\u3000\u3 Guocheng Mining Co.Ltd(000688) 550 Xi’An Manareco New Materials Co.Ltd(688550) )
In 2021, the performance increased by 36% year-on-year, maintaining the “buy” rating
On February 23, the company released the performance express for 2021, realizing an operating revenue of 1.539 billion yuan, a year-on-year increase of 46.67%; The net profit attributable to the parent company was 238 million yuan, a year-on-year increase of 35.91%. In 2021q4, the single quarter revenue was 406 million yuan, a year-on-year increase of 26.03%; The net profit attributable to the parent company was 70 million yuan, a year-on-year increase of 34.81%. We raised the profit forecast. It is estimated that the company’s net profit attributable to the parent company from 2022 to 2023 will be 313 and 408 (original value 309 and 375) million yuan respectively, corresponding to EPS of 446 and 581 (original value 440 and 5.34) yuan / share respectively, and the current share price corresponding to PE from 2022 to 2023 will be 20.9 and 16.0 times respectively. We are optimistic that the company will benefit from the high boom of OLED display, further expand the extended application of core technology in pharmaceutical cdmo and electrolyte additives, and maintain the “buy” rating.
OLED materials benefit from the high prosperity of the industry and the large-scale application of deuterated new technology
In 2021, the high popularity of the OLED panel industry led to a strong demand for upstream materials. According to trendforce, OLED TVs were gradually favored by the market due to the rise of LCD prices throughout 2021, and the price difference between the two narrowed from 4.7 times to 1.8 times, thus stimulating more brands to launch OLED TV products. In 2021, the annual shipment of OLED TVs reached 6.7 million, an increase of 70% year-on-year. On December 29, 2021, lgdisplay, the global leader in large-scale OLED, released the next generation OLED TV panel “OLED. Ex” with upgraded image quality. This technology uses deuterium blue organic material. In 2021, lgdisplay has applied this material to some OLED panels produced by Guangzhou factory. It plans to expand the application of this technology in Guangzhou factory and begin to apply it in pozhou factory, South Korea, in 2022. We believe that as one of the few deuterated technology masters in the field of OLED pre sublimation materials, the company will benefit from the continuous penetration of large-scale OLED display and the wide application of deuterium blue organic materials.
In the second half of 2022, new products of pharmaceutical intermediates and electrolyte additives are expected to be in large quantities
The company continues to expand the extended application of core technology in pharmaceutical cdmo and electrolyte additives. In addition to the main pharmaceutical intermediate product pa0045 at present, pa6764 used in the new formulation of alentinib is expected to pass the verification in the second half of 2022; Jusheng pharmaceutical, an oral drug for the treatment of uterine leiomyoma, applied for FDA certification in September 2021. Passing the market will bring the production order of pa5437. Pucheng Haitai new energy materials project of the company is expected to be put into operation in the second half of 2022, with an annual output of 1500 tons of VC products and 500 tons of FEC products.
Risk tips: exchange rate fluctuation risk, showing the risk of technical iteration, the progress of projects under construction is less than expected, etc.
