\u3000\u3 China Vanke Co.Ltd(000002) 859 Zhejiang Jiemei Electronic And Technology Co.Ltd(002859) )
Event: the company released its 2021 annual report, with annual revenue of 1.86 billion yuan, yoy + 31%; The net profit attributable to the parent company is 390 million yuan, yoy + 34.5%; Deduct 380 million yuan of net profit not attributable to parent company, yoy + 36%; The gross profit margin was 38%, down slightly by 2.4pt year-on-year; The net interest rate was 21%, with a year-on-year increase of 0.6pt. In 2021, the company’s performance maintained a high growth rate. On the one hand, it was due to the high prosperity of the industry, on the other hand, the company continued to expand production, promote integration, reduce costs and increase efficiency, continuously optimize the structure of paper carrier products, and the back-end high value-added products grew rapidly. 2021q4, the company’s revenue is 400 million yuan, yoy-6%; The net profit attributable to the parent company is 60 million yuan, yoy-24%; Deduct non net profit of RMB 50 million, yoy-28%;
Paper tape & adhesive tape: steady expansion of production capacity and continuous optimization of product structure. The revenue of paper tape carrier in 2021 is 1.34 billion yuan, yoy + 29%, accounting for 72% and the gross profit margin is 43%; The revenue of adhesive tape is 270 million yuan, yoy + 29%, accounting for 14% and the gross profit margin is 36%. Under the background of miniaturization of electronic components, the company continued to increase the production and sales of high value-added products at the back end such as perforated paper tape and perforated paper tape, and expanded the application of 01005 perforated paper tape and perforated sealing tape products in the semiconductor field. The company’s “60000 ton / a chip electronic component packaging thin paper tape project” has accelerated the expansion of production by introducing more high-end electronic special base paper production line and technical transformation. The company’s fifth special electronic base paper production line is planned to be put into operation in August 2022. After reaching the production capacity, it will realize the packaging of chip electronic components and thin paper tape, with an annual production capacity of 120000 tons. The company’s “expansion project of special tape for electronic component packaging with an annual output of 4.2 million volumes” has been successfully promoted, the new production capacity of 2 million volumes / year will be released year by year, and the overall supporting capacity of upper and lower tapes will be further strengthened.
Plastic carrier tape: the integration continues to promote and accelerate the development of semiconductor sealing and testing customers. In 2021, the revenue of plastic belt was 110 million yuan, yoy + 50%, accounting for 6%. The company has realized the independent production of precision molds and raw materials, black plastic particles and sheets. Some customers have switched and batch used the plastic carrier belt produced by the company’s own black PC particles and self-made sheets. The integration of the company’s plastic carrier belt will continue to work. The development of customers in the field of semiconductor sealing and testing has accelerated, the shipment volume of high-end plastic carrier belt has increased steadily, the supply of precision small-size products such as 0603 and 0402 has been stable, and the market response is good; 12 new plastic tape production lines have been put into operation, with a total of 60 production lines. With the expansion of production capacity, new customers continue to increase. Customers in the field of semiconductor sealing and testing have been supplied, and the subsequent business volume can be further released.
The high-end release membrane has made a breakthrough, and the base membrane project has been smoothly promoted. The revenue of release membrane in 2021 was 110 million yuan, yoy + 27%, accounting for 6%. 1) Category expansion: the company’s MLCC release film shipments increased steadily, with a significant breakthrough in the downstream and middle-end demand field; Polarizer and other high-end release films have also been sold. In the transfer belt expansion project, two wide width and high-end production lines imported from South Korea were successfully put into operation and supplied in batches, and the ultra wide and high-end production lines imported from Japan entered production commissioning. 2) Integration: the company’s BOPET film entered trial production at the end of 2021, and the company is expected to become an important raw material supplier in the electronic and photoelectric display industry. The CPP film production line has been supplied in batches on September 2021. 3) Extended application: BOPET film is used for MLCC, release film for polarizer, etc., belonging to the field of photoelectric display; CPP film is used for aluminum-plastic film, brightening film, ITO conductive film, etc. it belongs to the field of new energy and photoelectric display. The above base film layout will help the company expand its capacity in the field of new energy and photoelectric display.
Profit forecast and investment suggestions: Zhejiang Jiemei Electronic And Technology Co.Ltd(002859) is the leading supplier of paper carrier tape in the world. Benefiting from the continuous boom in the demand for downstream passive components and the expansion of production by customers, the company enjoys booming production and sales, and the gradual implementation of new production capacity contributes to the steady growth; Release film, plastic carrier belt technology breakthrough and smooth customer development are expected to rebuild a new growth level. We estimate that the company’s revenue from 2022 to 2024 will be 2.383/31.81/4.295 billion yuan, and the net profit attributable to the parent company will be 5.13/6.51/863 billion yuan, corresponding to pe1.9 billion yuan 3x / 15.2x / 11.4x, maintain the “buy” rating.
Risk warning: downstream demand is less than expected, and upstream cost fluctuation risk
