\u3000\u3 China Vanke Co.Ltd(000002) 643 Valiant Co.Ltd(002643) )
Event: Valiant Co.Ltd(002643) released the annual report of 2021. 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 parent company was 627 million yuan, a year-on-year increase of + 24.16%. 21q4 achieved an operating revenue of 1.133 billion yuan, 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 company released the performance forecast for the first quarter of 2022. During the reporting period, it is expected to realize a net profit attributable to the parent company of 210 ~ 250 million yuan, a year-on-year increase of + 59.38 ~ 89.74%.
The company issued the announcement that the wholly-owned subsidiary invested in the new material construction project in Shandong Penglai Chemical Industrial Park. The total investment of the project is planned to be ~ 1.8 billion yuan. After being approved, the construction is expected to be completed in 24 months. It is expected to achieve a net profit of about 310 million yuan in the year when it is fully up to production.
The performance in 21 years was in line with expectations, and the 2q1 forecast exceeded expectations. According to the announcement, in the 21st year, the company’s functional materials and big health sectors achieved revenue of 2.749 billion yuan and 1.572 billion yuan respectively, with a year-on-year increase of + 21% and 156%. In addition to the new increment brought by the conversion of 4000t zeolite, the 21-year revenue of subsidiaries Jiumu and MP was 525 million yuan (year-on-year + 32%), 1.395 billion yuan (year-on-year + 181%), and the net profit was 127 million yuan (year-on-year + 35%) and 143 million yuan (year-on-year + 107%), Among them, the sales of MP covid-19 antigen rapid detection kit products in Europe and Australia contribute greatly to the volume of revenue; The gross profit margins of the two sectors were 42.1% and 26.5% respectively, with a year-on-year increase of – 2.8 and – 18.7pct. In addition to the price rise of raw materials, the lower gross profit margin of MP kit also had an impact on the profit structure; In terms of expenses, the amortization expense of 21q4 equity incentive is ~ 28 million yuan, and the performance is in line with expectations after considering this item. In terms of 22q1 performance, it is announced that the company’s functional material workshop B01 has been put into use in 21h2. With the gradual increase of zeolite production capacity and the year-on-year growth of MP kit sales, the company has made a good start in 22 years. Considering the repeated global epidemic, it may become normal in the short term, the contribution of MP business in the future is worthy of expectation.
The increment of Penglai new material project can be expected, multiple businesses go hand in hand, and the R & D investment remains high. According to the announcement, Penglai new materials project plans to invest 1150 tons / year of electronic information materials, 6500 tons / year of special engineering materials and 250 tons / year of new energy materials, including PI monomers for display, cleaning agent additive materials in semiconductor process, liquid crystal monomers for display, thermoplastic PI and engineering coating additives. The company has been deeply engaged in the electronic display fine chemicals industry for many years and is the leader in the global liquid crystal monomer and OLED sublimation monomer industry, In recent years, Penglai group has made great progress in PR business, and it can be said that Penglai group has made great progress in the future.
In terms of construction in progress, it was announced that the cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets in 21q4 was 250 million yuan, with a year-on-year increase of + 41%, maintaining a high level. The project progress of Jiumu OLED display materials and other functional materials was ~ 48%. The implementation of new factories in the future will alleviate the capacity bottleneck of Jiumu; Phase I pharmaceutical B02 workshop in Wanrun Industrial Park has completed GMP certification in 21 years, with a project progress of 95%, and a large amount of new health products will be put into operation soon; Phase II C01 project (functional materials) of the industrial park has also been started, and the project progress is 20%; The 65t photoresist resin project was also successfully promoted. In terms of R & D, according to the announcement, the company invested 294 million yuan in R & D in 21 years, with a year-on-year increase of + 19%, accounting for 6.8% of revenue. It continued to maintain a high level, with 570 R & D personnel, with a year-on-year increase of + 8%. During this period, the company established a new material development branch and jointly established an electronic information new material joint R & D center with Yantai advanced materials and green manufacturing Shandong laboratory, Yantai Branch of State Key Laboratory of fine chemical industry was established jointly with State Key Laboratory of fine chemical industry, and pharmaceutical research institute was established for pharmaceutical business. For OLED, PI, PR and other products, it has high technical barriers, fast iteration speed and long certification cycle. Compared with overseas advanced energy production, China still has a long way to go. The company’s high-intensity R & D investment will help all businesses continue to improve and compete for “domestic substitution”.
Investment suggestion: we expect the net profit attributable to the parent company from 2022 to 2024 to be 780 million yuan, 1.01 billion yuan and 1.22 billion yuan respectively, maintaining the Buy-A investment rating.
Risk warning: the progress of project construction and operation is less than expected, and the product demand is less than expected.
