\u3000\u3 China Vanke Co.Ltd(000002) 643 Valiant Co.Ltd(002643) )
Valiant Co.Ltd(002643) released the annual report of 2021: the annual operating revenue was 4.359 billion yuan, yoy + 49.36%, and the net profit attributable to the parent company was 627 million yuan, yoy + 24.16%.
The company’s revenue has increased significantly, and the revenue of two core businesses – functional materials and big health products – has increased significantly. In 2021, the company’s revenue from functional materials increased by 20.49% year-on-year to RMB 2.749 billion, and the new production capacity of zeolite products was put into operation; The revenue of big health products increased by 156.17% year-on-year to RMB 1.572 billion, and the sales volume of MP covid-19 antigen rapid detection kit, an overseas subsidiary, increased. The decline in gross profit margin caused the company’s net profit growth to be lower than the revenue growth. The gross profit margin of functional materials decreased by 2.80 percentage points to 42.12%, mainly due to the sharp rise in the price of raw materials; The gross profit margin of big health products decreased by 18.73 percentage points to 26.50%, mainly due to the increase in the proportion of covid-19 antigen detection kit revenue with low gross profit margin.
The company also announced the performance forecast for the first quarter of 2022: the net profit attributable to the parent company is expected to be 210 ~ 250 million yuan, with a year-on-year increase of 59.38 ~ 89.74%. The substantial increase in performance was mainly due to the increase in sales of zeolite materials and the increase in sales of MP covid-19 antigen detection kit, an overseas subsidiary.
The core business functional materials are expected to continue to grow driven by zeolite materials and electronic materials. The company’s functional materials business includes zeolite materials and electronic materials. We believe that both products have good growth prospects. ① Two new projects of zeolite materials of the company have been put into operation at the end of June and August of 202, with a total theoretical capacity of about 4000 tons. At present, the theoretical capacity of zeolite series environmental protection materials of the company is nearly 10000 tons. With the full implementation of the national six emission standards, we expect that the demand for zeolite environmental protection materials for automobile exhaust emission will increase, and the sales volume of the company’s relevant zeolite materials products is expected to continue to grow. ② OLED materials and polyimide materials have great market development potential. The company’s OLED finished materials and polyimide finished materials have been verified and supplied by downstream customers. It is expected that the sales volume is expected to continue to increase in the future.
Invest in new material projects and expand the growth space of the company. The company’s “65 ton annual photoresist resin series product project” is being actively promoted. In the future, the company will continue to develop new products of photoresist materials and enhance product competitiveness. In addition, the company plans to invest 1.805 billion yuan to build Penglai phase I project, which is used to expand the production capacity of the company’s electronic information materials, special engineering materials and new energy materials, including 1150 tons / year of electronic information materials (including polyimide monomer materials for electronics and display, cleaning agent additive materials in semiconductor process, liquid crystal monomer materials for display, etc.), 6500 tons / year of special engineering materials (including thermoplastic polyimide materials, auxiliary materials for engineering coating, etc.) and 250 tons / year of new energy materials (including electrolyte additives, etc.). The company expects the construction cycle to be 24 months. After the project is completed, the company can achieve an average annual revenue of 1.75 billion yuan and a net profit of 310 million yuan. We expect that the continuous construction of new material related projects is expected to expand the company’s long-term growth space.
Profit forecast and investment rating of the company: relying on scientific and technological innovation and technological accumulation and extension in the field of chemical synthesis, the company expands and strengthens existing advantageous products, and actively distributes more new material fields. Based on the company’s 2021 annual report, we adjusted the company’s profit forecast from 2022 to 2024 accordingly. We predict that the net profit of the company from 2022 to 2024 will be 874 million yuan, 1020 million yuan and 1136 million yuan respectively, with corresponding EPS of 0.94, 1.10 and 1.22 yuan respectively, and the corresponding P / E value of current stock price is 20, 17 and 15 times respectively. Maintain a “strongly recommended” rating.
Risk tip: customer orders are declining, the progress of market development is less than expected, and the progress of capacity construction is less than expected.
