\u3000\u3 China Vanke Co.Ltd(000002) 643 Valiant Co.Ltd(002643) )
Event:
On the evening of March 25, Valiant Co.Ltd(002643) released the 2021 annual report. During the reporting period, the company achieved an operating revenue of 4.359 billion yuan, a year-on-year increase of 49.36%; The net profit attributable to the shareholders of the listed company was 627 million yuan, a year-on-year increase of 24.16%.
Key investment points:
The existing business and projects under research in the functional materials sector were promoted in an orderly manner to promote the sustainable development of the company: in terms of the existing main business, the company's liquid crystal material business continued to operate steadily during the reporting period, and the position of the industry's leading supplier of high-end liquid crystal monomer materials was stable; In terms of OLED materials, the performance of the subsidiary Jiumu chemical before sublimation reached a new high, and the market share tended to increase. In March, the technology finished OLED materials successfully passed the verification of downstream customers and began to be supplied during the reporting period, and the finished OLED materials officially entered the harvest period. In the second half of 2021, the new functional material production workshop in phase I of Wanrun Industrial Park has been put into use, and the problem of insufficient capacity of electronic information materials such as follow-up display materials will be gradually alleviated. In terms of environmental protection materials, the company's production technology of zeolite series environmental protection materials is internationally leading. Driven by the strengthening of global awareness of energy conservation and emission reduction and the formal implementation of China's six national standards, the demand and production and marketing level of zeolite series environmental protection materials continued to increase. During the reporting period, the company added two zeolite molecular sieve production workshops with a total capacity of 4000 tons / year. In the whole year, the company's functional materials sector achieved a total operating revenue of 2.749 billion yuan, a year-on-year increase of 20.49%; The gross profit margin of the sector was 42.12%, down 2.80% year-on-year. The main reasons for the decline in the profitability of the sector are the price fluctuation of raw materials and exchange rate fluctuation. In terms of research business, polyimide monomer materials of the company have achieved basic coverage of high-end products; The finished polyimide materials have been verified by downstream customers and have been supplied; Photoresist monomer and photoresist resin have also achieved basic coverage of main products. At present, the project of photoresist resin series products with an annual output of 65 tons is being actively promoted; In addition, the company's electrolyte additive materials for new energy batteries have also entered the stage of product supply and capacity expansion. In the future, as the projects under research enter the harvest period one after another, the product structure of the company's functional materials sector will become more diversified, which will help the company enhance its core competitiveness and promote the company to achieve high-quality sustainable development.
Domestic and overseas go hand in hand, and the revenue of big health products increases rapidly: the covid-19 antigen rapid detection kit products of MP company, an overseas subsidiary of the company, were successfully registered in Europe, Australia and other regions and countries during the reporting period, and began to be sold from the third quarter, and the sales situation is good. Norfloxacin Capsules of Wanrun pharmaceutical, a wholly-owned subsidiary in China, have successfully entered the national centralized procurement catalogue. In addition, viagliptin tablets and olmesartan axetil tablets have obtained registration approvals respectively, and other APIs and intermediates have developed synchronously and continuously. Both at home and abroad kept pace. During the reporting period, the company's major health products still maintained a rapid growth, with a total annual operating revenue of 1.572 billion yuan, a year-on-year increase of 156.17%; However, the gross profit margin of the sector fell to 26.50%, down 18.73% year-on-year. The main reason is that covid-19 kits with low gross profit level were sold in large quantities in the second half of the year, and the business structure of the sector changed. Under the background that China has begun to promote covid-19 family self-test kits in succession, MP company set up a subsidiary of mopu biology in Yantai during the reporting period, which will help to realize the localized sales of covid-19 test kits in the future. The production capacity of pharmaceutical workshops in the first phase of the pharmaceutical park has been improved, and the current production capacity of pharmaceutical products in the first phase of the pharmaceutical park will be put into operation, and the new GMP products will be put into use one after another. Subsequently, with the large-scale sales of covid-19 kit and the capacity expansion of pharmaceutical products, it is expected that the company's big health business is expected to continue to maintain high performance growth in 2022.
The sales volume of main business increased, and the performance of 2022q1 exceeded the expected growth: the company expects to realize a net profit of 210250 million yuan attributable to the shareholders of the listed company in the first quarter of 2022, with a year-on-year increase of 59.38% - 89.74%. The main performance growth points are as follows: 1 The sales volume of covid-19 antigen rapid detection kit increased year-on-year; 2. The new production capacity of functional materials was put into operation, and the product sales increased year-on-year.
Profit forecast and investment suggestion: it is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 822 / 978 / 1146 million respectively, and the P / E corresponding to the closing price of RMB 18.88 on March 25 will be 21.4 / 18.0 / 15.3 respectively. Considering that the company's price and valuation level have been relatively underestimated, we raised the rating to "buy".
Risk factors: the domestic substitution of OLED terminal materials is less than expected, the profitability of liquid crystal materials is declining, the implementation of national six year plan is less than expected, the demand for zeolite molecular sieve is less than expected, and the research progress of other functional materials is less than expected.
