\u3000\u3 China Vanke Co.Ltd(000002) 838 Shandong Dawn Polymer Co.Ltd(002838) )
The rise in the price of raw materials dragged down the performance of the whole year, but the profit of a single quarter improved significantly month on month
Event: on March 17, 2021, Shandong Dawn Polymer Co.Ltd(002838) ( Shandong Dawn Polymer Co.Ltd(002838) ) released the annual report of 2021: the operating revenue was 4.261 billion yuan, a year-on-year decrease of 3.64%; The net profit attributable to the shareholders of the listed company was 226 million yuan, a year-on-year decrease of 73.55%; The weighted average return on net assets was 10.82%, down 33.63 percentage points year-on-year. The gross profit margin of sales was 12.24%, a year-on-year decrease of 15.51 percentage points; The net sales interest rate was 5.80%, down 13.85 percentage points year-on-year.
Among them, Q4 achieved a revenue of 1.333 billion yuan in 2021, a year-on-year increase of + 19.52% and a month on month increase of + 34.60%; The net profit attributable to the parent company was 77 million yuan, a year-on-year increase of + 2.08% and a month on month increase of + 95.36%; The weighted average return on net assets was 3.75%, down 0.26 percentage points year-on-year and up 1.77 percentage points month on month. The gross profit margin of sales was 12.29%, with a year-on-year increase of 4.92 percentage points and a month on month increase of 1.81 percentage points; The net sales interest rate was 6.12%, a year-on-year decrease of 0.86 percentage points and a month on month increase of 1.76 percentage points. comment:
The price of raw materials rose and the annual performance declined
The company’s performance fell year-on-year. On the one hand, the rise in the volume and price of epidemic prevention materials and meltblown materials in 2020 brought a high performance base to the company. With the effective control of the epidemic, meltblown products have returned to normal, resulting in the decline of the company’s revenue and profit. In 2021, the modified plastic sector where the melt blown material is located achieved a revenue of 3.204 billion yuan, a year-on-year increase of – 10.44%, and a gross profit of 367 million yuan, a year-on-year increase of – 63.2%; The thermoplastic elastomer sector achieved a revenue of 449 million yuan, a year-on-year increase of + 5.52%, and a gross profit of 90 million yuan, a year-on-year increase of – 49.7%; The color masterbatch sector achieved a revenue of 251 million yuan, a year-on-year increase of + 13.17%; The gross profit was 35 million yuan, a year-on-year increase of – 30.0%. On the other hand, the rise in international crude oil prices led to the rise in the prices of main raw materials. According to the company’s annual report, the prices of the company’s main raw materials PP, ABS and PC were 7675 yuan / ton, 15245 yuan / ton and 20405 yuan / ton respectively in 2021. The purchase price of PP decreased slightly by 3.5% year-on-year, and the purchase price of ABS and PC increased by 29.5% and 46.1% year-on-year.
In the reporting period of 2021, the net cash inflow from operating activities was -164 million yuan, a year-on-year decrease of 1.024 billion yuan or 119.1%, mainly due to the decrease in advance receipts and more cash disbursements of the company during the reporting period compared with the same period last year. In 2021, the company received 2.974 billion yuan in cash from selling goods and providing labor services, a year-on-year decrease of 19.5%. There is a big difference between the company’s cash flow from operating activities and net profit in 2021, which is mainly due to the large year-on-year increase in the company’s accounts receivable at the end of 2021, the large cash outflow from operating activities such as purchasing raw materials, and the termination of some melt blown material contracts in 2020 and the return of advance receipts.
Further layout the field of degradable materials and inject new impetus for development
The layout of degradable plastics business injects new impetus into the development of the company
In order to actively respond to the requirements of national green and low-carbon development, the company plans to invest in the construction of 120000 T / a biodegradable resin project, of which phase I includes 60000 T / a PBAT unit, THF recovery unit and supporting utilities. The construction period of the project is 15 months, and it is expected to be put into operation in 2022. On December 25, 2021, the company issued the plan for non-public offering of A-Shares in 2021 (Revised Draft), which plans to raise no more than 772 million yuan through non-public offering of shares, of which 304 million yuan will be used for the construction of phase I of the company’s PBAT project and 238 million yuan for the construction of Southwest headquarters base project (phase I). With the construction and operation of relevant production capacity, it will further enrich the company’s product structure, enhance the company’s competitiveness in the market and inject new impetus into the company’s development.
