\u3000\u3 Shengda Resources Co.Ltd(000603) 212 Cybrid Technologies Inc(603212) )
Key financial points: the company disclosed the annual report of 2021, realizing a revenue of 3.017 billion yuan, a year-on-year increase of 38.25%; The net profit attributable to shareholders of listed companies was 170 million yuan, a year-on-year decrease of 12.36%. Among them, the photovoltaic materials business was 2.563 billion yuan, accounting for 84.95% of the operating revenue.
The rise of raw materials dragged down the performance, and the overall performance was in line with expectations. Benefiting from the strong downstream demand, the company achieved positive growth in all business revenues in 2021, including 1.425 billion in backplane business, a year-on-year increase of 9.8%, 1.138 billion in adhesive film business, a year-on-year increase of 56.9%, 250 million yuan in set material business, a year-on-year increase of 297%, and 54 million yuan in 3C material business, a year-on-year increase of 38.7%. Against the background of rapid growth in revenue, the company's net profit declined, mainly due to the tight supply of raw materials such as upstream EVA particles and PVDF fluorine film, and the gross profit margin of various businesses declined. Among them, the gross profit margin of backplane business was 12.41%, down 4.71bp from the previous year, and the gross profit margin of adhesive film business was 12.95%, down 4.59bp from the previous year. We believe that in the future, as the bottleneck of upstream raw material supply will be alleviated, the pressure of sharp rise in raw material cost in 21 years is unlikely to continue to 22 years. With the superposition of strong downstream demand, the company's profitability is expected to usher in an inflection point.
The product line of backplane and adhesive film business has been gradually improved, and the revenue has entered a period of rapid growth. In 2021, under the influence of the increasing penetration rate of double glass components year by year, the growth rate of the company's backplane business began to slow down. However, we expect that new products such as transparent backplane may bring additional growth increment in 22 years. The revenue of backplane business will still grow steadily, but the proportion of revenue will decline year by year. In 2021, the packaging adhesive film products have become the second largest product series of the company's revenue and profit contribution, with a total sales of 95.1 million square meters, an increase of 41.42% over the past 20 years, and the product line has expanded from Poe adhesive film of a single category in 2020 to EPE adhesive film, transparent EVA adhesive film, transparent high cut-off EVA adhesive film, white EVA adhesive film, second-generation white EVA adhesive film, special adhesive film for hjt battery, etc., becoming an emerging adhesive film supplier with a full product series, At present, the adhesive film products have successfully entered the front-line component manufacturers such as Trina Solar, Jingao, Jingke, Atlas and Chint, and have been widely recognized by mainstream customers. We believe that in the future, as the company's new production capacity gradually climbs, through the implementation of lean management measures such as yield improvement, cost control and supply chain development, it is expected that the profit contribution of the company's adhesive film business will exceed that of the traditional backplane business in 2022.
Diversified development platforms help non photovoltaic business become a new growth point of the company. With the launch of production capacity, the company's non photovoltaic business has entered a period of rapid development. In 2021, the main products include side sector insulating film (black film), integrated packaging adhesive film of cell acquisition system (CCS hot pressing film), cell shell protective film (cell blue film), etc., which have been successfully introduced into leading enterprises in Contemporary Amperex Technology Co.Limited(300750) and Byd Company Limited(002594) and other industries. The profitability of non photovoltaic business is significantly stronger than that of photovoltaic business. The expansion of non photovoltaic applications is an important strategic layout of the company based on long-term development. At present, the company has a number of non photovoltaic projects that are expected to be available by the end of 2021. It is optimistic that the company will continue to create incremental markets by driving the industrialization of lithium battery, communication, 3C and other fields through technology research and development on the basis of consolidating the traditional photovoltaic business.
Profit forecast: as a platform enterprise of polymer membrane materials, the company will directly benefit from the rapid development of downstream photovoltaic and new energy vehicle industry by virtue of diversified R & D and innovation advantages, and is optimistic about the medium and long-term growth potential of the company. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 334 / 429 / 502 million, EPS will be RMB 0.83/1.06/1.24 respectively, corresponding to the closing price of RMB 19.03 on March 30, 2022, and PE will be 23 / 18 / 15 respectively. Maintain the company's "recommended" rating.
Risk tip: the development of photovoltaic industry may not be as expected; The company's business development and cost control may be lower than expected.
