\u3000\u3000 Shenzhen Sunnypol Optoelectronics Co.Ltd(002876) (002876)
Event: on January 25th, the company issued the announcement of annual performance increase in 2021. It is estimated that the net profit attributable to the parent company in 2021 will be 330 million yuan to 350 million yuan, with a year-on-year increase of 182.48% to 199.60%; It is estimated that the net profit deducted from non parent company is 303 million yuan to 323 million yuan, with a year-on-year increase of 217.43% to 238.35%.
The annual performance increased rapidly and the capacity of subsidiaries was released: according to the forecast guidelines, the net profit attributable to the parent company in Q4 in a single quarter is expected to be 52 ~ 72 million yuan, yoy-19.35% ~ 11.64%, qoq-43.19% ~ 21.36%; The net profit deducted from non parent company is 45 ~ 65 million yuan, yoy-24.22% ~ 9.35%, qoq-39.51% ~ 12.72%. The company’s annual performance continued to grow, and the net profit attributable to the parent company increased significantly year-on-year. The main reasons are: (1) the prosperity of the industry continued to improve and enjoy the dividend of panel localization; (2) The production capacity of the subsidiary Hefei Shenzhen Sunnypol Optoelectronics Co.Ltd(002876) Photoelectric Technology Co., Ltd. has been fully released, and the scale effect has further strengthened its profitability; (3) With the appreciation of RMB, the purchase cost decreased.
The downstream market has extensive demand and deep binding with high-quality customers: the LCD panel industry moves eastward, the local industrial chain is becoming more and more complete, and the demand for polarizers continues to expand. The company has established long-term and stable cooperative relations with many downstream enterprises and well-known panel manufacturers in China. Its core customers include BOE, TCL Huaxing optoelectronics, Huike shares, Infovision Optoelectronics (Kunshan) Co.Ltd(688055) , Tianma, etc. The accumulation of high-quality customers has laid a solid foundation for the implementation of the company’s new projects.
Production capacity construction was carried out in an orderly manner, and production lines were updated to reduce costs and increase efficiency: according to the company’s official website, the company currently has four factories and six production lines, respectively located in Shenzhen, Putian and Hefei, of which the production capacity of production line 2 of Putian factory is 1.2 million square meters, the production capacity of production line 3 of Guangming factory is 6 million square meters, and the production capacity of production line 4 of Hefei factory is 10 million square meters Production line 5 of Hefei factory has a capacity of 6 million square meters. The company continued to promote capacity construction. According to the announcement, Longgang No. 6 production line was put into operation in the third quarter of 2021, with a full production capacity of 10 million square meters; Putian wide production line is expected to be put into operation in 2022, with a full production capacity of 6-10 million square meters; It is expected that Hefei phase II will reach production capacity in 2023, with a full production capacity of 30 million square meters, and the production capacity of TV polarizers will be greatly released. According to the announcement, the company adjusted the polarizer specification of Hefei phase II project from 2500mm to 1720mm. The project has high cutting utilization rate, easy purchase of raw materials and low cost of about 10%, which will further enrich the company’s product structure and improve production efficiency and scale effect.
Investment suggestion: we estimate that the company’s revenue from 2021 to 2023 will be 2.496 billion yuan (+ 31%), 3.357 billion yuan (+ 34.5%), 4.649 billion yuan (+ 38.5%), net profit attributable to parent company will be 351 million yuan (+ 200.85%), 494 million yuan (+ 40.65%), 798 million yuan (+ 61.5%), EPS will be 202 million yuan, 284 million yuan and 4.59 yuan respectively, corresponding to 27 times, 19 times and 12 times of PE respectively, Maintain the “Buy-A” investment rating.
Risk warning: the progress of the company’s new production line is less than expected; Excess supply and demand in the industry; Slow progress of domestic substitution, etc.
