\u3000\u3 China Vanke Co.Ltd(000002) 643 Valiant Co.Ltd(002643) )
Event 1: on March 25, the company released its 2021 annual report. In 2021, 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 parent company was 627 million yuan, a year-on-year increase of 24.16%. Among them, Q4 in 2021 achieved an operating revenue of 1.133 billion yuan and a net profit attributable to the parent company of 134 million yuan.
Event 2: on March 25, the company announced the performance forecast of 2022q1. It is expected that the company will realize a net profit attributable to the parent company of 210250 million yuan in 2022q1, with a year-on-year increase of 59.38% – 89.74% and a month-on-month increase of 56.72% – 86.57%.
Event 3: on March 25, the company announced that it planned to invest about 1.8 billion yuan in the phase I construction project of energy-saving Wanrun (Penglai) new materials in the construction of Penglai Chemical Industrial Park in Shandong Province through its wholly-owned subsidiary, China energy conservation Wanrun (Penglai) new materials Co., Ltd. The project will add 1150 T / a capacity of electronic information materials, 6500 T / a capacity of special engineering materials and 250 t / a capacity of new energy materials. The project is expected to be completed within 24 months after approval, and it is expected to reach full production in the fourth year after the completion of the project.
Comments:
The capacity of functional materials and big health business was released to promote performance growth. Benefiting from the production of 4000 T / a zeolite and other new production capacity and the improvement of the utilization rate of the original production capacity, combined with the rise of the price of relevant products, the revenue of the company’s main products increased significantly in 2021. In 2021, the company’s functional materials achieved an operating revenue of 2.749 billion yuan, a year-on-year increase of 20.49%. In 2021, the average sales price of functional materials of the company was about 386000 yuan / ton, an increase of about 7.8% year-on-year. In 2021, the company’s two ZB series vehicle zeolite production workshops will be ready for use in 2021h1 and 2021h2 respectively, with a new zeolite production capacity of 4000 tons / year. In addition, the company also built and put into operation a 55 T / a capacity of electronic information materials in 2021, which is expected to alleviate the problem of insufficient capacity of electronic information materials to a certain extent. In terms of big health business, the company’s big health business achieved a revenue of 1.572 billion yuan in 2021, a year-on-year increase of 156.17%. The substantial growth of the company’s big health business revenue is mainly due to two points. First, the covid-19 antigen rapid detection kit products of overseas wholly-owned subsidiary mpbiomedicals, LLC acquired by the company in 2020 began to be sold, which promoted the significant year-on-year growth of MP’s performance in 2021. MP company achieved a revenue of 1.395 billion yuan in 2021, a year-on-year increase of 181%, and a net profit of 143 million yuan, a year-on-year increase of 107%. Second, in 2021, the capacity and utilization rate of the company’s major health business increased significantly, and the sales volume increased by 86.0% year-on-year. However, due to the relatively low gross profit margin of covid-19 antigen rapid detection kit products of MP company and the impact of rising raw material costs, the gross profit margin of the company’s major health business in 2021 was about 26.5%, a year-on-year decrease of 18.8pct. In Q1 2022, benefiting from the large amount of covid-19 antigen rapid detection kit products of MP company and functional materials of the company, the net profit attributable to the parent company in Q1 2022 also increased significantly.
Expand the company’s product types and production capacity on a large scale, and comprehensively enhance the company’s comprehensive strength. At present, the company’s capacity of functional materials is 13725 tons / year, and the capacity under construction is 640 tons / year; The capacity of big health products is 210 tons / year, and the capacity under construction is 100 tons / year. In terms of new planned capacity, the company’s new capacity projects involve many hot fields, such as semiconductors, liquid crystal displays, special engineering materials, new energy and so on. The synchronous development of various products and production capacity is inseparable from the company’s continuous high R & D investment. In 2021, the company’s R & D investment reached 294 million yuan, accounting for 6.75% of its revenue. In addition to the above phase I construction project of cecep Wanrun (Penglai) new materials, the company plans to build a series of photoresist resin products with an annual output of 65 tons in 2021, and plans to use the existing idle plants and equipment to produce four series of photoresist products. At present, the project has been approved by the EIA and is being actively promoted. In terms of polyimide finished materials in the field of electronics and display, the polyimide finished materials with independent intellectual property rights of March technology, the holding subsidiary of the company, have been verified and supplied by downstream customers. In the future, with the full production of the company’s above-mentioned new capacity, the company will make great progress in many fields such as semiconductors, display panels and new energy.
Profit forecast, valuation and rating: the company’s performance in 2021 is slightly lower than expected. We temporarily do not consider the performance increment brought by the company’s relevant new capacity projects. At the same time, considering that there is still a certain pressure on the company’s raw material cost, we slightly reduce the company’s profit forecast for 20222023 and add the profit forecast for 2024. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 8.04 (down 7.1%) / 9.89 (down 9.0%) / 1.124 billion yuan respectively, and the converted EPS will be 0.86/1.06/1.21 yuan / share respectively, corresponding to about 22 times of PE in 2022. We are still optimistic about the rapid growth of the company’s new and planned capacity in the future, and still maintain the “buy” rating of the company.
Risk tips: the global epidemic fluctuates, the price of raw materials fluctuates, the capacity construction is less than expected, the product R & D risk and the customer import are less than expected.
