\u3000\u3 Bohai Water Industry Co.Ltd(000605) 006 Shandong Fiberglass Group Co.Ltd(605006) )
The company released its annual report for 2021, with an annual revenue of 2.75 billion yuan, an increase of 37.7% at the same time; The net profit attributable to the parent company was 550 million yuan, an increase of 216.8% and the earnings per share was 1.09 yuan / share, an increase of 172.5%.
Key points supporting rating
Q4’s revenue and net profit attributable to the parent company increased significantly year-on-year: Q4’s revenue was 690 million yuan, a month on month increase of 13.1% and a year-on-year increase of 9.7%; The net profit attributable to the parent company was 96.1 million yuan, a month on month decrease of 19.4% and a year-on-year increase of 20.0%. In 2021, the company’s operating revenue and net profit attributable to the parent company increased by 37.7% and 216.8% respectively year-on-year.
The volume and price of glass fiber business increased simultaneously, and the production capacity was released: in 2021, the downstream application field of glass fiber benefited from the rapid development, and the overseas demand increased greatly, and the industry was highly prosperous throughout the year. The company’s glass fiber business income was 2.37 billion yuan, a year-on-year increase of 41.4%; The company’s glass fiber yarn sales volume was 393000 tons, with a year-on-year increase of 4.4%; According to the data of Zhuo Chuang information, the average price of 2400tex winding direct yarn of the company in 2021 was about 6046 yuan, a year-on-year increase of 39.4%. The third Yishui line of the company entered cold repair in July 2021 and resumed production in October. The production capacity increased from 60000 tons to 100000 tons. The company’s current production capacity is 430000 tons, ranking among the top five in China.
Continue to be optimistic about the glass fiber industry: we expect that the demand for wind power, automobile and PCB industries downstream of glass fiber will continue to be strong in 2022; According to the data of Zhuo Chuang information, about 400000 tons of production lines were ignited and put into operation in the first half of 2022. Considering the factors such as capacity climbing and energy consumption control, we believe that the new supply is controllable, the supply and demand pattern of the industry is good, and the growth attribute is strong. We continue to be optimistic about the company’s future performance.
Valuation
Considering that there are many new ignition capacity in the glass fiber industry in 21-22 years, we slightly adjust the company’s performance. It is estimated that from 2022 to 2024, the company’s revenue will be RMB 2.97 billion, RMB 3.28 billion and RMB 3.59 billion respectively; The net profit attributable to the parent company was RMB 700 million, RMB 820 million and RMB 910 million respectively; EPS was 1.41, 1.65 and 1.82 yuan, maintaining the company’s overweight rating.
Main risks of rating
The production capacity of glass fiber industry is released beyond expectations, and the fuel price remains high
