Zhejiang Wazam New Materials Co.Ltd(603186) (603186)
In the continuous expansion of copper clad laminate production, the product structure continues to be optimized. In recent years, the company has strategically focused on high-end copper clad laminate products, making smooth progress in high-frequency, high-speed, HDI and other fields, and the certification and batch delivery of key customers have been promoted in an orderly manner. The pattern of copper clad laminate industry continued to focus and the voice of leading manufacturers improved. Combined with the background of global semiconductor shortage this year, the company seized the industry opportunity and smoothly expanded its production capacity. In the second half of the year, 450000 pieces / month high-end production capacity of Qingshanhu phase II was successfully put into operation, and the net profit in the first three quarters increased by 132% year-on-year. Considering the subsequent production capacity layout in Zhuhai, the company will continue to expand its production in the future, Further strengthen the collaborative relationship with downstream customers, and the CCL business is expected to achieve sustained growth.
Aluminum plastic film has a large market space, and domestic substitution is the general trend of the industry. As the key material of soft packed lithium battery, aluminum-plastic film has high technical difficulty and entry threshold. At present, China's aluminum-plastic film mainly depends on Japan's import. Aluminum plastic film accounts for about 20% of the cost of soft packed lithium battery. It is widely used in many fields such as consumer electronics, power battery and energy storage. It is an important technical route. With the rapid growth of new energy industry, the market demand and gap will continue to expand in the future. Considering that Japanese enterprises are relatively cautious in expanding production, and the price is high, the domestic penetration rate is still very low, Opening up the Chinese industrial chain of aluminum-plastic film, greatly reducing product costs and realizing domestic substitution is the general trend of the industry.
Take the lead in betting on aluminum-plastic film, which is expected to become a new driving force for growth. The company invested in the pilot production line of aluminum-plastic film in 2017. According to the company's announcement, it has passed the certification of some customers and delivered in batches. It is the first manufacturer in China to enter the field of aluminum-plastic film. Considering the rapid development of the industry, the company is building a phase I expansion project of aluminum-plastic film with an annual output of 36 million square meters in Qingshanhu intelligent manufacturing base to strengthen the layout of the field of aluminum-plastic film by optimizing the existing production line and introducing leading equipment technology. With the substantial increase of production capacity, the company is expected to achieve a continuous breakthrough from consumer electronics to small power market, and finally enter the power market. The company firmly lays out the aluminum-plastic film business, and is expected to create a new growth point and drive growth after copper clad laminate.
Investment suggestion: we estimate that the company's revenue from 2021 to 2023 will be 30.01/38.08/4.664 billion respectively, the net profit attributable to the parent company will be 249/3.44/488 million respectively, and the corresponding EPS will be 1.75/2.42/3.43 yuan. The company focuses on high-frequency and high-speed products, makes efforts to downstream industry giants, and takes the lead in the layout of aluminum-plastic film business. There is a large space for medium and long-term domestic substitution. It is expected to enter the performance continuous cashing period in the next few years and maintain the "buy" evaluation.
Risk tip: the certification progress of high-speed high-frequency board does not meet expectations; 5g progress does not meet expectations; The price of raw materials fluctuates sharply.
