\u3000\u30003 Guangdong Piano Customized Furniture Co.Ltd(002853) 00285)
Shandong Sinocera Functional Material Co.Ltd(300285) released the annual report of 2021: the annual operating revenue was 3.162 billion yuan, yoy + 24.37%, the net profit attributable to the parent company was 795 million yuan, yoy + 38.57%, and the corresponding EPS was 0.79 yuan.
The main business segments achieved steady growth. ① Benefiting from the increased sales of MLCC media materials, the revenue of the company’s electronic materials sector increased by 19.53% year-on-year to 1.046 billion yuan, the sales of electronic materials increased by 30.59% year-on-year, and the gross profit margin increased slightly by 0.33 percentage points to 47.24%. ② The company’s sales volume of dental materials in China increased and the overseas business development effect was remarkable, driving the company’s revenue of biomedical materials sector to increase by 19.44% to 695 million yuan year-on-year, and the gross profit margin increased by 4.84 percentage points to 62.33%. ③ With the new production capacity of the company’s honeycomb ceramic carrier put into operation, the yield rate gradually increased, and the overseas post market sales achieved a significant increase, the revenue of the company’s catalytic materials sector increased by 32.18% year-on-year to 417 million yuan, but the decline in the average sales price led to a decline in the gross profit margin of 2.24 percentage points to 53.13%.
The electronic materials business expanded its production capacity and contributed to the continued growth of revenue. Benefiting from the rapid development of 5g construction, new energy vehicles and other industries, there is a strong demand for domestic MLCC industrial chain. The company is the world’s leading manufacturer of MLCC powder materials, accounting for 80% in China and more than 25% in the world. Downstream customers of the company, including Samsung motor and Guang Dong Fenghua Advanced Technology (Holding) Co.Ltd(000636) are actively expanding production capacity. In order to meet the growing demand for MLCC powder in the downstream, the company will add another 2500 t / A and expand the plant on the basis of the original 2500 t / a production capacity of the raised investment project. After reaching the production capacity, the company’s MLCC medium material production capacity will reach 15000 T / a. In addition, the company’s ultra-fine zirconia powder and zirconia bead products have been successfully introduced into the new energy industry, and have been supplied in batches. It is expected that the sales will be improved in the future. In terms of high-purity ultra-fine alumina and boehmite materials for lithium battery coating, the company is actively expanding its production capacity. It is expected that the production capacity of high-purity ultra-fine alumina will be gradually expanded 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. We expect that the expansion of production capacity of each product will contribute to the continuous growth of the company’s revenue scale.
Further improve the layout of biomedical materials. In recent years, China’s oral care service market has developed rapidly, and the company has a certain popularity in the dental material industry. The company’s market share of nano zirconia powder materials for denture in China continues to increase, the overseas market development effect of zirconia ceramic blocks, glass ceramics and other dental materials is remarkable, and the overseas influence of related products is gradually increasing. In addition, the company’s shareholding in kelede, a material processing equipment manufacturer, will help the company grasp the opportunity of digital transformation of the oral industry.
Domestic substitution of catalytic materials continued to advance. The global market of honeycomb ceramic carrier is monopolized by Corning company of the United States and NGK company of Japan. The company is one of the few honeycomb ceramic manufacturers in China that have made technological breakthroughs and achieved large-scale mass production. The company is fully promoting 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. In terms of market development, 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. With the production of new production capacity and the gradual improvement of yield, the company will get more announcements and enter the list of suppliers of more main engine manufacturers to continue to promote the process of domestic substitution.
Profit forecast and investment rating of the company: Shandong Sinocera Functional Material Co.Ltd(300285) at present, it has grown into a platform company in the ceramic material industry, and its main business segments have good development prospects. Based on the company’s 2021 annual report, we adjusted the company’s profit forecast from 2022 to 2024 accordingly. The company’s net profit in 2021 is 2.652 billion yuan, and the corresponding net profit in 2021 is 2.652 billion yuan and 2.822 billion yuan respectively, corresponding to the company’s current share price of 202102 billion yuan and 2.852 billion yuan respectively. Maintain a “strongly recommended” rating.
Risk warning: intensified competition in technical routes; Lower orders from downstream customers; The growth rate of downstream demand was lower than expected.
