\u3000\u3 China Vanke Co.Ltd(000002) 876 Shenzhen Sunnypol Optoelectronics Co.Ltd(002876) )
Event: on the evening of March 17, 2022, Shenzhen Sunnypol Optoelectronics Co.Ltd(002876) released the annual report of 2021. In 2021, the company realized an operating revenue of 2.304 billion yuan, a year-on-year increase of 20.94%; The net profit attributable to the parent company was 338 million yuan, a year-on-year increase of 188.91%; Net profit deducted from non parent company was 305 million yuan, with a year-on-year increase of 218.85%.
Comments: the company’s performance improved steadily in 2021, and the net profit deducted from non parent company increased by about twice. The increase of the selling price of some products led to the increase of net interest rate. Hefei factory’s full production line is linked with Longgang factory’s mass production and ramp up to achieve a large release of production capacity, and the continuous investment in R & D continues to expand the company’s technical advantages; We are optimistic about the company’s production expansion speed. After all production lines are put into operation, it will increase performance flexibility and bring performance growth. At the same time, the production capacity of LCD industry is transferred to the mainland, and the localization of polarizers is the general trend. As the leader of domestic polarizers, the company continues to benefit.
\u3000\u30001. The company’s annual performance in 2021 increased steadily year-on-year, and the net interest rate increased significantly.
In 2021, Hefei, Guangming headquarters, Putian, Fujian and other production lines were in a saturated state. The price of some products increased, and the company realized double increases in price and volume. (1) The annual performance of 2021 increased steadily, and the net profit deducted from non parent company increased by about twice: during the reporting period, the company realized an operating revenue of 2.304 billion yuan, a year-on-year increase of 20.94%; The net profit attributable to the parent company was 338 million yuan, a year-on-year increase of 188.91%; Net profit deducted from non parent company was 305 million yuan, with a year-on-year increase of 218.85%. (2) The selling price of some products of the company has increased, the cost of raw materials has decreased, and the net profit margin has more than doubled: in 2021, the gross profit margin of the company’s sales was 24.99%, and the net profit margin was 15.35%, a year-on-year increase of more than doubled. (3) The company’s 21q4 performance showed a downward trend, and the net profit deducted from non parent decreased by more than 20% year-on-year. 21q4 achieved a revenue of 540 million in a single quarter, a year-on-year decrease of 8.5%; Net profit deducted from non parent company was 47 million, a year-on-year decrease of 21.93%. In 2021, the market demand of the company’s industry was relatively strong, and the increase of volume and price helped the company’s annual performance increase year-on-year.
\u3000\u30002. Hefei capacity release + Longgang capacity volume, the company’s performance shows an upward trend.
Hefei production line full production superimposed Longgang mass production climbing, and the significant release of production capacity led to performance growth. Hefei 1490mm production line and 1330mm production line have steadily supplied large-size flat-panel and TV polarizers since they were completed in large quantities in 2020, with a total production capacity of 16 million square meters, increasing the output by 30.91%. In the second half of 2021, Longgang line has implemented mass production ramp up and achieved a revenue of 61 million yuan. It is expected that the production capacity will reach 10 million square meters and the shipment volume of mobile phone products will reach 450 million. At present, the company still has projects under construction, Hefei polarizer production base phase II project and Putian polarizer production line, which are expected to climb in 2022 and 2024. After all production lines of the company are put into operation, the substantial release of production capacity will bring high growth of performance.
\u3000\u30003. Continuous R & D investment, domestic trend, cost reduction and efficiency increase, and help continuously optimize the product structure.
The company’s R & D investment in 21 years increased by 18.15% year-on-year, promoting the parallel research and development of large and small panels. In 2021, the R & D cost was 103 million yuan, with a year-on-year increase of 18.15%, which was used for the R & D of multiple polarizer projects. At present, the polarizer for 115 micron flexible AMOLED of the company has partially passed the customer test, and similar products have been mass produced in the wearable application in 2021. Through the R & D of jd.com, Huima and other downstream customers, the sales volume of jd.com and Huima is expected to achieve stable growth. With the mid stream panel production capacity gathering to the mainland, the upstream import substitution logic of the panel industry chain represented by polarizers will be strengthened. As a leading enterprise of polarizers in China, the company will continue to grow.
\u3000\u30004. Investment advice
The company has great flexibility in expanding production. We are optimistic that the gradual implementation of production capacity will accelerate the growth of the company’s performance. In the context of the transfer of LCD industry capacity to the mainland, the company continues to benefit from the opportunity of polarizer localization. Taking into account the price fluctuation of small-size panels in the downstream, we adjusted the profit expectation. It is estimated that the company’s net profit in 22-23 years is 440 / 590 million yuan (original value is 480 / 680 million yuan), and the net profit in 2024 is predicted to be 710 million yuan. The target price of the company was adjusted to 60.5 yuan (the original value was 83.1 yuan, corresponding to 22-year pe24x), maintaining the buy rating.
Risk warning: panel price fluctuation; The demand is less than expected; The epidemic control was not as expected; The progress of production expansion projects is less than expected.
