\u3000\u3 Shengda Resources Co.Ltd(000603) 186 Zhejiang Wazam New Materials Co.Ltd(603186) )
Core conclusion
Event: the company released the annual report of 2021. During the reporting period, the operating revenue was 3.620 billion yuan, a year-on-year increase of 58.47%, the net profit attributable to the parent was 238 million yuan, a year-on-year increase of 90.24%, the basic earnings per share was 1.68 yuan, and it was proposed to pay 5 yuan (including tax).
The business structure of copper clad laminate continues to be optimized, and the cost pressure of orderly links. The company promoted the expansion of high-quality copper clad laminate production capacity, actively arranged the aluminum-plastic film business, and deepened the implementation of the business strategy of "H1 (mature product line) + H2 (growth product line) + H3 (seed product line)". Among them, the revenue of copper clad laminate business was 2.693 billion yuan, with a year-on-year increase of 79.09%, and the gross profit margin was 15.60%, with a year-on-year increase of 0.12pc. The sales proportion of H2 products in copper clad laminate business further increased, and the product structure further tended to be reasonable; In the cycle of rapid rise in raw material costs, the company improves the dynamic management ability of orders for copper clad laminate business, closely links the upstream and downstream of the industrial chain, enhances the stickiness of strategic customers, improves the synergy of production, procurement and sales, and digests the pressure brought by rising costs; In addition, the high-quality growth of production capacity has improved the supply capacity of high-grade CCL and further improved the company's industry position.
The promotion of strategic new aluminum plastic film business is in line with expectations. The company has steadily promoted the construction of the aluminum-plastic film project for lithium battery packaging with an annual output of 36 million square meters. The progress is in line with expectations. Using the existing production capacity, the company actively carries out market layout, realizes large-scale sales in the fields of consumer electronics and light power, and carries out testing and product development cooperation in some power battery manufacturers. While vigorously promoting project construction and expanding production capacity at a high level, the aluminum plastic film business continues to increase R & D investment and process optimization, and promote the localization of core raw materials. A variety of products have realized the diversified selection of raw materials.
Investment suggestion: we predict that the net profit attributable to the parent company from 2022 to 2024 will be 334, 439 and 529 million yuan, and EPS will be 236, 309 and 3.73 yuan. The current stock price corresponds to 11, 9 and 7xpe, maintaining the "buy" rating of the company.
High speed copper clad sector expansion risk indication; The verification of downstream customers does not meet expectations; Risk of continuous tightening of supply chain.
