\u3000\u3 China Vanke Co.Ltd(000002) 080 Sinoma Science & Technology Co.Ltd(002080) )
Event:
Sinoma Science & Technology Co.Ltd(002080) released the annual report of 2021: the company achieved an annual operating revenue of 20.295 billion yuan, a year-on-year increase of 7.58%; The net profit attributable to shareholders of listed companies was 3.373 billion yuan, a year-on-year increase of 65.4%.
Key investment points:
The net profit increased rapidly and the expense rate continued to decrease during the period. In 2021, the company realized a revenue of 20.295 billion yuan and a net profit of 3.373 billion yuan for shareholders of listed companies, with a year-on-year increase of 7.58% and 65.4% respectively. The three expense rates of the company continued to decline. In 2021, the comprehensive gross profit margin was 30% and the net profit margin was 17.12%, with a year-on-year increase of 2.87 and 6.6 percentage points respectively, the highest level in recent five years.
The volume and price of glass fiber products rise together to ensure the performance basis of the company. In 2021, driven by the double carbon goal, the glass fiber industry ushered in a bumper harvest year. The demand of China Shanxi Guoxin Energy Corporation Limited(600617) automobile, building energy conservation, electronic and electrical appliances and wind power continued to increase. Superimposed on the recovery of overseas demand, the industry maintained a high economic development trend throughout the year, with both volume and price rising. In the long run, the downstream demand of glass fiber, especially the demand for wind power, will maintain a stable growth trend, and the price of coarse sand is expected to remain stable at a high level. Taishan’s annual production capacity of glass fiber is about 1.2 million tons, accounting for the top three in China and the top five in the world. With the increasingly strict requirements of environmental protection, the backward production capacity of glass fiber industry will be gradually cleared. Under the background of double control of energy consumption and double carbon goals, the competitive advantage of industry leaders will be more prominent, the market concentration is expected to be further improved, and the company is expected to benefit from this process.
Technology first to meet the large-scale and seize the absolute market share. In 2021, the bidding price of wind power decreased significantly compared with the same period in 2020, the cost of superimposed raw materials (glass fiber and carbon fiber products) increased, and the supply chain of wind power equipment faced great cost pressure. At present, wind power blades are evolving towards large-scale and offshore trends. Sinoma blades, as the industry leader, take advantage of technical advantages, pay close attention to the offshore wind power market, comprehensively improve product competitiveness and sustainable delivery capacity, and seize the absolute market share.
The release of lithium film capacity is accelerated, and the revenue growth is flexible. At present, the company has a production capacity of more than 1 billion square meters of base film, and has four production bases in Tengzhou, Shandong, Changde, Hunan, Ningxiang, Hunan and Hohhot, Inner Mongolia, covering the mainstream lithium battery customer market at home and abroad. In the future, with the rapid development of new energy vehicles and energy storage batteries, the market demand for lithium battery separator will increase significantly. In order to comply with the industry trend, the company actively expands its advanced production capacity. Tengzhou phase II project is expected to be completed and put into operation in the first half of 2022; At the same time, the company is preparing to build the Nanjing base project, Inner Mongolia phase II and phase III projects and Tengzhou phase III projects, with a total new production capacity of 2.64 billion square meters, of which the Inner Mongolia phase II 320 million square meter project is expected to be completed and put into operation within the year. With the increasing proportion of the company’s advanced production capacity, the manufacturing cost is expected to continue to decline.
Profit forecast and investment rating. The company has three main businesses: glass fiber, wind power blade and lithium film. The glass fiber industry is in a high business cycle. Wind power blade and lithium film are important products in the new energy industry chain and are in a high business cycle. We predict that the company’s net profit attributable to the parent company from 2022 to 2024 will be 4.162 billion yuan, 4.835 billion yuan and 5.674 billion yuan respectively, with corresponding EPS of 2.48 yuan, 2.88 yuan and 3.38 yuan respectively, and corresponding PE of 10.51x, 9.05x and 7.71x, maintaining the “buy” rating.
Risk warning. The market demand of glass fiber is less than expected; The price change of glass fiber is less than expected; The company’s wind power blade production capacity and production progress did not meet expectations; The production capacity of lithium film company is not up to the expected schedule; The epidemic has repeatedly affected the economy; Adverse changes have taken place in the macro environment.
