\u3000\u3 Shengda Resources Co.Ltd(000603) 806 Hangzhou First Applied Material Co.Ltd(603806) )
Event description
The company released the annual report of 2021. During the reporting period, the company achieved an operating revenue of 12.858 billion yuan, a year-on-year increase of 53.20%, a net profit attributable to the parent of 2.197 billion yuan, a year-on-year increase of 40.35%, and a net profit not attributable to the parent of 2.140 billion yuan, a year-on-year increase of 40.67%; Among them, Q4 achieved an operating revenue of 3.928 billion yuan in a single quarter, 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 + 24.019%, exceeding market expectations.
Event comments
During this period, the expenses were well controlled, and the gross profit margin hit the bottom and rebounded. During the reporting period, the company’s expense ratio was 4.77%, a year-on-year decrease of 1.83pct; The gross profit margin of sales was 25.05%, a year-on-year decrease of 3.92pct, of which the gross profit margin of Q4 in a single quarter was 29.94%, a year-on-year decrease of 5.50pct and a month on month increase of 11.14pct, showing a bottom recovery trend. This is mainly due to the decline of q4eva particle price and the rise of product price caused by the tight supply and demand of adhesive film.
The amount of photovoltaic adhesive film has increased rapidly, expanding production and consolidating its leading position. During the reporting period, the company sold 968 million square meters of photovoltaic adhesive film, with a year-on-year increase of + 11.91%, and the average sales unit price (excluding tax) was 11.89 yuan / square meter, with a year-on-year increase of + 36.08%. In addition, the company sold 682214 million square meters of photovoltaic backplane, with a year-on-year increase of + 19.43%. Benefiting from the decline of EVA particle price, the company’s overall gross profit margin increased from 18.80% of Q3 to 29.94% of Q4. During the reporting period, the company successfully promoted the projects of 500 million square meters of photovoltaic adhesive film in Chuzhou, 250 million square meters of photovoltaic adhesive film in Jiaxing, technical transformation of white EVA adhesive film with an annual output of 250 million square meters, and Poe packaging adhesive film with an annual output of 200 million square meters. It is expected that the company will continue to increase the production capacity of photovoltaic adhesive film by Shenzhen Jt Automation Equipment Co.Ltd(300400) million square meters in 2022, and the production capacity will reach about 1.7 billion square meters by the end of 2022.
Electronic materials continue to increase, and product categories are gradually enriched. During the reporting period, the company sold 1032982 million square meters of photosensitive dry film, with a year-on-year increase of + 136.79%, entering the stage of rapid volume, and the proportion of direct sales of products and the proportion of LDI dry film shipments of mid-range products increased. At present, the company FCCL has achieved small-scale sales, the sample delivery test results of photosensitive coating film are good, and the product categories of electronic materials are further enriched, which is expected to bring a new growth pole to the company’s performance.
Investment advice
It is estimated that the company’s EPS from 2022 to 2024 will be 3.33 3.83 4.54 respectively, corresponding to the company’s closing price of 124.90 yuan on March 17, and the PE from 2022 to 2024 will be 37.51 32.61 27.51 respectively, maintaining the “buy” rating.
Risk tips
Price fluctuation risk of products and raw materials; Risk of changes in industrial policies; Demand fluctuation risk, etc.
