\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 20 Jiangyin Haida Rubber And Plastic Co.Ltd(300320) )
Event: on March 31, 2022, the company released its annual report for 2021, with annual revenue of 2.523 billion yuan, a year-on-year increase of 11.47%; The net profit attributable to the parent company was 148 million yuan, a year-on-year decrease of 24.16%; Deducting the net profit not attributable to the parent company of 144 million yuan, a year-on-year decrease of 22.95%; The basic earnings per share is 0.25 yuan. Among them, the revenue in 2021q4 was 661 million yuan, a year-on-year increase of 4.94%, and the net profit attributable to the parent company was 10 million yuan, a year-on-year decrease of 71.07%. The decline in profitability is mainly due to the continuous rise in the prices of raw materials such as upstream synthetic rubber, carbon black, processing oil and aluminum ingots. We expect that in the future, as the price of raw materials falls back to the normal range, the superimposed photovoltaic business will achieve breakthrough and release increment, and the profitability of the company is expected to be improved.
Cut into the photovoltaic market, the buckle short frame is expected to achieve a breakthrough. In 2008, the company began to lay out the photovoltaic sector, and successfully developed photovoltaic block products in 15 years, which are matched with overseas firstsolar and other manufacturers. With the promotion of large-size and high-power modules, the company successfully developed rubber snap short frame in June 21, which is used in large-scale ground power stations and distributed fields, supporting common components and flexible components. According to the announcement information of the company, The bearing capacity of the snap short frame reaches 5400pa, and the materials only include aluminum profile and rubber. Under the same conditions, the cost can be reduced by nearly 50% compared with the aluminum frame, and the single w cost is expected to be reduced by 4-5 points. It also has its own advantages in transportation, operation and maintenance, and is expected to realize partial replacement of the aluminum frame in the future.
Rapidly promote production capacity and accelerate customer verification. Previously, the company signed a strategic cooperation agreement on the supporting short frame framework of 2gw flexible module photovoltaic power station project with China building materials, and carried out product verification with leaders in the photovoltaic industry. In the follow-up, it is expected to quickly open the market through the demonstration and promotion of central business owners and key component customers. We expect that the product is expected to achieve a breakthrough this year and gradually increase the volume in the next 2-3 years.
Coordinated development of multiple businesses and continuous expansion of downstream businesses. Since its listing, the company has continued to deepen its business in the sealing field. In recent years, the company has continued technology research and development, gradually penetrated into various downstream segments, and gradually expanded its layout from the initial shipping to rail transit, automobile, construction and other fields, so as to continuously consolidate its leading position in the industry; Rail transit: affected by covid-19 epidemic and project commencement, the business income in this field decreased slightly compared with the same period, but the company seized the opportunity of internal circulation and continued to maintain a high level of new bid winning and on-hand orders. Shipping: the company seized the opportunity of container increment, increased production capacity, seized the market and supported the production and operation of container sealing parts. In the whole year of 21, the sales increased by about 220% year-on-year, reaching a record high. Automotive field: the company signed a cooperation framework agreement with Fuyao Group and won projects of BMW (f78 static sealing strip) and other high-end brands. At the same time, LMC’s electric pickup vehicle seal and PSA group’s battery box seal projects were delivered in batch, showing a good growth trend.
Investment suggestion: we expect the company to achieve revenue of RMB 3.074/42.62/6.016 billion from 2022 to 2024, with growth rates of 22%, 39% and 41% respectively; The net profit attributable to the parent company was 196 / 354 / 551 million yuan respectively, with a growth rate of 32%, 81% and 56%; Corresponding PE multiple: 41x / 23x / 14x; The company has multi business collaboration, and photovoltaic products are expected to make a breakthrough this year and maintain the “recommended” rating.
Risk tip: the demand for photovoltaic installation is less than expected, and the price of raw materials fluctuates.
