\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 552 Triumph Science & Technology Co.Ltd(600552) )
21fy company achieved high growth in revenue / net profit attributable to parent company and steadily improved its profitability
The company released its annual report for 21 years, and 21fy achieved an operating revenue of 6.324 billion yuan, yoy + 24.79%; Net profit of 248 million yuan, yoy + 32.24%; Net profit attributable to parent company: 157 million yuan, yoy + 30.35%; The net profit attributable to the parent company after deduction is 61.657 million yuan, yoy + 1061%. Quarter by quarter, the revenue of 21q1-4 company was + 97% / + 51% / – 11% / 3% year-on-year, and the net profit attributable to the parent company was + 83% / + 77% / + 94% / – 63% year-on-year. The company’s 21fy made an extra provision for impairment of RMB 90 million (inventory of RMB 60 million and receivable of RMB 30 million), but the exchange gain or loss contributed more than RMB 70 million to the pre tax profit. The gross profit margin of the company increased by 1.44pct year-on-year, and the cost rate of sales management and R & D Finance (excluding exchange) increased by 0.17pct year-on-year. The high growth of non deduction performance reflects the improvement of revenue and gross profit margin. If the impairment is added back, the company’s non deduction performance meets the expectation. After the significant provision for impairment, the asset side risk of the company will be further eliminated, and the follow-up is expected to be light, ushering in the continuous high growth of non deduction performance.
The new materials sector contributed major profits and made a breakthrough in the field of laptop
In terms of revenue structure, the revenue of new display and new materials was 5.07/1.18 billion yuan respectively, yoy + 22.3% / 48.7%; Gross profit margin 15% / 22.3%, year-on-year + 0.3/5pct. Among them, the revenue of the new display segment is mainly contributed by the subsidiary Shenzhen Guoxian, with a net interest rate of 4.9%, a year-on-year increase of + 0.2pct. In the new materials sector, the subsidiaries Zhongheng new materials (holding 100%) and Zhongchuang Electronics (holding 62.6%) have a revenue of RMB 990 / 435 million, yoy + 28% / – 1.8%; The net profit was 88 / 100 million yuan respectively, corresponding to the net interest rate of 8.9% / 23.8%, with a year-on-year increase of + 2.9/13.1pct. The profitability of the new materials business increased significantly. We believe that it is mainly due to the expansion of the price difference between the company’s products and raw materials and the large sales profit of raw materials. In addition, with the rapid expansion of production capacity, the new materials business is still expected to achieve rapid growth in the future, while the display module business is also expected to achieve rapid growth with the expansion of production capacity and categories (laptop, car, etc.).
Fixed increase and expansion of production, not just “UTG”
The company has the only national production and chemical ultra-thin flexible glass industry chain covering “high-strength glass – extremely thin – high-precision processing” in China. The phase II project (15 million pieces / year) is expected to be completed by the end of 2022. At present, the production capacity of UTG phase I is progressing well and has been officially produced. At present, the joint controlling shareholder of the company has formed the integration ability of original sheet and deep processing, with obvious technical advantages. We believe that relying on the research and development ability of major shareholders, the company is expected to continue to be at the leading level in China in terms of UTG process, quality and cost. In addition, the company recently announced that it will expand the production of 10.2 million pieces of pen touch display integrated module / year and 3.3 million pieces of vehicle touch display integrated module / year. The annual sales revenue of the project is expected to exceed 2.4 billion yuan.
UTG volume is ready to come out and maintain the “buy” rating
We believe that the company’s traditional display module and new material businesses are expected to achieve steady expansion, and the profitability has great room for improvement. From the perspective of product release trend, we continue to be optimistic about the rapid volume of folding screen mobile phone market in the future. The company has obvious technical advantages in UTG field and has great domestic substitution ability in the future. Considering that UTG shipments may be mainly concentrated in the second half of the year, we slightly lowered the profit forecast. It is estimated that the company’s net profit attributable to the parent company in 22-24 years is RMB 249 / 465 / 640 million (the value was RMB 333 / 566 million 22-23 years ago), CAGR + 59%, corresponding to PE32 / 17 / 12 times, maintaining the “buy” rating.
Risk tip: float glass price persistence is less than expected; The construction and production of photovoltaic / electronic / medicinal glass production line of the company are not as expected.
