\u3000\u3 Shengda Resources Co.Ltd(000603) 938 Tangshan Sunfar Silicon Industry Co.Ltd(603938) )
Event: the company released its annual report for 2021. During the reporting period, the company achieved a revenue of 1.599 billion yuan (year-on-year + 58.89%) and a net profit attributable to the parent company of 336 million yuan (year-on-year + 244.76%).
“Two silicon” products have been improved by leaps and bounds, and “two potassium” products have made steady progress: during the reporting period, the performance of the company’s two silicon products has been improved by leaps and bounds. In terms of trichlorosilane, under the background of China’s continuous promotion of the goal of “carbon peak and carbon neutralization”, photovoltaic, new energy and other industries have developed rapidly, and the prosperity of the industry has continued to rise, Since 2021, there have been many new construction and expansion projects in China’s polysilicon industry, resulting in a large demand for raw material trichlorosilane. At present, the company has a capacity of 65000 tons / year of trichlorosilane, which has benefited significantly as a leader in subdivided industries. According to the announcement, during the reporting period, the company’s trichlorosilane products achieved a revenue of 530 million yuan, a year-on-year increase of + 121.65%, and achieved an output of 61500 tons, a year-on-year increase of + 0.70%. In terms of price, the average sales price (tax deduction) of trichlorosilane in 2021 was 890504 yuan / ton, compared with 21q3 + 12.64%. In terms of high-purity silicon tetrachloride, the increasing global demand for optical fiber and optical cable has formed a strong demand for high-purity silicon tetrachloride. Taking advantage of its own circular economy, the company has achieved stable operation under the background of tight supply of ordinary silicon tetrachloride driven by the prosperity of photovoltaic industry in China, and the volume and price of products have risen simultaneously, During the reporting period, the company’s high-purity silicon tetrachloride products achieved a revenue of 170 million yuan, a year-on-year increase of 218.98%, and an output of 18400 tons, a year-on-year increase of 73.59%. In terms of price, the company’s average sales price (tax deduction) of high-purity silicon tetrachloride in 2021 was 1024488 yuan / ton, compared with 21q3 + 38.12%; In addition, the company’s two potassium products have made steady progress. During the reporting period, the company’s potassium hydroxide and potassium sulfate products achieved revenue of 486 million yuan and 269 million yuan respectively, with a year-on-year increase of + 16.85% and + 8.54% respectively. The “two silicon and two potassium” products have made significant contributions to the improvement of the company’s profitability.
The downstream extension continued to advance and the scale advantage gradually expanded: the company’s extension to the downstream was smoothly promoted during the reporting period. According to the announcement, the company’s “annual output of 500 tons of electronic grade silicon dichloride and 1000 tons of electronic grade silicon trichloride” project has entered the formal production stage by the end of October 2021. At present, electronic grade silicon trichloride products have realized downstream silicon epitaxy and large-scale supply of silicon carbide industry, and electronic grade silicon dichloride products have completed data comparison with downstream customers, In the future, as various products gradually enter the market, the profitability of the company is expected to be further improved. In addition, the first and second phases of the company’s silane coupling agent project continue to be promoted. All the products that can be sold out in the first phase of the “15000 T / a silane coupling agent intermediate project” have been recognized by downstream customers and have been partially sold. The second phase of the “73000 T / a silane coupling agent series product project” will also enter formal production in 2022. In addition to continuing to extend downstream, the company continues to enhance its scale. In 2021, the company plans and constructs a 50000 T / a trichlorosilane project, which involves a production capacity of 50000 T / a of trichlorosilane and 20000 t / a of silicon tetrachloride products. According to the announcement, the project is expected to enter trial production in 22q3. After being put into operation, it will effectively expand the production capacity of the company’s main products, so as to supplement the demand for raw materials of internal silane coupling agent, high-purity silicon tetrachloride, gas-phase silica and other products, further enhance the integration advantages of the company and provide a strong boost to the improvement of the company’s profitability in the future.
Investment suggestion: we expect the net profit of the company from 2022 to 2024 to be 462 million yuan, 597 million yuan and 767 million yuan respectively, maintaining the Buy-A investment rating.
Risk warning: R & D is not as expected; The landing of raised investment projects is less than expected; The macro environment is less than expected
