On March 22, 2022, Lizhong Group (300428) announced: Southern Tianchen, Huatai Asset, China Merchants Bank, Southern Fund, Zhongrong Fund, Tianhong Fund, BOCOM Schroder Fund, Wells Fargo Fund, Changxin Fund, China Europe Fund, Guolian An Fund, Shanghai Tongyuan Investment, Caitong Fund, HSBC Jinxin Fund, China Merchants Fund, China Post Fund, Huaxia Fund, Changsheng Fund, ICBC Credit Suisse Fund, Pacific Securities, CICC, Huachuang Securities, Guosheng Securities investigated our company on March 22, 2022.
The main contents of this survey are:
Q: What is the background and process of the company's research and development of heat-free alloys?
A: With the development of automotive lightweight and new energy automobile industry, the demand for integrated die casting technology and the decreasing trend of process manufacturing costs in the automotive industry have vigorously promoted the research and development and market promotion of high-strength and toughness heat-free aluminum alloy materials. The heat-free treatment materials used in China are subject to foreign technology monopolies, and it is urgent to develop localized heat-free materials with independent technical property rights. To this end, Lizhong Group, as a supporting manufacturer of automotive lightweight casting aluminum alloy materials and aluminum alloy wheels for nearly four decades, has always carried out realistic research on the forward-looking trend of industry development to meet customer needs. The company began to set up a project heat-free treatment alloy project research and development in 2016, through the material composition ratio, process route design, performance index setting, process capacity guarantee and other aspects of the design and research, in 2020 applied for and successively obtained the national invention patent certificate, breaking the foreign product monopoly and technology blockade in this field, and gradually realized the market-oriented application and promotion of the material.
Q: What are the technical advantages of the company's heat-free alloy materials compared with similar foreign products?
Answer: Through the comprehensive regulation of material composition ratio, process route design, performance index setting, process guarantee, etc., the company's heat-free treatment alloy has shown good and balanced mechanical properties in terms of tensile strength, yield strength and elongation, etc. On the basis of maintaining high strength and good casting performance, the elongation rate has increased by more than 5 times compared with traditional die-casting materials, which can be better applied to the production of high-strength, high-toughness and ultra-large integrated die-casting parts. Compared with similar foreign products, the company's heat-free alloy has a comprehensive excellent performance performance, which solves the problem of higher scrap rate of subsequent integrated die-cast parts caused by poor fluidity caused by low silicon content in foreign products. At the same time, the company adopts a unique low Mo metamorphic technology, the Mo content is only 1/5-1/7 of the international similar metamorphic content, which solves the problem of dilution in the integration process, and at the same time reduces the price of similar foreign materials by 15%-20%, further enhancing the international market competitiveness of domestic materials.
Q: What are the advantages of the company's heat-free alloy in market promotion?
A: First of all, the heat-free treatment alloy independently developed by the company has a strong international competitiveness in terms of product performance and production cost. In addition, the company has a broad and stable new energy vehicle customer market base, at present directly for Weilai, Ideal, Xiaopeng, WM, Huaren Express and Niuchuang and other new energy vehicle companies to provide aluminum alloy wheel product supporting services, and completed a certain international head of new energy vehicle companies factory certification, follow-up will carry out specific project cooperation; at the same time, the company's casting aluminum alloy materials are also weilai, Xiaopeng and other new car-making forces of the second level supplier. Therefore, the company's in-depth cooperation with new energy vehicle customers will lay the foundation for the company's product certification and market promotion of heat-free alloy materials.
Q: The company's market development progress of heat-free alloys?
A: The company's heat-free alloy has been applied in the market for the production of structural parts such as battery packs and battery pack brackets for a high-end new energy vehicle. At the same time, the company has signed strategic cooperation agreements or supply agreements with downstream die-casting plants and OEMs, and cooperated with customers to jointly promote the landing of the project to meet the rapid development needs of the passenger car industry for integrated die-casting molded parts. At the same time, the company is actively communicating with a number of downstream customers to supply heat-free treatment alloy strategic cooperation agreements, and supporting the construction of related materials production capacity.
Q: What are the company's future development expectations for heat-free alloys?
A: The company's heat-free alloy has achieved mass production as an alternative to the "aluminum generation steel" material of integrated, large-size, thin-walled, complex structure and heat-treated deformable automotive structural parts. 2022 is the integrated die casting industry in-depth cooperation and mass production of the year to further land, but also the company's heat-free treatment alloy development of the first year, the future as the integrated die casting industry from the new force brand to the traditional passenger car brand, from new energy vehicles to fuel vehicles, the demand for heat-free alloy is expected to achieve a significant increase, in 2023 into a rapid development stage, and in 2024-2026 into the market outbreak period. On the basis of maintaining the leading position in the existing technology of heat-free alloys, we will continue to increase investment in the research and development of heat-free alloys to further improve the mechanical properties of materials to meet the development needs of larger integrated components. At the same time, with the goal of zero carbon development in the automotive industry more clear, the company will actively use the existing renewable aluminum alloy supply channels and use capabilities of the advantages, research and development of recycled aluminum raw materials to produce heat-free alloys, to meet the strategic requirements of the development of zero carbon in the auto parts industry, to further maintain and expand the company's technical advantages in heat-free alloys.
The main business of Lizhong Group: research and development, manufacturing and sales of new materials for aluminum alloy wheels and intermediate alloy functional alloys.
Lizhong Group's 2021 third quarter report shows that the company's main revenue was 13.104 billion yuan, up 44.77% year-on-year; net profit attributable to the mother was 337 million yuan, up 15.9% year-on-year; deducted non-net profit was 272 million yuan, up 28.77% year-on-year; among them, in the third quarter of 2021, the company's single-quarter main revenue was 4.438 billion yuan, up 20.1% year-on-year; single-quarter net profit attributable to the mother was 61.3266 million yuan, down 48.82% year-on-year. In the single quarter, the non-net profit was 44.9183 million yuan, down 57.77% year-on-year; the debt ratio was 61.14%, the investment income was 30.6813 million yuan, the financial expense was 176 million yuan, and the gross profit margin was 9.35%.
The stock has been rated by 3 institutions and 3 by buy in the last 90 days; the average target price for institutions in the past 90 days is 38.6.
Here is detailed profit forecast information:
The Securities Star Valuation Analysis Tool shows that Lizhong Group (300428) has a good company rating of 3 stars, a good price rating of 2.5 stars, and a comprehensive valuation rating of 3 stars. (Rating Range: 1 ~ 5 stars, maximum 5 stars)
The above content is compiled by Securities Star based on public information, if you have any questions, please contact us.
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