\u3000\u30 Fawer Automotive Parts Limited Company(000030) 22 Levima Advanced Materials Corporation(003022) )
Event: the company released its annual report for 2021, and achieved a revenue of 7.581 billion yuan (year-on-year + 27.81%); The net profit attributable to the parent company was 1.091 billion yuan (year-on-year + 70.24%).
Synchronous contribution of main products and continuous improvement of competitive advantage: the company continued to focus on new materials and continued to carry out high-end, differentiated and refined layout in the fields of new energy materials, biomaterials and special materials of subdivided categories. The economic and technical indicators of main devices continued to improve in the reporting period. By product: the annual output of EVA products of the company in the reporting period was 130400 tons, and the capacity utilization rate reached 107.80%, Among them, all products with high added value such as high VA content were produced throughout the year, and the production and sales of photovoltaic film materials continued to increase; The annual output of PP thin-wall injection molding special material products was 223400 tons. While continuously improving the market share, we have promoted the development of new products. According to the announcement, we have successfully developed high transparent PP special material; EO products and EOD products developed steadily, with annual output of 139300 tons and 176500 tons respectively, providing stable support for the company’s profits. In addition, the company has completed the acquisition of the equity of Lianhong chemical in 2021, thus realizing the control of 80% of the total amount of raw material methanol required for production. At present, the integrated synergy between the company and Lianhong chemical is gradually emerging. According to the announcement, MTO grade methanol has been produced and used, greatly reducing the cost of methanol. At the same time, through the mutual supply of utilities, the freight of methanol has been significantly reduced, and the competitiveness of the company has been significantly improved. At present, various projects of the company have been carried out smoothly: according to the announcement, “EVA device tubular tail technology upgrading project” has been completed in 22q1. After the project is put into operation, the output of the company’s EVA device is expected to increase to more than 150000 tons / year; “Polypropylene plant second reaction technology transformation project” has been successfully commissioned in 21q4 and produced qualified products, helping the company increase the overall PP production capacity by 80000 tons / year; The “100000 t / a lithium battery material carbonate combined plant project” is planned to be completed by the end of 2022. After being put into operation, it will fully cooperate with the company’s existing industrial chain to enhance the company’s cost advantage, so as to provide strong support for the improvement of the company’s profitability in the future.
The industrial chain continues to extend and various R & D continues to be implemented: the company continues to carry out new business R & D and expansion. During the reporting period, the company’s new technology platforms such as functional polymers and sulfonation have been continuously improved. The development of several new products has been completed, the process development of high-end water reducing agent mother liquor has been completed and put into operation smoothly, and the small-scale laboratory development and successful industrialization of high-efficiency dye dispersant and high-end cationic polymer have been completed, In addition, a new high-end lubricant base oil product development technology platform, a high-end leather fatliquor and unsaturated high carbon alcohol ester product development technology platform, a bioengineering platform and a material biodegradability evaluation platform have been built. In the future, while focusing on its main business, the company will continue to layout the field of new energy materials and biodegradable materials. In terms of new energy materials, during the reporting period, the company invested in the new “100000 t / a lithium battery material carbonate combined plant project” and the “20000 t / a ultra-high molecular weight polyethylene and 90000 T / a vinyl acetate combined plant project” invested by the wholly-owned subsidiary Lianhong chemical to realize the development of high-end polyethylene fiber materials The layout of lithium battery separator, lithium electric solvent and other industries. At the same time, in the field of biomaterials and degradable materials, the technical reserve side has signed a technical cooperation agreement on biodegradable materials PPC with Changchun Institute of Applied Chemistry, Chinese Academy of Sciences, and cooperated in the development of PPC Supercritical Polymerization industrialization technology based on the fourth generation catalyst. In addition, it became the controlling shareholder of CAS biology through capital increase and equity acquisition in June and September 2021, CAS biology plans to build a “project with an annual output of 200000 tons of lactic acid and 130000 tons of polylactic acid”. At present, the construction of phase I project has been started. In the future, with the gradual implementation of the capacity under construction and the continuous promotion of CAS biological operation, the profitability of the company is expected to be further improved.
Investment suggestion: we expect the net profit of the company from 2022 to 2024 to be 1.393 billion yuan, 1.785 billion yuan and 2.239 billion yuan respectively, maintaining the Buy-A investment rating.
Risk warning: R & D is not as expected; The landing of raised investment projects is less than expected; The macro environment is less than expected
