Rayitek Hi-Tech Film Company Ltd.Shenzhen(688323) (688323)
event:
On November 26, the company replied in the investor Q & A area that the company’s CPI production line is currently being installed, and strive to meet the commissioning conditions by the end of the year; On October 28, the company released the third quarterly report of 2021. In the first three quarters, the company achieved an operating revenue of about 82.47 million yuan, a year-on-year decrease of 50.6%. The net profit attributable to the shareholders of the listed company was about 12.52 million yuan, a year-on-year decrease of 52.24%.
Key investment points:
CPI is expected to achieve a breakthrough and accelerate the process of domestic substitution
The company successfully produced CPI films in 2018. These products have excellent optical and mechanical properties and can be folded more than 200000 times. The key performance has passed the evaluation of Chinese terminal brand manufacturers, and the sample sales have been realized. With the completion of the 50 ton CPI special production line, the application of CPI film products in the field of flexible display electronic products such as folding screen mobile phones can be realized. At present, only a few Japanese and Korean enterprises such as Korean Kolon and Japanese Sumitomo chemical have the supply capacity in the world. No enterprise in China has the mass production capacity of CPI film for flexible display. The company is expected to fill the Chinese gap in this field.
In the first three quarters, it grew steadily and all business segments made concerted efforts
In the third quarter of 2021, the company achieved a revenue of 241 million yuan, a year-on-year decrease of 14.55%; The net profit attributable to the parent company was 44.315 million yuan, a year-on-year decrease of 3.76%, mainly affected by the high base brought by the income of 76.92 million yuan obtained by 20q3 sales production line. In the first three quarters of the year, the non net profit deducted was 41.0248 million yuan, a year-on-year increase of 17.37%; In Q3 of 2021, the company’s main revenue in a single quarter was 82.4749 million yuan, an increase of 5.23% month on month; The net profit attributable to the parent company in a single quarter was 12.5157 million yuan, a month on month increase of – 16.13%. According to the company’s semi annual report, H1 company’s thermal control PI membrane achieved a revenue of 91 million yuan, a year-on-year increase of + 29.84%; The revenue of electronic PI film was 46 million yuan, a year-on-year increase of + 62.51%; Electrical PI film achieved a revenue of 20 million yuan, a year-on-year increase of + 31.36%, and the business boards of the company maintained growth.
Jiaxing project has been continuously promoted and its growth rate has been improved
At present, the company has a PI film production capacity of 720 tons and plans to build a new polyimide film production capacity of 1600 tons. The main products of the project include thermal control PI film, electronic PI film, electrical PI film, special function PI film and other products. According to the company’s 2021 semi annual report, by 2021h1, the construction progress of the plant of the company’s Jiaxing factory has reached 75.05%, The company plans that Jiaxing base will be ready for trial production in the second half of 2022. Jiaxing base of the company is expected to quickly enlarge the company’s production capacity and improve the company’s growth rate.
Profit forecast and investment rating: the company is the leader of high-end material PI film. It is estimated that the company’s net profit attributable to the parent company from 2021 to 2023 will be RMB 66 million, RMB 100 million and RMB 151 million respectively, and the corresponding PE will be 64, 42 and 28 times respectively. It will be covered for the first time and given a “buy” rating.
Risk tips: risks that are difficult to digest after the implementation of the raised investment project; Customer structure change risk; The risk that technological innovation and product development lag behind market demand; Fluctuation risk of raw material purchase price; The construction progress of the project is less than expected.
