\u3000\u3 Shengda Resources Co.Ltd(000603) 806 Hangzhou First Applied Material Co.Ltd(603806) )
Key investment points
Event: the company released its annual report for 2021, and achieved a revenue of 12.858 billion yuan, a year-on-year increase of 53.20%; The net profit attributable to the parent company was 2.197 billion yuan, a year-on-year increase of 40.35%; Deduct non net profit of RMB 2.140 billion, with a year-on-year increase of 40.67%; EPS2. 35 yuan.
The profit was repaired in the fourth quarter, the annual production and sales and revenue maintained a high increase, and the profit of photovoltaic adhesive film unit reached a new high. The company’s gross profit margin fell slightly in the third quarter, due to the sharp rise in EVA particle price. The price of raw materials fell slightly in the fourth quarter and the rise in the price of the company’s adhesive film brought about a rebound in profits. The profit in a single quarter hit a new high in the whole year: the comprehensive gross profit margin increased by about 11pp to 29.94% month on month, and the net profit margin increased by about 8pp to 21.89% month on month. The annual sales volume of photovoltaic adhesive film of the company was 968 million square meters, with a year-on-year increase of 11.85%; The annual average sales price was 11.89 yuan / flat, with a year-on-year increase of 36%; With the increase of volume and price, the revenue of adhesive film maintained a high-speed growth, with an annual revenue of 11.509 billion yuan, a year-on-year increase of 52.2%. During the 21 years, the company’s expense rate continued to decline to 4.77%, which also contributed to the profit. We expect the annual single average net profit to be about 2 yuan, with a year-on-year increase of more than 25%.
The photosensitive dry film is in rapid volume, and the business of electronics and new materials is booming. In 2021, the company’s shipments of electronic materials exceeded 100 million square meters, and the sales volume increased by 136.79% year-on-year,. In the electronic materials business, the sales volume of photosensitive dry film is 103 million square meters and the revenue is 446 million yuan, which is used in batches in Shennan Circuits Co.Ltd(002916) , Shenzhen Kinwong Electronic Co.Ltd(603228) , Aoshikang Technology Co.Ltd(002913) and other large PCB enterprises in China; At the same time, the sales of medium and high-end products such as semi high sensitivity photosensitive dry film, soft board dry film and carrier dry film will be promoted to optimize the product structure of photosensitive dry film. FCCL (flexible copper clad laminate) has formed a stable shipment every month; The first phase of 20 million flat expansion project of aluminum-plastic composite membrane has been completed, and many models have been sold in batches. In the future, it is planned to expand downstream applications to the field of power batteries and energy storage.
The capacity expansion continued to advance steadily. By the end of the year, the production capacity of photovoltaic adhesive film is expected to reach more than 1.7 billion square meters, ensuring the company’s future shipment and leading market share. Jiaxing Pingguang Film Co., Ltd. has accelerated the production of Chuzhou Pingguang Film Co., Ltd. with a production capacity of RMB 0.3 billion and a production capacity of RMB 0.2 billion in 2022, and strive to increase the production capacity of Chuzhou Pingguang Film Co., Ltd. with a production capacity of RMB 0.5 billion in 2022. With the commissioning of the 500 million square meter project in Chuzhou and the 250 million square meter project in Jiaxing, the company’s photovoltaic film production capacity is expected to exceed 1.7 billion square meters by the end of 22, effectively ensuring the shipment volume and absolute leading position.
Profit forecast and investment suggestions: the company’s photovoltaic film production capacity has expanded steadily to ensure future shipments. The electronic material business has entered a rapid and large-scale stage, becoming a new point of the company’s performance. We expect that the net profit attributable to the parent company will maintain a compound growth rate of 22.29% in the next three years and maintain the “hold” rating.
Risk warning: the risk that the global PV installation is less than expected; The risk that the company’s capacity investment and construction is less than expected; The risk of rising raw material costs and declining profitability of the company; Risks of policy changes.
