\u3000\u30003 Guangdong Piano Customized Furniture Co.Ltd(002853) 00285)
Event: on March 9, 2022, the company announced that the annual report of 2021: the company realized an operating revenue of 3.162 billion yuan in 2021, a year-on-year increase of 24.37%; The net profit attributable to the parent company was 795 million yuan, a year-on-year increase of 38.57%; The net profit attributable to the parent company after non deduction was 699 million yuan, a year-on-year increase of 29.61%; The net cash flow from operating activities was 572 million yuan, a year-on-year decrease of 25.94%. In Q4 of 2021, the company achieved an operating revenue of 888 million yuan, a year-on-year increase of 24.36% and a month on month increase of 11.05%; The net profit attributable to the parent company was 194 million yuan, an increase of 22.48% year-on-year and a decrease of 6.45% month on month; The net cash flow from operating activities was 319 million yuan, a year-on-year increase of 13.68% and a month on month decrease of 140.16%.
Comments:
The performance in 2021 was + 24.37% year-on-year, and the net profit attributable to the parent company was + 38.57%, which was in line with expectations
In 2021, affected by complex factors such as the continuous and repeated global epidemic, the accelerated evolution of industrial reform and uneven economic recovery, the business situation was grim. The company took multiple measures to actively respond and strive to eliminate adverse effects. All financial indicators achieved good growth. The company achieved a total operating income of 3.162 billion yuan, an increase of 24.37% over the same period last year; The net profit attributable to the shareholders of the listed company was 79500 yuan, an increase of 38.57% over the same period last year. The net cash flow from operating activities was 572 million yuan, a year-on-year decrease of 25.94%. The main reason is the expansion of the company’s production scale and the increase of raw material procurement. In addition, the company has made appropriate reserves to deal with the shortage of raw material supply and price rise, resulting in the increase of cash outflow from operating activities.
Sales expenses and management expenses increased by 4.98% and 16.98% respectively; The company’s financial expenses decreased by 46.87% year-on-year, and the interest income of main deposits increased; The company’s R & D investment increased further to 2.809 billion yuan year-on-year.
Strengthen the company’s R & D layout and ensure the efficient development of the company
The company has successively undertaken to build a series of R & D platforms such as the national enterprise technology center, the national postdoctoral scientific research workstation and Shandong electronic ceramic material technology innovation center, and has passed the expanded accreditation of “CNAs National Laboratory”. Relying on the core technology accumulated for many years, the company continues to integrate high-quality resources, focusing on the fields of electronics, catalysis, biomedicine, 5g communication, new energy and so on, develops new terminal application products with core technology support, and creates the brand of “excellent material leader” with international influence.
By the end of the reporting period, the company had added 75 patents, including 53 invention patents, 9 utility models, 5 designs and 8 foreign patents. Among them, one patent won the 22nd China Patent Excellence Award. The company has newly participated in or led one international standard, four national standards, one industry standard and two group standards; One international standard, three national standards and one group standard were newly issued.
Electronic materials sector: thanks to the development of electronic communication industry, the downstream demand is strong
In 2021, the company’s electronic materials sector achieved a revenue of 1.046 billion yuan, a year-on-year increase of 19.53%, accounting for 33.07% of the total revenue; The gross profit margin was 47.24%, a year-on-year increase of 0.33 percentage points.
The company is the world’s leading manufacturer of MLCC powder materials, with a market share of 80% in China and more than 25% in the world. Electronic materials products mainly include dielectric powder materials for MLCC, nano composite zirconia for electronics, high-purity ultra-fine alumina, electronic paste and other materials. Due to the increase of 5g base station construction density and MLCC consumption of single base station, the demand for MLCC media materials in the communication industry has increased rapidly; With the upgrading of traditional vehicles to electronics and intelligence and the rapid development of new energy vehicles, the demand for MLCC dielectric materials for vehicles has increased significantly. During the reporting period, the production and sales of MLCC powder materials of the company were booming, and the downstream demand continued to improve. 5g, automotive electronics and other industries maintained a high outlook, which was mainly reflected in the increase in the construction density of 5g base stations, the increase in the consumption of MLCC in single base stations, the improvement of electronization and intelligence of traditional vehicles and the development of electric vehicles. Downstream customers of the company, including Samsung motor, Guang Dong Fenghua Advanced Technology (Holding) Co.Ltd(000636) , Taiwan Guoju, Chaozhou Three-Circle(Group) Co.Ltd(300408) etc., are actively expanding production capacity, with a significant increase in procurement demand. The company’s MLCC media materials continue to prosper in production and marketing. Based on the 2500 t / a capacity of the original project invested with raised funds, the company will add 2500 t / A and expand the plant. After reaching the production capacity, the company’s MLCC medium material capacity will reach 15000 T / A to meet the growing demand of the downstream. At the same time, the operating revenue and profit of the company’s electronic paste business increased significantly. With the zirconia products for electronic backplane developed by major mobile phone and wearable device manufacturers, the shipment volume increased steadily. Ultra fine zirconia powder and zirconia bead products have been successfully introduced into the new energy industry and have been supplied in batch. The demand for high-purity ultra-fine alumina and boehmite materials for coating has surged. With its excellent stability, heat resistance and particle concentration, the company has become an important supplier in the lithium battery industry.
