\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 208 Sichuan Em Technology Co.Ltd(601208) )
Events
On March 30, the company released its 2021 annual report. The company achieved an operating revenue of 3.234 billion yuan, a year-on-year increase of + 71.9%, and a net profit attributable to the parent company of 341 million yuan, a year-on-year increase of + 94.27%. In the fourth quarter, the company achieved an operating revenue of 780 million yuan, a year-on-year increase of + 50.64%, and a net profit attributable to the parent company of 70 million yuan, a year-on-year increase of + 40.7%.
Business analysis
The company’s business income increased year-on-year, and the gross profit margin was under certain pressure due to the impact of raw materials. In 2021, the company’s insulating materials business achieved an operating revenue of 1.639 billion yuan (+ 37.14%), with a gross profit margin of 24.79% (+ 0.57pct); The business of optical film materials achieved an operating revenue of 956 million yuan (+ 134.84%) and a gross profit margin of 25.65% (- 6.76 PCT); Electronic materials achieved an operating revenue of 403 million yuan (+ 165.09%), with a gross profit margin of 18.74% (- 5.68pct); Environmental friendly flame retardant materials achieved an operating revenue of 134 million yuan (+ 43.69%) and a gross profit margin of 11.61% (- 6.49 PCT).
The production capacity of optical base film and electronic resin has been expanded, and the variety structure has been continuously optimized. In terms of optical base film, Jiangsu Dongcai line 3 was put into trial operation, and the company has five optical polyester base film production lines with a total capacity of about 100000 tons. Through the wholly-owned subsidiaries Jiangsu Dongcai and Dongcai film materials, the company invested in the construction of “high-performance polyester base film project with an annual output of 20000 tons for MLCC and PCB” and “optical grade polyester base film project with an annual output of 20000 tons for new display technology”, which are mainly aimed at manufacturing MLCC release film base film High end anti-corrosion dry film base film, polarizer release film base film and other products to improve the company’s comprehensive supporting capacity in medium and high-end fields. In addition, the company plans to build the industrialization project of functional membrane materials with an annual output of 100 million square meters, which will gradually extend to the downstream. In terms of electronic resin, the company’s 5200 tons of high-frequency high-speed resin and 60000 tons of epoxy resin projects will gradually reach production in 2022. In addition, the company’s Dongrun project plans to produce 160000 tons of high-performance phenolic resin and formaldehyde per year, which are mainly used in the fields of electronic packaging, high-end composites and adhesives. With the large volume of the above projects, the company’s electronic resin business will continue to grow.
Profit and investment forecast
Affected by the price of raw materials, we expect the net profit attributable to the parent company from 2022 to 2024 to be 519 (- 9.58%), 7.38 (- 5.87%) and 898 (newly introduced) million yuan respectively; EPS is 0.58, 0.82 and 1.00 yuan respectively, and the corresponding PE is 21.62x, 15.19x and 12.48x respectively. Maintain the “buy” rating.
Risk tips
The construction of electronic resin production capacity is less than expected; The rhythm of electronic resin volume is less than expected; The demand for optical film is less than expected; The product competition pattern has deteriorated.
