\u3000\u3 Shengda Resources Co.Ltd(000603) 212 Cybrid Technologies Inc(603212) )
Event: on March 29, 2022, the company released its annual report for 2021, with annual revenue of 3.017 billion yuan, a year-on-year increase of 38.25%; The net profit attributable to the parent company was 170 million yuan, a year-on-year decrease of 12.36%; Net profit deducted from non parent company was 166 million yuan, a year-on-year decrease of 7.05%; The basic earnings per share is 0.42 yuan. Among them, 2021q4 achieved a revenue of 925 million yuan in a single quarter, a month on month increase of 9.13%, a year-on-year increase of 27.82%, and a net profit attributable to the parent company of 48 million yuan, a month on month increase of 21.97% and a year-on-year decrease of 31.90%. The slight decline in the company’s profitability is mainly due to the tight supply of raw materials such as upstream adhesive film particles in 2021 and the sharp rise in procurement costs, resulting in a temporary pressure on the net profit in 21 years. It is expected that the profitability will be restored in the future with the gradual release of the company’s adhesive film business capacity and the embodiment of scale effect.
A variety of products were launched, and the backplane business grew steadily. The company achieved 133 / 131 million square meters of backplane output / sales in 2021, with a year-on-year increase of – 2.59% / – 0.86%, mainly due to the shortage of PVDF fluorine film supply and the sharp rise of raw material prices by nearly 40% since Q2 in 2021. At present, the company has begun to produce high margin PPF and FPF backplanes without PVDF film on the original KPF equipment. Among them, PPF and FPF backplane client authentication is expected to be accelerated, and the backplane business is expected to grow steadily.
The new production capacity of adhesive film is gradually released, and the market share is expected to increase. In 2021, the company delivered 95.101 million square meters of packaging adhesive film for photovoltaic sector, with a year-on-year increase of + 41.42% and a market share of more than 5%. The sales revenue exceeded 1.1 billion yuan, a year-on-year increase of + 60%. The 255 million square meter packaging adhesive film project of the company’s convertible bond raised investment project has partially reached the production capacity and is expected to reach the expected usable state in the middle of 2022. Considering the climbing cycle, we expect the company’s monthly weighted average adhesive film output this year to reach 20 million square meters / month. At present, the company’s products are successfully supplied to Trina Solar, Jingao, Atlas and other front-line component manufacturers. We expect that in the future, with the rapid release of the company’s new production capacity, the scale effect will gradually appear, and the market share is expected to continue to increase.
The non photovoltaic business grew rapidly. In 2020, the company started lithium battery business, and its product line is becoming richer and richer. In the field of lithium battery for new energy vehicle power, the company has become an important supplier of insulating materials and solutions in China, and has entered Contemporary Amperex Technology Co.Limited(300750) , Byd Company Limited(002594) , Gotion High-Tech Co.Ltd(002074) , Farasis Energy (Gan Zhou) Co.Ltd(688567) and other battery manufacturers, and has been indirectly applied to key parts of electric main models such as Tesla, Volkswagen new energy, Geely new energy and SAIC passenger cars. In the field of power management, Gree semiconductor (IGBT) mainly provides power management modules. In the 3C industry, the company has Ofilm Group Co.Ltd(002456) , Tanyuan Technology Co.Ltd(603133) , goer acoustics, Visionox Technology Inc(002387) and other important customers, and has entered the Xiaomi supply chain. In 2021, the company’s non photovoltaic business accounted for 15%, and at present, part of the production capacity of several non photovoltaic projects of the company has reached production capacity, which is expected to be fully available in the second half of 2022.
Investment suggestion: we expect the company to achieve revenue of RMB 4.715/57.97/6.647 billion from 2022 to 2024, with growth rates of 56%, 23% and 15% respectively; The net profit attributable to the parent company was 360 / 484 / 573 million yuan respectively, with a growth rate of 112%, 34% and 18%; Corresponding PE multiple 20x / 15x / 13X; The company continues to diversify its layout and is expected to benefit from the high prosperity of the new energy industry and maintain the “recommended” rating.
Risk tip: the demand for photovoltaic installation is less than expected, the sales volume of new energy vehicles is less than expected, and the price of raw materials fluctuates.
