\u3000\u3 China Vanke Co.Ltd(000002) 859 Zhejiang Jiemei Electronic And Technology Co.Ltd(002859) )
Event: Zhejiang Jiemei Electronic And Technology Co.Ltd(002859) released the annual report for 2021 (1) in 2021, the company realized an operating revenue of 1.861 billion yuan, yoy + 30.58%; The net profit attributable to the parent company was 389 million yuan, yoy + 34.47%. (2) In 21q4, the company realized an operating revenue of RMB 404million in a single quarter, yoy-5.66%; The net profit attributable to the parent company was 59.2 million yuan, yoy-23.81%.
Comments: adhering to the development concept of horizontal and vertical “industrial chain integration”, the company expands the field of release film and creates a platform company based on Electronic Thin carrier tape (paper and plastic carrier tape). In 2021, the number of orders is sufficient and the performance remains stable. The company is optimistic for a long time. Under the background of strong demand for MLCC and semiconductors, the company will continue to promote production expansion projects, develop semiconductor downstream + release film business, and create a new driving force for growth.
1. In 2021, there were sufficient orders, both production and sales were booming, and the performance remained stable.
(1) the annual revenue and net profit of the company maintained stable growth: in 2021, the company realized an operating revenue of 1.861 billion yuan, a year-on-year increase of 30.58%; The net profit attributable to the parent company was 389 million yuan, a year-on-year increase of 34.47%; Net profit deducted from non parent company was 380 million yuan, with a year-on-year increase of 36.04%. (2) The performance of 21q4 decreased month on month: the company achieved an operating revenue of 404 million yuan in a single quarter of 21q4, a year-on-year decrease of 5.66% and a month on month decrease of 16.36%; The net profit attributable to the parent company was 59.2 million yuan, a year-on-year decrease of 23.81% and a month on month decrease of 44.78%, which was affected by the fluctuation of downstream industries, the rise of raw material costs and the continuous appreciation of RMB. (3) In the long run, the logic that the increase in demand for consumer electronics, new energy vehicles and 5g drives the sustainable development of the company’s paper carrier sector and overall performance remains unchanged.
\u3000\u30002. Paper tape carrier: capacity expansion and upgrading, strong demand for MLCC, providing guarantee for performance.
Paper tape carrying business is the company’s main source of revenue. (1) Capacity expansion and upgrading: the company introduced more high-end electronic special base paper production line, and the capacity increased significantly; At the beginning of 2021, the construction of the fifth electronic special base paper production line was started, and it is planned to be put into operation in August 2022. After reaching the production capacity, the company’s chip electronic component packaging thin paper tape carrying capacity will rise to 120000 tons / year. (2) The downstream demand is strong, and the paper carrier is expected to continue to grow: as an important downstream of the paper carrier, MLCC benefits from the rapid development of electric vehicles and 5g, driving the development of the company’s paper carrier sector and overall performance.
\u3000\u30003. Plastic carrier belt: industrial chain integrated layout, capacity release + explore new markets and contribute new increment.
(1) industrial chain integration and independent production of precision molds and raw materials: the company successfully produced black PC particles, the key raw material of plastic tape carrier; Establish precision machining center to reduce cost and increase efficiency. (2) Release of expanded production capacity: the company’s 12 new plastic belt production lines have been put into operation. At present, the company has put into operation 60 plastic belt production lines. (3) Accelerate the development of customers in the field of semiconductor packaging and testing and contribute new increment: in 2021, the shipment of plastic tape products increased steadily and the business potential was good.
\u3000\u30004. Release film: industrial chain integration + active production expansion to create a new driving force for growth.
Through the convertible bond project and capacity expansion, the company further broke through and upgraded the release membrane sector. (1) Accelerated integration process and trial production of raw materials: in December 2021, the company’s BOPET film project successfully entered the trial production stage, and the industrial chain integration of the company’s photoelectric film is about to be realized. (2) Comply with the trend of localization and actively expand production: two electronic component transfer belt production lines have been successfully put into operation, and another ultra wide high-end production line has entered the stage of production and commissioning. Upon completion, the company will have the production capacity of various new products that have not been localized, including high-end MLCC release film, release film for optical materials and so on.
\u3000\u30005. Investment suggestion: the company is optimistic for a long time. Under the background of strong downstream demand, the three businesses will develop in coordination, continue to promote the expansion of production, and develop the semiconductor downstream + release film business to create a new driving force for growth; Considering the impact of downstream fluctuations, rising raw material costs and other factors on the company’s performance, we adjusted the company’s profit forecast. It is estimated that the net profit of 22-23 years is 540 / 740 million yuan (the original value is 600 / 740 million yuan), maintaining the “buy” rating.
Risk warning: the sales volume is lower than expected; Fierce competition in the industry; Exchange rate fluctuation risk, etc.
