\u3000\u3 China Vanke Co.Ltd(000002) 643 Valiant Co.Ltd(002643) )
Event: on March 26, 2022, Valiant Co.Ltd(002643) released the annual report of 2021: the operating revenue was 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%; The weighted average return on net assets was 11.73%, an increase of 1.50 percentage points year-on-year. The gross profit margin of sales was 36.49%, a year-on-year decrease of 8.39 percentage points; The net profit margin of sales was 15.83%, a year-on-year decrease of 3.06 percentage points.
Among them, Q4 achieved a revenue of 1.133 billion yuan in 2021, a year-on-year increase of + 17.05% and a month on month increase of – 19.93%; The net profit attributable to the parent company was 134 million yuan, with a year-on-year increase of – 14.14% and a month on month increase of – 29.95%; The weighted average return on net assets was 2.42%, a year-on-year decrease of 0.67 percentage points and a month on month decrease of 1.15 percentage points. The gross profit margin of sales was 36.09%, a year-on-year decrease of 11.12 percentage points and a month on month increase of 3.30 percentage points; The net sales interest rate was 13.25%, a year-on-year decrease of 3.59 percentage points and a month on month decrease of 1.26 percentage points.
At the same time, the company released the performance forecast for the first quarter of 2022. It is expected that the company will realize a net profit of 210250 million yuan attributable to shareholders of Listed Companies in the first quarter of 2022, with a year-on-year increase of 59.38% – 89.74%.
Comments:
Functional materials and large health sectors have made concerted efforts, and the company’s performance has reached a new high
In 2021, the company’s performance reached a record high, of which the annual operating revenue was 4.359 billion yuan, a year-on-year increase of 49.36%; The net profit attributable to the parent company was 627 million yuan, a year-on-year increase of 24.16%. The high growth of performance is mainly due to the steady development of the company’s functional materials sector and the rapid improvement of the big health products sector. In 2021, the functional materials sector achieved a revenue of 2.749 billion yuan, a year-on-year increase of 20.49%; The gross profit was 1.158 billion yuan, a year-on-year increase of 12.98%; The sales volume reached 7129 tons, a year-on-year increase of 11.79%. The revenue of big health products reached 1.572 billion yuan, a year-on-year increase of 156.17%; The gross profit was 417 million yuan, a year-on-year increase of 50.08%; The sales volume reached 199 tons, with a year-on-year increase of 85.98%.
At the same time, benefiting from the year-on-year growth in the sales of functional materials in the first quarter of 2022 and the year-on-year growth in the sales of overseas subsidiary mpbiomedicals covid-19 antigen detection kit products in the first quarter of 2022, Q1 company’s performance still maintained a rapid growth in 2022, and it is expected to realize a net profit attributable to the parent company of RMB 210 million-250 million, a year-on-year increase of 59.38% – 89.74%. In terms of period expenses, the ratio of sales / management / financial expenses of the company in 2021 was 2.96% / 13.81% / 0.95% respectively, and the change over the same period last year was -0.93% / – 2.63% / – 0.97% respectively. The expenses were well controlled; Meanwhile, in 2021, the net cash flow from the company’s operating activities reached 1.045 billion yuan, an increase of 87.01% year-on-year, mainly due to the increase in profits in the current period and the prepayment business of some customers.
The functional materials sector has developed steadily, and the OLED business continues to develop
At present, the company’s functional materials mainly include liquid crystal materials, OLED materials and zeolite series environmental protection materials. During the reporting period, the downstream demand for liquid crystal materials was good, and the company continued to maintain its position as the world’s leading supplier of high-end liquid crystal monomer materials. In terms of OLED, the subsidiary of March technology has verified and supplied the finished OLED materials with independent intellectual property rights through downstream customers, and the revenue scale is growing. Among them, the revenue in 2021 was 342528 million yuan, a year-on-year increase of 95.14%; Another subsidiary, Jiumu chemical, launched the “OLED display materials and other functional materials project” in Yantai Chemical Park during the reporting period to further consolidate its dominant position in the material business before OLED sublimation and improve the market share of products. Among them, Jiumu chemical achieved a revenue of 525 million yuan in 2021, with a year-on-year increase of 32.32%. At the same time, the company’s new functional material workshop (B01 workshop) located in phase I of Wanrun Industrial Park was also put into use in the second half of 2021, which alleviated the problem of insufficient capacity of the company’s electronic information materials to a certain extent and escorted the steady development of the company’s functional material sector.
