\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 237 Anhui Tongfeng Electronics Company Limited(600237) )
Event: the company released its annual report for 2021. In 2021, it realized an operating revenue of 1 billion yuan, a year-on-year increase of 18.06%; The net profit attributable to the parent company was 54.2 billion yuan, a year-on-year increase of 54.2%; The net profit deducted from non parent company was 45 million yuan, with a year-on-year increase of 376.38%.
The compound performance was in line with expectations, and Q4 made a record quarterly profit. Q4 company realized a net profit attributable to its parent company of 17.62 million yuan, a new high in a single quarter. Q4 deduct 12.96 million yuan of net profit not attributable to the parent company, and the non recurring profits and losses are mainly government subsidies. Q4 total provision for asset impairment and credit impairment is 2.56 million yuan, and the net non operating income and expenditure is – 3.83 million yuan. Deducting non operating factors such as impairment and non operating revenue and expenditure, the deduction of non attributable net profit also has a good performance.
The film price increases, profits are restored, and the operation of capacitors is stable. The company’s film business revenue was 3.34 billion yuan, a year-on-year increase of 1.54%; The gross profit margin was 25.10%, with a year-on-year increase of 10.52pp. The sales volume of electronic grade film materials was 17400 tons, with a year-on-year increase of 7.10%. Benefiting from the rise in film prices, revenue increased significantly and profitability improved significantly. The operating income of capacitor business was 398 million yuan, a year-on-year increase of 8.69%; The gross profit margin was 20.60%, with a year-on-year increase of 0.16pp. The operation of capacitor business is stable and the gross profit margin is relatively stable.
New projects are advancing steadily and are expected to contribute revenue in the second half of the year. The six investment projects announced by the company in December 2020 and June 2021 made steady progress. Among them, the ultra-thin film material project for new energy has been filed and evaluated. The main equipment of the first film line of the project is expected to be delivered by the end of 2022, and the main equipment of the second film line has been signed. The filing, safety and environmental assessment and plant reconstruction of the capacitor project for new energy vehicles are in progress. Phase I of the new energy capacitor expansion project has been completed, and phase II equipment is being selected. The capacitor project for DC power grid transmission has been put on record, the main equipment is under selection, and the plant is under design and decoration. The construction of the company’s new projects has been carried out in an orderly manner, and it is expected to contribute to the increase of revenue from the second half of the year.
The salary of employees increased synchronously to fully stimulate the vitality of the company. Since the change of actual controller, the company has implemented a more market-oriented salary system and incentive mechanism. In 2021, the remuneration of senior executives and employees of the company has increased significantly compared with that in 2020, and the production and operation are closer to the market, which is conducive to fully stimulate the vitality of management and grass-roots employees.
Profit forecast and investment suggestions. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 103 million, 175 million and 232 million respectively. The price rise of BOPP film this year contributes to the performance elasticity, and the production volume and price of new lines will rise together next year. In the medium and long term, thin film capacitors will be fully transformed into new energy, with improved revenue and profitability, opening the valuation ceiling. The current market value of the company is 4.2 billion, maintaining the “buy” rating.
Risk tip: the price rise of the film is less than expected; Rising prices of raw materials; The commissioning progress of new projects lags behind; Customer expansion was less than expected.
