\u3000\u30 Fawer Automotive Parts Limited Company(000030) 22 Levima Advanced Materials Corporation(003022) )
Performance review
On March 29, the company released its 2021 annual report, which realized a revenue of 7.581 billion yuan, an increase of 27.81% at the same time; The net profit attributable to the parent company was 1.091 billion yuan, an increase of 70.24% at the same time. Among them, Q4 achieved a revenue of 1.915 billion yuan, a decrease of 2.79%; The net profit attributable to the parent company was 269 million yuan, an increase of 23.32%, in line with expectations.
Business analysis
The high demand for photovoltaic drives the volume and price of EVA resin to rise. In 2021, the company’s EVA resin realized a revenue of 2.597 billion yuan, a simultaneous increase of 93.61%, a gross profit margin of 50.52% and a simultaneous increase of 12.84 PCT, which was mainly due to the rapid increase of downstream photovoltaic demand, the long production expansion cycle of EVA device and the high climbing uncertainty of high-end products, resulting in periodic tension between supply and demand, and the volume and price of EVA resin increased simultaneously. The annual sales volume of EVA resin was 137600 tons, an increase of 7.84%, of which the sales volume of photovoltaic materials increased by about 42%; The annual average sales price was about 19000 yuan / ton, an increase of about 80% at the same time. In 2021, the prices of the company’s main raw materials methanol, raw coal and vinyl acetate increased greatly. The company ensured a high profit level by virtue of its technical cost advantage and integrated layout.
Continuous optimization of product structure. In 2021, the capacity utilization rate of each unit of the company remained high, and PP / EO / EOD sold 2216, 6.19 and 162800 tons respectively. The company actively optimized the structure of PP products, the sales volume of high melting random copolymerization PP special materials increased by about 12% at the same time, and successfully developed high transparent PP special materials; The sales volume of EOD products increased by 16.79% and the export of Jiangsu Chaoli mother liquor, a subsidiary, made a breakthrough, with the export volume increasing by about 313%.
The layout of new material platform shows high growth. 1) Photovoltaic materials: the technical transformation of EVA device has been completed in 22q1, which can increase the annual production capacity to more than 150000 tons and increase the proportion of high-end products; 90000 T / a vinyl acetate plant is expected to be completed in 1h23, extending the industrial layout upward; 2) New energy battery materials: the 100000 t / a lithium battery material carbonate combined plant project is expected to be completed by the end of 2022, with electrolyte and solvent materials; The 20000 t / a UHMWPE plant is expected to be completed in 1h23, with raw materials for wet diaphragm. 3) Biodegradable materials: the phase I project of PLA whole industry chain is expected to be completed and put into operation by the end of 2023, and the 50000 T / a PPC industrial production line has been started.
Profit adjustment and investment suggestions
We fine tune the company’s net profit attributable to the parent company from 22 to 23 years to RMB 1.350/1.670 billion. It is estimated that the net profit attributable to the parent company in 2024 will be RMB 2.012 billion, corresponding to EPS of RMB 1.01, 1.25 and 1.51. The current stock price corresponds to 26 times PE in 2022, maintaining the “buy” rating.
Risk
Raw material price fluctuation risk, EVA price lower than expected risk, plastic product policy change risk, production expansion project construction progress risk, shareholder (employee stock ownership platform) reduction risk.
