\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 81 Puyang Huicheng Electronic Material Co.Ltd(300481) )
2021 performance increased by 40.66%, 2022q1 performance increased by 50% – 80% in advance, maintaining the “buy” rating
On March 30, the company released its 2021 annual report. In 2021, the company achieved a revenue of 1.393 billion yuan, a year-on-year increase of 52.61%; The net profit attributable to the parent company was 253 million yuan, a year-on-year increase of 40.66%. The company expects to distribute a cash dividend of 4 yuan (including tax) for every 10 shares to all shareholders. At the same time, the company issued a pre increase announcement of 2022q1 performance. In 2022q1, the company is expected to realize a net profit attributable to the parent company of 705306 – 846367 million yuan, with a year-on-year increase of 50% – 80%, exceeding our expectations. We raised the company’s profit forecast. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 330 (original value 3.15), 415 (original value 390) and 616 million yuan respectively, corresponding to EPS of 111 (original value 1.06), 140 (original value 1.32) and 2.08 yuan / share respectively, and the current share price corresponding to PE from 2022 to 2024 will be 20.4, 16.2 and 10.9 times respectively. With the positioning of “leading technology, cost advantage and continuous optimization and extension of product line”, the company has strong certainty of long-term sustainable growth and maintains the “buy” rating.
Maleic anhydride derivative products are in short supply, and the downstream prosperity continues to rise
The company’s maleic anhydride derivative products achieved a revenue of 1.012 billion yuan in 2021, with a year-on-year increase of 64.53%. Maleic anhydride derivatives are widely used in electrical equipment insulation materials, coatings, composite materials, electronic component packaging materials and other fields. The speed of UHV construction, the continuous promotion of dry-type transformers, the continuous improvement of wind power pultrusion girder permeability, and the high prosperity in the downstream continue to drive the product demand of maleic anhydride derivatives of the company. In 2021, the production and sales of maleic anhydride derivatives of the company were 63500 tons and 63600 tons respectively, with a capacity utilization rate of 124.55%. The annual average selling price was 1590608 yuan / ton, with a year-on-year increase of 26.54%. The supply of products was in short supply and the orders on hand were full. In addition, the company’s functional material intermediate project achieved an operating revenue of 201 million yuan in 2021, a year-on-year increase of 124.28%. During the reporting period, the company’s “functional material project with an annual output of 20000 tons” has been put into operation, and the company’s production capacity has been further improved.
The production capacity of the company’s main products will be doubled and expanded, with support for long-term growth
According to the company’s 2021 annual report, the design capacity of the company’s main product CIS anhydride derivatives is 51000 tons, and the capacity under construction is 70000 tons, including the expansion project of methyl tetrahydrophthalic anhydride with an annual output of 20000 tons, Gulei base and other projects. In addition, the company’s functional materials and other projects are under construction. The continuous launch of the company’s new production capacity is expected to continuously optimize the product structure and enrich the product line, providing strong support for the company’s long-term growth.
Risk tip: the production capacity construction progress is less than expected, the downstream application demand is less than expected, and the price of raw materials fluctuates
