\u3000\u3 Shengda Resources Co.Ltd(000603) 078 Jiangyin Jianghua Microelectronics Materials Co.Ltd(603078) )
Event: the company issued the announcement of pre increase of performance in the first quarter of 2022. In the first quarter of 2022, the net profit attributable to shareholders of listed companies was 31-35 million yuan, an increase of about 232% to 275% compared with the same period of last year.
The production capacity of Jiangyin base was fully released, and the profit of the company increased rapidly. According to the pre increase announcement of performance in the first quarter of 2022 issued by the company, in the first quarter of 2021, the company realized a net profit attributable to shareholders of listed companies of 31-35 million yuan, with a year-on-year increase of 232% – 275% and a month on month increase of 8.03% – 21.97%; In the first quarter of 2022, the net profit attributable to the shareholders of the listed company after deducting non recurring profits and losses was RMB 31.1 million-35.1 million, with a year-on-year increase of 258%-304% and a month on month increase of 17.27%-32.36%. Benefiting from the gradual improvement of the capacity and operating rate of phase II of Jiangyin plant and the continuous optimization of customer structure, the production and sales volume of wet electronic chemicals and gross profit margin of the company increased simultaneously, and the profitability remained high.
Zhenjiang and Meishan bases have entered the production capacity release period, and their future performance will continue to maintain high growth. The company has raised funds twice to build Sichuan Meishan 60000 T / a ultra-high purity wet electronic chemicals project and Jiangsu Zhenjiang 228000 T / a ultra-high purity wet electronic chemicals, 7000 T / a industrial grade chemicals and recycling project (phase I). Among them, 60000 T / a capacity of Meishan plant has been put into production, 30000 T / a recycling capacity is in the trial production stage, and it is expected to be officially put into production in June, Meishan base is expected to have an annual capacity utilization rate of more than 60%. At present, Zhenjiang factory (phase I) has produced qualified G5 wet electronic chemicals on a trial basis. It is expected that the production will be officially started at the end of April and samples will be sent to downstream customers for testing. It is expected that the annual capacity utilization rate will reach more than 50%. With the formal production of Zhenjiang capacity, the company is expected to take the lead in seizing the market share of domestic 12 inch high-end semiconductor wet electronic chemicals, and the company’s performance is about to usher in a rapid rise period.
Profit forecast: we expect the company to achieve operating revenue of RMB 1.583 billion, RMB 1.982 billion and RMB 2.463 billion respectively from 2022 to 2024, and realize net profit attributable to parent company of RMB 164 million, RMB 268 million and RMB 389 million, corresponding to EPS of RMB 0.84, RMB 1.37 and RMB 1.99 respectively. Considering that the Zhenjiang and Meishan projects of the company are about to be put into operation, the performance of the company is flexible, and the high technical barriers of G5 wet electronic chemicals are superimposed, the PE valuation of the company is 43-47 times in 2022. The reasonable market value range in 2022 is 7.052-7.708 billion yuan, and the reasonable stock price range is 36.12-39.48 yuan, maintaining the “recommended” rating of the company.
Risk tip: the price of raw materials fluctuates, power and production restrictions intensify, industry competition intensifies, the project is put into operation less than expected, and the domestic substitution is less than expected.