Sign biodegradable material project agreement and go deep into the layout of industrial chain
On March 11, 2022, the company signed the investment cooperation agreement on biodegradable materials project with Daxin sub district office of Jimo District, Qingdao. It plans to invest 500 million yuan to build dawn biodegradable materials project. The project covers an area of about 100 mu and is constructed in two phases. The construction period of the first phase is 18 months, mainly producing biodegradable raw material particles and catering products. In addition, the company established Shandong dawn degradable materials Co., Ltd., Shandong dawn Zhoushi Packaging Co., Ltd. and dawn Zhoushi composite packaging materials Co., Ltd., forming an integrated layout of the whole industrial chain from the source to degradable products, creating more opportunities for the company’s long-term development and business growth. Orderly and steadily promote Qingdao Haina project, Russian factory, home appliance disassembly green cycle project, degradable PBAT project and Chongqing modified plastic project. Continue to increase R & D investment closely around customer needs
The company has always attached importance to the improvement of R & D investment and its comprehensive R & D strength, adhered to the combination of independent innovation and industry university research, carried out R & D innovation closely around the market and customer needs, and always maintained a high level of R & D investment. In 2021, the company invested 156 million yuan in R & D, accounting for 3.67% of the operating revenue; There are 257 R & D personnel, accounting for 19.32% of the company’s total employees. As of the reporting period, the company has obtained a total of 82 patents and is applying for 94 patents. He has presided over or participated in the formulation of 40 international standards, national standards and industrial standards. At the same time, a senior R & D team has been formed, which keeps pace with the world’s advanced level in the field of new materials from product design, new product experiment to manufacturing and processing, and fully realizes the differentiation and personalization of products
Main work of the company in 2021
Make specialized and excellent products and deepen strategic cooperation
Adhere to making products specialized, quality excellent, market good and brand bright, increase the development and application of new products, new processes and new technologies, and convert scientific research strength into market competitive advantage. Further build image and brand, continuously improve product added value, and create a one-stop material solution supplier for upstream, middle and downstream. We continued to deepen the strategic cooperation with major customers such as Haier, Hisense, Samsung and Panasonic, focused on the marketing layout of 5g and energy storage industry, and realized mass supply. Successfully developed overseas customers, and overseas sales increased significantly. “Industry, University, research and application” are deeply integrated, and new product research and development are increased
Dawn research institute took the lead in organizing and determining the cooperative research and development of a series of project topics such as “new catalyst”, “flame retardant ACS”, “flame retardant transparent coating”, “PLA materials for nonwovens”, “lignocellulose materials”, “carbon fiber composites”, “development and application of degradable materials” and “green recycling and reuse of plastics”. The research and development projects filled the gap of the company and were in the leading position in China. In terms of new product R & D, there were 27 highlights of new product R & D in the year. Optimize management, reduce cost and increase efficiency
With the improvement of quality and efficiency as the core, we continued to carry out special activities such as “cost reduction and efficiency increase”, “lean management” and “excellent performance management”, and achieved remarkable results in the three reduction activities of reducing inventory, costs and expenses. We need efficiency from informatization, complete the construction of BPM system, human system and all-in-one card system, improve the collaborative process and make data statistics more efficient; The construction of WMS storage system and the selection of ERP optimization scheme have been completed, which has injected a strong driving force into the company’s information upgrading, digital transformation, lean management and intelligent manufacturing of its subsidiaries.
Strengthen the control of accounts receivable and inventory, focus on the “setting standards and implementation” of production and marketing balance, collaborative marketing and cost control, and constantly strengthen the operation control and execution strength, so as to continuously and steadily improve the operation quality of the company.
Main work plan of the company in 2022
Achieve a breakthrough, full flowering and coordinated development
Thermoplastic elastomer, modified plastics and color masterbatch have overlapping customer resources. The development of one product often represents the recognition of customers to the company. Give play to the rubber substitution role of TPV and widely explore the market
At present, the company is the largest producer of thermoplastic elastomer TPV in China. Relying on its price advantage and service advantage in TPV products, the company has gradually formed a market substitution for the products of international competitors. Next, TPV will play the role of rubber substitution and accelerate the market occupation of traditional rubber products industry; Promote the import substitution of HNBR in the field of national defense and military industry, and accelerate the application in aerospace, automobile, petroleum and other fields; Fully promote the transformation and implementation of “industry university research” of DVA, accelerate the substitution of halogenated butyl rubber and help the upgrading of tire industry; Accelerate the promotion of tpiir products, realize the substitution of thermosetting brominated butyl rubber and lead the market demand; Give full play to the leading advantages of TPU technology, adopt differentiated product development, and seize the medium and high-end application market. Use the R & D platform to grasp the pulse and explore and innovate
Make full use of the company’s high-level and diversified R & D platform, grasp the pulse of industry development, and continuously develop new products on the basis of continuing to improve the original product technology. On the one hand, enter the high-precision and cutting-edge fields such as medical and health care, oil drilling, aerospace and weapon component seals to accelerate the process of rubber substitution and import substitution of products; On the other hand, we should fully grasp the upgrading trend of automobile, household appliances and other industries, constantly develop new modified plastics products, meet the market demand for continuous improvement of product performance, and make a good layout of modified plastics outside China. On the one hand, accelerate the implementation and operation of degradable materials projects, and do a good job in the technical research and development of degradable materials and the extension of industrial chain. Establish marketing model, improve cognition and promote products
Based on the marketing and service advantages established by many years of operation and the judgment of the future competition pattern of the industry, the company plans to further expand the professional marketing service team, increase marketing and service personnel in major regions, and enhance the strength of marketing and service; Continuously create new value for customers, improve customer loyalty and develop large strategic customers; Strengthen customers’ awareness of the company’s products and promote the promotion of the company’s products by participating in exhibitions, technical exchanges, new product promotion meetings and other forms. The company will further establish and improve the international marketing network, strengthen the cooperation with foreign powerful agents, and improve the regional after-sales service.
Investment advice and profit forecast
It is estimated that the net profit attributable to the parent company in 2022, 2023 and 2024 will be 3.583 billion yuan, 4.213 billion yuan and 5.115 billion yuan respectively, and the EPS will be 0.76, 1.03 and 1.23 yuan / share, corresponding to 22, 16 and 14 times of PE, maintaining the “buy” rating.
Failure to meet the expected progress of new production capacity and environmental protection policies
