\u3000\u3 Shengda Resources Co.Ltd(000603) 078 Jiangyin Jianghua Microelectronics Materials Co.Ltd(603078) )
Key investment points:
Event: the company released its annual report for 2021. In 2021, the company achieved an operating revenue of 772 million yuan, a year-on-year increase of 40.50%, and a net profit attributable to the parent company of 57 million yuan, a year-on-year decrease of 2.90%.
Revenue growth accelerated, Q4 single quarter profit was bright, and the performance inflection point was confirmed. In 2021, the company achieved an operating revenue of 772 million yuan, a year-on-year increase of 40.50%, a net profit attributable to the parent company of 57 million yuan, a year-on-year decrease of 2.90%, and a deduction of non attributable net profit of 53 million yuan, a year-on-year increase of 7.82%. Benefiting from the smooth production of 35000 T / a ultra pure wet electronic chemicals in Jiangyin base, the company’s production capacity increased from 55000 T / A to 90000 T / A, the production and sales increased simultaneously, and the revenue reached a record high. Looking at the fourth quarter alone, the company achieved an operating revenue of 253 million yuan, a year-on-year increase of 62.48% and a month on month increase of 24.02%; The net profit attributable to the parent company was 29 million yuan, an increase of 84.70% year-on-year and 123.07% month on month; The net profit deducted from non parent company was 27 million yuan, with a year-on-year increase of 145.46% and a month on month increase of 107.69%. In the fourth quarter, the single quarter profit showed a bright performance on a month on month basis, and the performance inflection point was further confirmed.
The development strategy is further inclined to semiconductors, and the business pattern is further optimized. In terms of business types, the company’s wet electronic chemicals for semiconductors achieved business of 384 million yuan in 2021, with a year-on-year increase of 81.65% and a gross profit margin of 26.24%. The operation of wet electronic chemicals for panel was 357 million yuan, with a year-on-year increase of 18.31% and a gross profit margin of 19.93%. The company’s revenue of wet electronic chemicals for semiconductors exceeded that of wet electronic chemicals for panels for the first time, indicating that the company’s development strategy is further inclined to the semiconductor industry. The high profit margin of the semiconductor industry helps the company further optimize its business pattern and enhance its profitability.
The raised investment project has entered the capacity release period, and the capacity of Zhenjiang and Meishan provides future performance guarantee. The company has raised funds twice to build Sichuan Meishan 60000 ton / year ultra-high purity wet electronic chemicals project and Jiangsu Zhenjiang 228000 ton / year ultra-high purity wet electronic chemicals, 7000 ton by-product industrial chemicals and recycling project (phase I). Among them, Meishan plant is expected to be put into production at the beginning of the second quarter, the production capacity climb ends in the fourth quarter, and the annual capacity utilization rate is more than 60%. At present, Zhenjiang factory (phase I) has produced qualified G5 wet electronic chemicals on a trial basis. It is expected to officially start production in April and send samples to downstream customers for testing at the same time. With the formal production of Zhenjiang capacity, the company is expected to take the lead in seizing the market share of domestic 12 inch high-end semiconductor wet electronic chemicals, and the company’s performance is about to usher in a rapid rise period.
Profit forecast: we expect the company to achieve operating revenue of RMB 1.583 billion, RMB 1.982 billion and RMB 2.463 billion respectively from 2022 to 2024, and realize net profit attributable to parent company of RMB 164 million, RMB 268 million and RMB 389 million, corresponding to EPS of RMB 0.84, RMB 1.37 and RMB 1.99 respectively. Considering that the Zhenjiang and Meishan projects of the company are about to be put into operation, the performance of the company is flexible, and the high technical barriers of G5 wet electronic chemicals are superimposed, the PE valuation of the company is 43-47 times in 2022. The reasonable market value range in 2022 is 7.052-7.708 billion yuan, and the reasonable stock price range is 36.12-39.48 yuan, maintaining the “recommended” rating of the company.
Risk tip: the price of raw materials fluctuates, power and production restrictions intensify, industry competition intensifies, the project is put into operation less than expected, and the domestic substitution is less than expected.
