\u3000\u3 Shengda Resources Co.Ltd(000603) 212 Cybrid Technologies Inc(603212) )
Recently, the company released its annual report for 2021. The annual operating revenue was 3.017 billion yuan, a year-on-year increase of 38%, and the net profit attributable to the parent company was 170 million yuan, a year-on-year decrease of 12%. In the fourth quarter, the operating revenue was 925 million yuan, a year-on-year increase of 28%, and the net profit attributable to the parent company was 48 million yuan, a year-on-year decrease of 32%.
The price rise of raw materials and the introduction of new products led to a slightly lower than expected performance of the company in 2021. In 2021, the price of back sector raw material PVDF and adhesive film raw material EVA particles increased significantly, and the company is facing great cost pressure. At the same time, the company imported a large number of new products such as PPF, FPF back sector (excluding PVDF), EPE and EVA adhesive film in 2021, resulting in high related costs and expenses. To sum up, the company’s profitability declined to some extent in 2021. The annual gross profit margin of backplane and adhesive film was 12.4% / 13.0% respectively, with a year-on-year decline of 4.7% / 4.6%, and the corresponding single average net profit was 0.45/0.55 yuan respectively.
Product adjustment is coming to an end, and the profitability of backplane and adhesive film is expected to be repaired. At present, the company’s backplane production capacity is about 180 million square meters. Under the condition of high raw material prices, the company actively developed PPF, FPF and other fluorine-free backplane products and successfully introduced them to customers in 2021, and the product structure continued to be optimized. In addition, the company’s EPE, white EVA and other adhesive film products have all been certified and imported with downstream front-line component manufacturers, and gradually realize mass supply. The company’s new adhesive film production capacity will continue to climb in 2022, and it is expected that the adhesive film production capacity will reach more than 300 million square meters in the middle of this year. According to the main operating data of the first quarter recently disclosed by the company, the revenue of backplane / adhesive film of 2022q1 company reached 525 / 443 million yuan respectively, with a year-on-year increase of 82% / 129%. The growth momentum of shipment is strong, and the profitability is expected to be gradually repaired.
The new energy vehicle business is growing at a high speed, and new products are in high volume. In 2021, the company’s new energy vehicle film materials achieved an operating revenue of 250 million yuan, with a year-on-year increase of 297% and a gross profit margin of 33%. Among them, three materials ranked first in China, and successfully introduced Contemporary Amperex Technology Co.Limited(300750) , Byd Company Limited(002594) and other industry leaders. At present, the company’s product line in the field of new energy vehicles continues to expand, and the total value of products on sale and under research is about 2000 yuan / vehicle. With the large-scale downstream demand and the acceleration of new product introduction, it is expected that the new energy vehicle business will continue to grow at a high speed in the future. Investment suggestion: the company is a rare new material platform enterprise in China, and its photovoltaic film and non photovoltaic (new energy vehicle, 3C, etc.) businesses keep pace. It is expected that the company will realize an operating revenue of RMB 4.908/63.347228 billion and a net profit attributable to the parent company of RMB 322/4.49/587 million respectively from 2022 to 2024, maintaining the “Buy-A” investment rating.
Risk tip: downstream demand is declining, industry competition is intensifying, and the supply of raw materials is greatly released