Catalytic materials: the implementation of the Sixth National Congress has brought about demand growth and made every effort to promote the domestic substitution of honeycomb ceramics
In 2021, the company’s catalytic materials segment achieved a revenue of 417 million yuan, a year-on-year increase of 32.18%, accounting for 13.20% of the total revenue; The gross profit margin was 53.13%, down 2.24 percentage points year-on-year. In the catalytic materials sector, the implementation of the national six emission standards has brought greater market space for the growth of honeycomb ceramics. The company’s industrial chain layout for many years and the accumulation of core technologies have provided strong support for the company to quickly occupy the market. The company is making every effort to promote the domestic substitution of honeycomb ceramics. The company’s silicon carbide DPF project has achieved a technological breakthrough. At present, it has completed the development of a full series of national six products, and all products have mass production capacity. The company’s ultra-thin wall TWC products and GPF products are supplied in large quantities in the field of gasoline engine micro card in China, and diesel engine doc, SCR, DPF, ASC and other products have begun to be supplied stably. The cerium zirconium solid solution independently developed by the company has the characteristics of large oxygen storage / release, high temperature resistance and strong stability, and has complete independent intellectual property rights. Now it has passed the strict quality system audit of downstream head customers, entered its supplier system directory, and began mass supply. Through the close combination of market and technology and personalized customized services, the sales volume of the company’s products in the commercial vehicle market has increased significantly, and the expansion project is expected to release production capacity in succession within the year.
Biomedical materials: overseas market development has achieved remarkable results
In 2021, the company’s biomedical sector achieved a revenue of 695 million yuan, a year-on-year increase of 19.44%, accounting for 21.98% of the total revenue; The gross profit margin was 62.33%, up 4.84 percentage points year-on-year.
In the biomedical sector, the company’s nano composite zirconia materials for denture have fully benefited from the rapid development of the oral medical industry. The demand of Chinese zirconia ceramic block manufacturers has increased significantly, and the market share of the company’s powder materials has increased significantly. In addition, overseas zirconia ceramic block manufacturers have also significantly increased their demand for relevant products based on factors such as cost, service and delivery time. Nano composite zirconia materials for denture are sold at home and abroad. The company has set up offices or subsidiaries in North America, Europe, India and other regions, and the overseas market development effect of zirconia ceramic blocks, glass ceramics and other dental materials is remarkable.
The company’s Sun Company Shenzhen aerchuang digital stomatology increased its capital and took a stake in Shenzhen kelede Medical Technology Co., Ltd., a manufacturer of material processing equipment. The two sides will jointly explore the deep integration of new digital technology and the field of oral material industry, and promote the transformation and upgrading of the industry to the direction of digitization and intelligence.
Other materials: accelerate the iteration of new products based on R & D advantages
In 2021, the company’s other materials sector achieved a revenue of 1.004 billion yuan, a year-on-year increase of 30.39%, accounting for 31.75% of the total revenue; Among them, the revenue of building ceramics was 814 million yuan, a year-on-year increase of 19.77%, and the gross profit margin was 28.05%, a year-on-year decrease of 6.51 percentage points.
Since 2021, under the impact and influence of phased power rationing, environmental protection and other factors, the development of building ceramics industry has fluctuated to some extent. Based on itself, guoci kanglitai has focused on developing many new products, such as electrostatic digital spray glaze, functional glaze, dry glaze, antibacterial glaze, skin glaze and so on. Among them, functional glaze and electrostatic glaze products have been sold in batches.