Actively layout new fields such as polyimide and photoresist, and the company is expected to meet new performance growth points
In addition to liquid crystal materials and OLED materials, the company also actively distributes polyimide materials, photoresist materials, electrolyte additives for new energy batteries and other fields, and continues to enrich the company’s functional material production line. In terms of polyimide, the finished polyimide materials with independent intellectual property rights of the company have been verified and supplied by downstream customers; Meanwhile, in March 2021, the subsidiary March technology also established Yantai March technology company, which is mainly engaged in the technical R & D, production and sales of new materials such as polyimide, laying the foundation for the sustainable development of the company’s finished polyimide materials. In terms of photoresist, in order to cope with the rapid development of photoresist market, the company launched the “65 ton annual photoresist resin series product project” in 2021. At present, it is in the stage of active promotion. Meanwhile, on March 26, 2022, the company announced that it plans to invest 1.805 billion yuan to build Wanrun (Penglai) new material phase I project, including 1150 tons / year of electronic information materials (polyimide monomer materials for electronics and display, cleaning agent additive materials for semiconductor process, liquid crystal monomer materials for display, etc.), 6500 tons / year of special engineering materials (thermoplastic polyimide materials, auxiliary materials for engineering coating, etc.) And 250 tons / year new energy materials (electrolyte additives). The project is expected to be completed in 24 months. After it is fully completed, it is expected to achieve a revenue of 1.75 billion yuan and a net profit of about 310 million yuan. In the future, as the company continues to invest in technology R & D, process optimization and project construction, the company’s new businesses such as polyimide, photoresist and electrolyte additives will usher in rapid development, which is expected to bring new performance growth points to the development of the company in the future.
The large health sector is developing rapidly, and MP antigen detection products contribute to the performance increment
After years of exploration of the pharmaceutical market and reserves of pharmaceutical technology, the company has successively set foot in many fields, such as pharmaceutical intermediates, patent preparations, APIs, life sciences, in vitro diagnosis and so on. During the reporting period, the company’s big health sector ushered in rapid development. In terms of diagnosis, the overseas subsidiary MP company covid-19 antigen rapid detection kit products were registered and sold in Europe, Australia and other regions and countries, which not only contributed to the global fight against the epidemic, but also brought performance increment to the company. In 2021, MP company achieved a revenue of 1.395 billion yuan, a year-on-year increase of + 180.82%, and a net profit of 143 million yuan, a year-on-year increase of + 107.40%; At the same time, MP company also established Mapu Biotechnology (Shandong) Co., Ltd. in Yantai to provide a strong guarantee for the subsequent MP company to realize product localization. In terms of drugs, Norfloxacin Capsules of Wanrun pharmaceutical, a wholly-owned subsidiary, entered the fourth batch of national centralized drug procurement catalogue; Viagliptin tablets obtained the registration approval according to the new requirements; Olmesartan axetil tablets obtained the production approval; At the same time, the business of API and pharmaceutical intermediates also continued to develop. Meanwhile, the newly-built Pharmaceutical Workshop (B02 workshop) in phase I of Wanrun Industrial Park completed GMP certification during the reporting period, which will effectively alleviate the problem of insufficient production capacity of the company’s pharmaceutical products after it is put into use in the future.
Continue to increase R & D investment and enhance core competitiveness
In recent years, the company has continued to increase R & D investment. In 2021, the company’s R & D expenses reached 295 million yuan, a year-on-year increase of 18.19%, accounting for 6.78% of revenue. The company has always been actively developing new products. By timely mastering the dynamic trend and market demand of the industry, the company cooperates with customers in R & D and technical links on new products, continues to carry out corresponding small-scale and pilot research, and increases investment in pilot links to overcome key technical points, optimize production steps and reduce production costs, so as to provide a strong guarantee for the company’s products to quickly meet market demand. During the reporting period, the company established a new material development branch as the implementation subject to carry out basic research and industrialization technology research on advanced materials, jointly established an electronic information new material joint research and development center with Yantai advanced materials and green manufacturing Shandong laboratory, and jointly established Yantai Branch of State Key Laboratory of fine chemical industry with State Key Laboratory of fine chemical industry, so as to better promote the innovative research and development of new materials of the company. At the same time, the company established a pharmaceutical research institute to provide more favorable R & D support for the development of the company’s pharmaceutical business in the future. In the future, the company will continue to be driven by scientific and technological innovation, actively layout more new fields, strive to achieve more industry-leading positions in the field of new materials, break through more “neck” technical problems, and continue to improve the company’s core competitiveness.
It is estimated that the net profit attributable to the parent company in 2022, 2023 and 2024 will be 902, 1137 and 1423 million yuan respectively, and the EPS will be 0.97, 1.22 and 1.53 yuan / share, corresponding to 19, 15 and 12 times of PE, maintaining the “buy” rating.
Risk warning: the risk of technology replacement; Inventory loss caused by product price fluctuation; Downstream demand is lower than expected; The construction progress of the project is less than expected.
