\u3000\u3 China Vanke Co.Ltd(000002) 132 Henan Hengxing Science & Technology Co.Ltd(002132) )
Event: according to the annual report, the company achieved a revenue of 3.396 billion yuan in 2021, an increase of 19.89% at the same time; The net profit attributable to the parent company was 140 million yuan, an increase of 14.80% at the same time. In 2021, the gross profit margin of the company was 13.59%, and the net profit margin was 4.15%. Among them, the revenue of diamond line business was 292 million yuan, an increase of 209.12% at the same time; The revenue of metal products was 3.064 billion yuan, an increase of 14.59%.
The shipment volume and gross profit margin of diamond line business have increased rapidly, and the annual profit of photovoltaic is guaranteed. The 2021 annual report disclosed that the company's ultra-fine diamond line business achieved a sales volume of 8.0583 million kilometers, with a year-on-year increase of 230.35%. Meanwhile, the gross profit margin of diamond line business increased from 35.14% in 2021h1 to 42.89%. In terms of gross profit margin, the company's diamond line business has the cost advantage of opening up the whole chain of "wire rod yellow wire bus diamond line". At the same time, it has independently developed the most advanced "single machine 16 line" equipment in the industry, and continues to promote the reuse of waste sand and I-wheel. The gross profit margin is expected to continue to rise in the future. In terms of production capacity, the nominal production capacity of the company's diamond line is expected to expand to 46 million kilometers within the year, the shipment volume is expected to reach 30 million kilometers within the year, and major customers in the industry are locked, and the subsequent profits can be expected. In 2022, the silicon production capacity will be gradually released, and the global photovoltaic installed capacity is expected to achieve 250gw, with a same increase of 47%. The demand for diamond wire can reach 120 million kilometers, and the company's market share is expected to increase rapidly.
The trial production of silicone business is successful, and the sales volume in 2022 can be expected. The trial operation of the company's "120000 tons / year high-performance silicone polymer project" is smooth, the whole process of the project device has been opened up, and sales have been formed recently. The advanced hydrolysis reactor of Qingdao University of science and technology and "200000 ton fluidized bed reactor and supporting engineering technology" are introduced into the company's silicone production line. The production efficiency is leading in the industry, and the origin has the advantages of low raw material cost and low transportation cost. It is expected to release 70% - 80% of the production capacity in 2022.
Investment suggestion: the company's traditional metal business is stable, and the diamond line business is expanding rapidly; The release of production capacity of silicone project will help the company make multi line efforts. We expect the company to achieve revenue of RMB 7.361/88.99/9.197 billion and net profit attributable to the parent company of RMB 767/10.43/1.108 billion from 2022 to 2024, corresponding to PE 9.09 billion 65 / 7.09 / 6.68 times, maintaining the "buy" rating.
Risk warning: the launch of new production capacity is less than expected; The prosperity of photovoltaic industry is lower than expected; Orders from downstream customers are less than expected; The price of raw materials fluctuated sharply.