With the help of the company’s excellent R & D and production capacity, guoporcelain Jinsheng has realized the rapid iterative upgrading of ceramic bearing balls after years of technical precipitation and accumulation.
Shenzhen Aier innovative materials is engaged in the R & D, production and sales of optical communication ceramic casing, has mastered a full set of production technologies from zirconia powder forming and sintering to precision processing of ceramic casing, has accumulated rich human resources and customer resources, has formed a high brand awareness, and has a leading market share in the industry.
Gaoling / Songbai war investment landed, and the development of oral business accelerated
In May 2021, the company introduced Hillhouse / Songbai strategic investment and officially implemented it. Shandong Sinocera Functional Material Co.Ltd(300285) plans to transfer 8.89% equity of Shenzhen aerchuang technology to Hillhouse / Songbai for a total consideration of 200 million yuan; At the same time, Gaoling / Songbai arranged to provide a special development loan of 500 million yuan to Shandong Sinocera Functional Material Co.Ltd(300285) and Gaoling / Songbai obtained the share option of investing in Shenzhen aierchuang technology with no more than 500 million yuan. The company’s subsidiary Shenzhen aerchuang technology has completed all procedures for introducing strategic investors during the reporting period. The company, Shenzhen Qingyun investment service partnership (limited partnership), Dongying Mingchao equity investment partnership (limited partnership), Zhuhai Deyou Qinhui equity investment partnership (limited partnership) Carecapital upchk Holdings Limited holds 88.9%, 1.1%, 1.1%, 4.445% and 4.445% of shares of Shenzhen aerchuang technology respectively. Gaoling Deyou and Songbai investment have rich investment and operation background in the fields of oral cavity and medical health. The introduction of Gaoling Deyou and Songbai investment will help Shenzhen aerchuang technology improve product innovation and channel professionalism, and provide long-term empowerment for Shenzhen aerchuang technology.
Share repurchase demonstrates the confidence of the company’s management
As of January 2022, the company’s share repurchase price was 343968 yuan / share, which was the lowest share repurchase price of the company through the announcement of the company’s share repurchase transaction, accounting for the company’s total share price of 343938 yuan / share, which was the highest share repurchase price of the company through the centralized trading account as of March 2022, The total transaction amount is 138 million yuan (excluding transaction costs).
Establish a new energy division and increase the development of new energy related businesses.
The company held the 24th Meeting of the 4th board of directors on March 8, 2022, deliberated and adopted the proposal on adjusting the company’s organizational structure. According to the needs of the company’s strategic layout and business development, while further improving the corporate governance structure and improving the company’s management level and operation efficiency, the board of directors agreed to adjust the overall organizational structure of the company and establish a new energy division and a precision ceramics division. Through the establishment of new energy division based on alumina and boehmite for lithium battery diaphragm coating, we will vigorously develop relevant businesses in green, low-carbon and new energy, strengthen R & D and create more value.
There will be a large amount of capacity release in the near future, and the company can be expected in the future
In the field of MLCC medium materials, the company will add 2500 t / A and expand the plant on the basis of the original 2500 t / a capacity of the raised investment project. After reaching the production capacity, the company’s MLCC medium material capacity will reach 15000 T / A to meet the growing demand of the downstream. In the field of high-purity ultra-fine alumina and boehmite materials, the company will continue to expand its production capacity in 2022. It is expected that the production capacity of high-purity ultra-fine alumina will gradually expand to 30000 tons / year and boehmite to 100000 tons / year within three years, so as to meet the strong demand of lithium battery raw material market. In the field of cerium zirconium solid solution, the expansion project is expected to release production capacity in succession within the year. In 2022, the company will orderly promote the production expansion progress and capacity release of raised investment projects such as MLCC powder materials and honeycomb ceramic carriers, and plans to change the boehmite production expansion project into a raised investment project to better meet the growing needs of downstream customers, comprehensively improve the business scale and profitability, and build an attractive, competitive and influential high-end industrial cluster of new materials. It is estimated that the net profit attributable to the parent company in 2022, 2024 and 2024 will be RMB 1.089 billion, 1.439 billion and 1.738 billion respectively, corresponding to 30.81, 23.31 and 19.30 times of PE, maintaining the “buy” rating.
Risk warning: the risk of large market fluctuations caused by the epidemic; The implementation of national six standards is less than expected; The company’s integration did not meet expectations; The growth rate of downstream demand was lower than expected.
