\u3000\u3 Shengda Resources Co.Ltd(000603) 601 Chongqing Zaisheng Technology Co.Ltd(603601) )
The company’s revenue / net profit attributable to the parent decreased by 14% and 31% respectively year-on-year
The company released its annual report for 2021. In 2021, the company achieved a revenue of 1.62 billion yuan, a year-on-year decrease of 14.0%, a net profit attributable to the parent of 249 million yuan, a year-on-year decrease of 30.6%, and a net profit deducted from non attributable to the parent of 226 million yuan, a year-on-year decrease of 33.6%. In Q4, the revenue / net profit attributable to the parent company was RMB 464 million / 62 million in a single quarter, with a year-on-year increase of – 18.1% / + 48.0% respectively. The net profit deducted from non attributable to the parent company in the fourth quarter was RMB 57 million, with a year-on-year increase of 72.2%.
The revenue of clean air / high efficiency and energy conservation was – 29.6% / + 17.2% respectively year-on-year, and emerging fields continued to penetrate
In the 21st year, the company’s clean air segment achieved a revenue of 896 million yuan, with a year-on-year decrease of – 29.6%, mainly due to the large year-on-year decrease in the demand for masks and meltblown materials / fresh air materials for pig houses. Their revenue was 3353 / 100.61 million yuan respectively, with a year-on-year decrease of 89.3% / 57.5% respectively. In the past 21 years, the company has further expanded its new customers in the fields of traditional panel and animal husbandry, and has new penetration in the fields of petrochemical industry, industrial equipment, high-end floor sweeping Siasun Robot&Automation Co.Ltd(300024) , vacuum cleaner and other household appliances. At the same time, its developed automobile cabin air conditioning filter element products are expected to benefit from the high boom of new energy automobile industry.
In the 21st year, the company’s high-efficiency and energy-saving segment achieved revenue of 694 million yuan, a year-on-year increase of 17.2%, mainly due to the strong demand for VIP core materials and AGM diaphragms, and the overall sales volume increased by 6.83% year-on-year. Among them, AGM diaphragms benefited from the production of new production lines, and the sales volume increased by 18.06% year-on-year. In the future, under the general trend of green building development, the company’s Microfiber glass wool is expected to open up new growth space. At the same time, the construction of green household appliances, cold chain transportation and energy storage power station may continue to boost the demand for VIP core materials and AGM partitions.
Profitability declined year-on-year and remained stable compared with the past
In terms of gross profit margin, the overall gross profit margin of the company in 21 years was 31.0%, down 7.1pct year-on-year, of which the gross profit margin of clean air / high-efficiency and energy-saving business was – 11.1 / + 6.3pct year-on-year respectively. The decline in the gross profit margin of clean air was mainly due to the decline in the proportion of high gross profit masks and melt blown materials, and the increase in the cost of raw materials and chemical materials, but the gross profit margin of high-efficiency and energy-saving business increased against the trend. During the 21 years, the company’s expense rate was 15.7%, with a year-on-year increase of 2.8pct, of which the sales / management / R & D / financial expense rate was + 0.1/0.9/1.7/0.1pct respectively. The increase in R & D expenses was mainly due to the company’s increasing investment in new product R & D, and finally realized the parent net interest rate of 15.4%, with a year-on-year decrease of 3.7pct and an increase of 1.7pct compared with 19 years.
Maintain profit forecast and “buy” rating
Affected by the downturn of the downstream pig breeding industry, insufficient shipping capacity, decline in sales of masks and other businesses in 21 years, the performance is under pressure periodically, and the impact of adverse factors in 22 years may weaken. At the same time, the company’s new construction projects of 50000 tons of high-performance ultra-fine glass fiber cotton and 8000 tons of clean air filter materials are expected to be put into operation one after another, and a new round of growth is expected. Considering the great uncertainty of overseas demand, the net profit forecast for 22-23 years was lowered to 336 / 423 million yuan (previous value: 345 / 451 million yuan), and the net profit forecast for 24 years was increased to 503 million yuan. Referring to the valuation of comparable companies, the company was approved to give the target PE of 27 times in 22 years, the target price was 12.42 yuan (previous value: 14.88 yuan), and maintain the “buy” rating.
Risk tip: the demand is released, the capacity landing is less than expected, the sea freight is high and the shortage of transportation capacity continues
