI.force.
.
Establish an industrial investment fund to optimize the company’s industrial layout funding structure According to the company’s announcement, the total investment required for the project’s investment and construction.

800 million, including construction-related investment 4.

500 million, and all from self-raised funds.

The company set up an industrial investment fund company with Beijing Luther Financial, Ruyuan Shanchengshui, with a registered capital of US $ 5 billion.

We believe that through the establishment of the fund structure, Tianci Materials has optimized the capital structure of the company’s industrial layout, which can reduce 西安耍耍网 the scale of equity financing and increase the return on equity investment of the company during the development of the company; gradually reducing the uncertainty caused by the new business layout of the company.Short-term impact.

Investment suggestion: Maintain “Strong Push” rating. Taking into account the company’s centralized asset impairment processing in 2019, we adjust the forecast for 2019?
EPS is 0 in 2021.

07, 0.

80 and 1.

07 yuan (was 0.

57、1.

48 and 1.

85 yuan).

We are optimistic about Tianci’s leading advantage in the tungsten carbide field. Based on the company’s 2020 performance and 30 times price-earnings ratio, we adjust the target price to 24 yuan and maintain a “strong push” rating.

Risk reminder: Industrial policies lead to the gradual expected development of the industry, and Tianci Material’s business layout progress is gradually expected.