\u3000\u3 Shengda Resources Co.Ltd(000603) 055 Zhe Jiang Taihua New Material Co.Ltd(603055) )
Matters:
Company announcement: in 2021, the company realized an operating revenue of 4.265 billion yuan, an increase of 70.5% over the same period of last year; The net profit attributable to the shareholders of the listed company was 465 million yuan, an increase of 288.0% over the same period last year; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 446 million yuan, an increase of 363.3% over the same period of last year.
Guoxin textile and clothing view: 1) annual performance: revenue increased by 70.5%, slightly higher than expected, high gross margin differentiated filament production capacity was released, and net profit increased by 288%; 2) Performance in the fourth quarter: revenue increased by 44%, net profit increased by 221%, and asset liability ratio was healthy; 3) Investment suggestion: excellent competitiveness, optimistic about the contribution of the company's capacity expansion and upgrading to long-term growth, and maintain the "buy" rating. The demand of nylon 66 and renewable filament industry is about to enter a period of rapid development. With deep technical barriers and significant first mover advantages, the company has quickly arranged differentiated production capacity construction. In 2021, the company's 120000 tons of differentiated filament production capacity climbed as expected to contribute to the high growth of revenue and profit. At present, the company's orders are good, and the utilization rate of filament production capacity is close to full production. We continue to be optimistic about the steady growth of net profit in 2022 and the contribution of Huai'an phase 1 new production capacity to the performance in 2023. We maintain the profit forecast. It is estimated that the net profit of the company from 2021 to 2023 will be 4.6/6.0/890 million yuan, with a year-on-year increase of 288% / 29% / 49%, and EPS will be 0.56/0.72/1.07 yuan respectively. Corresponding to 19-20x PE in 2023, it will maintain a reasonable valuation of 20.3-21.4 yuan and maintain the "buy" rating.
Comments:
Annual performance: revenue increased by 70.5%, slightly exceeding expectations, high gross margin differentiated filament production capacity was released, and net profit increased by 288%
In 2021, the company achieved a revenue of 4.26 billion yuan, a year-on-year increase of 70.5%, and a net profit attributable to the parent company of 465 million yuan, a year-on-year increase of 288%. The company's revenue growth slightly exceeded our previous expectation of 4.16 billion, mainly due to the good climbing progress of the new production capacity of 120000 tons of differentiated nylon filament started in 2019. According to our latest profit forecast, the production capacity of 120000 tons of differentiated filament is expected to climb by about 60% in 2021, and the annual revenue of nylon filament is expected to reach about 2.16 billion yuan, a year-on-year increase of 157%.
We expect the company's gross profit margin to be 26.1% in 2021, + 4.3p p. , mainly contributed by the increase in the proportion of differentiated filament production capacity with high gross margin and the recovery of grey fabric and fabric production capacity utilization. Driven by the improvement of gross profit margin and the optimization of expense rate, the company's operating profit margin / parent net profit margin in 2021 were 12.1% / 10.9%, + 6.9p p./+6.3p. p.。 At the same time, the company has a good profit turnover capacity, with a weighted average roe of 14.2%, + 9.7p p
Performance in the fourth quarter: revenue increased by 44%, net profit increased by 221%, and asset liability ratio was healthy
In the fourth quarter of 2021, the company achieved a revenue of 1.2 billion yuan, a year-on-year increase of 44%, and a net profit attributable to the parent company of 87 million yuan, a year-on-year increase of 221%. According to our estimate, the gross profit margin in the fourth quarter is 25.2%, + 8.7p p.。 In the fourth quarter, the operating profit margin / net interest rate attributable to the parent company was 6.9% / 7.3%, respectively + 3.6p p./+4.6p. p.。 The asset liability ratio at the end of the fourth quarter was 42.4%, with a month on month ratio of - 2.4 / - 2.5P respectively in the third quarter and year on year p. To maintain a healthy level.
Investment suggestion: excellent competitiveness, optimistic about the contribution of the company's capacity expansion and upgrading to long-term growth, and maintain the "buy" rating
The demand of nylon 66 and renewable filament industry is about to enter a period of rapid development. With deep technical barriers and significant first mover advantages, the company has quickly arranged differentiated production capacity construction. In 2021, the company's 120000 tons of differentiated filament production capacity climbed as expected to contribute to the high growth of revenue and profit. At present, the company's orders are good, and the utilization rate of filament production capacity is close to full production. We continue to be optimistic about the steady growth of net profit in 2022 and the contribution of Huai'an phase 1 new production capacity to the performance in 2023. We maintain the profit forecast. It is estimated that the net profit of the company from 2021 to 2023 will be 4.6/6.0/890 million yuan, with a year-on-year increase of 288% / 29% / 49%, and EPS will be 0.56/0.72/1.07 yuan respectively. Corresponding to 19-20x PE in 2023, it will maintain a reasonable valuation of 20.3-21.4 yuan and maintain the "buy" rating.
Risk tips
\u3000\u30001. Macro environment fluctuation; 2. Declining demand; 3. Deterioration of competition pattern; 4. Price fluctuation of raw materials; 5. Market systemic risk.
