\u3000\u30 Beijing Jingyeda Technology Co.Ltd(003005) 68 Shenzhen Senior Technology Material Co.Ltd(300568) )
Event overview: on February 28, 2022, the company released its annual report for 2021. In 2021, the company achieved a revenue of 1.86 billion yuan, a year-on-year increase of 92.48%. The net profit attributable to the parent company was RMB 283 million, with a year-on-year increase of 133.49%, and the net profit not attributable to the parent company was RMB 296 million, with a year-on-year increase of 235.00%, all within the scope of the previous notice.
21q4 company’s revenue reached a new high. Revenue and net profit: the company’s 21q4 revenue was 546 million yuan, with a year-on-year increase of 53.47% and a month on month increase of 12.86%. The net profit attributable to the parent company was 71 million yuan, with a year-on-year increase of 279.94% and a month on month decrease of 29.91%. Benefiting from the high demand for power battery installed capacity, the company’s quarterly revenue reached a record high. Gross profit margin: the gross profit margin in Q4 was 14.14% in 21 years, with a year-on-year increase of 20.32pct and a month on month decrease of 7.91pct. The reason for the month on month decrease of gross profit margin is mainly due to the rise in the price of upstream raw materials. Expense rate: the company’s 21q4 sales, management, R & D and financial expense rates were 3.14%, 11.68%, 9.58% and 2.26% respectively, of which the sales, management and R & D expense rates increased by 1.68%, 4.29 and 4.41 PCT respectively. The increase of sales expenses and management expenses was mainly due to the increase of employee salary.
The three major factories launched their efforts and set sail in full swing for dry process, wet process and coating. In 2021, the company shipped 1.22 billion square meters in the whole year, with a year-on-year increase of 61.14%. In 21q4, 320 million square meters were shipped, and the net profit per square meter was 0.37 yuan, which continued to rise month on month. It is estimated that the company’s long-term planned total capacity of base film will exceed 6 billion square meters and coating capacity will exceed 4 billion square meters in 25 years. In the 21st year, the capital expenditure was 1.151 billion yuan, with a year-on-year increase of 702 million yuan and rapid expansion.
Overseas business continued to expand and gross profit margin rebounded significantly. The company actively expanded its overseas business. In 2021, the company’s overseas operating revenue was 396 million yuan, a year-on-year increase of 69.70%, accounting for 21.26%. The company adopted the global development strategy layout, signed a contract with northvolt in March 21, and set up a European factory in Sweden to accelerate the development of the European market; In August 21, the company signed an agreement with LG to lock in the needs of international customers. The growth of overseas orders and the improvement of product structure have significantly improved the profitability of the company. The average net profit of the company in 2021 was 0.23 yuan and that in 20 years was 0.17 yuan, with a significant year-on-year increase.
The proportion of R & D investment increased steadily, and the new production line achieved cost reduction and efficiency increase. The company’s R & D investment in 21 years reached 111 million yuan, accounting for 5.98% of the operating revenue, with a year-on-year increase of 0.12 percentage points. The width and speed of the company’s new production line have been greatly improved, and the single line efficiency can be increased by 60%, further reducing cost and increasing efficiency.
Investment suggestion: we expect the net profit attributable to the parent company from 2022 to 2024 to be RMB 685 million, 1.264 billion and 1.499 billion, with a year-on-year increase of 142%, 85% and 19%, corresponding to the valuation of 43, 23 and 19 times PE. Considering the continuous improvement of the company’s profitability and the imminent large-scale release of production capacity, we maintain the “recommended” rating.
Risk tip: the sales of new energy vehicles are less than expected; The development of overseas customers is less than expected; The production progress of new capacity is less than expected.
