\u3000\u3 Shengda Resources Co.Ltd(000603) 806 Hangzhou First Applied Material Co.Ltd(603806) )
Event: the company released its annual report for 2021. In 2021, it realized an operating revenue of 12.858 billion yuan, a year-on-year increase of 53.20%, and a net profit attributable to the parent company of 2.197 billion yuan, a year-on-year increase of 40.35%; It is proposed to distribute a cash dividend of 0.35 yuan (including tax) per share and increase 0.4 shares. In 2021q4, the company achieved an operating revenue of 3.928 billion yuan, a year-on-year increase of 34.35%, and a net profit attributable to the parent company of 860 million yuan, a year-on-year increase of 24.01%.
The gross profit margin of 2021q4 adhesive film has been significantly improved, the leading position is stable, and the profitability is guaranteed to be leading in the industry.
(1) in terms of photovoltaic adhesive film, in 2021, the company sold 968 million square meters of photovoltaic adhesive film (year-on-year + 12%), and the average sales unit price (excluding tax) was 11.89 yuan / square meter (year-on-year + 36%). Under the action of both volume and price, the company's photovoltaic adhesive film segment realized an operating revenue of 11.5 billion yuan (year-on-year + 52%). In terms of profitability, the rapid rise of EVA particle price in the first three quarters of 2021 combined with the flat or even slight decline of adhesive film price put pressure on the company's profitability, but the decline of 2021q4 particle price combined with the tightening of supply and demand situation promoted the increase of adhesive film price, and the overall gross profit margin of the company increased significantly by 11.14 PCT from 18.80% in 2021q3 to 29.94% in 2021q4.
(2) in terms of backplane, in 2021, the company sold 68.22 million square meters of photovoltaic backplane (year-on-year + 19%), realized an operating revenue of 726 million yuan (year-on-year + 30%), and the gross profit margin decreased by 7.31 PCT to 13.19% year-on-year under the background of the increase of raw material price (after excluding the reclassification of sales freight, it decreased by 6.48 PCT year-on-year).
(3) in terms of photosensitive dry film, in 2021, the company sold 103 million square meters of photosensitive dry film (year-on-year + 137%), realized an operating revenue of 446 million yuan (year-on-year + 143%), and the gross profit margin was basically the same year-on-year (after excluding the reclassification of sales freight); With the 20000 t / a acrylic resin phase I project of Anji base put into operation, it will effectively improve the stability of the quality of core raw materials and further improve the profitability of the company's photosensitive dry film business in the future. The production capacity of adhesive film continues to expand, and the development prospect of photosensitive dry film and other new materials is broad. (1) In the future, the steady implementation of Chuzhou (with an annual output of 500 million square meters), Jiaxing (with an annual output of 250 million square meters) and Thailand phase II (about 100 million square meters) projects will ensure the further expansion of the company's capacity advantages of Poe adhesive film and white EVA adhesive film. (2) The company is actively preparing for the construction of Guangdong Jiangmen photosensitive dry film project with an annual output of 420 million square meters and the alkali soluble resin project with an annual output of 24000 tons, so as to realize the further localization and substitution of photosensitive dry film. (3) The company's aluminum-plastic composite film has completed the first phase of the 20 million square meter production expansion project, and plans to further expand its business to the field of power batteries and energy storage in the future; In addition, the company is actively promoting the expansion of FCCL production, customer verification and new field expansion of photosensitive coating film, installation and commissioning of water treatment film support materials and equipment and customer verification.
Maintain the "buy" rating: according to the company's capacity expansion and new business progress, we raised the profit forecast for 22 / 23 years and added the profit forecast for 24 years. It is expected that the company's net profit attributable to the parent company in 22-24 years will be RMB 2.692/33.61/3.842 billion (up 17% / up 27% / new), corresponding to eps2 83 / 3.53 / 4.04 yuan. The current share price corresponds to 44 / 35 / 31 times of PE in 22-24 years. As the absolute leader of the adhesive film industry, the company's advantages in capital, scale and technology are expected to further improve the market share of the company. At the same time, the capacity expansion and product diversification of the electronic materials business are expected to bring new performance growth points to the company and maintain the "buy" rating.
Risk warning: the installed capacity of photovoltaic is less than expected; The risk of market share decline due to intensified competition; The development of new business of electronic materials is less than expected; Risk of raw material price fluctuation, etc
