\u3000\u3 China Vanke Co.Ltd(000002) 171 Anhui Truchum Advanced Materials And Technology Co.Ltd(002171) )
The dual wheel drive of “copper based materials + new military materials” helped the company’s net profit attributable to the parent company increase by 106.78%. According to the company’s announcement, the company’s performance increased significantly in 2021, with an annual operating revenue of 37.35 billion yuan, a year-on-year increase of 62.57%, a net profit attributable to the parent company of 567 million yuan, a year-on-year increase of 106.78%, and a deduction of non attributable net profit of 384 million yuan, a year-on-year increase of 70.14%. The main reason for the substantial growth of the company’s performance is the continuous growth of the production and sales scale of copper-based materials and military carbon materials. In 2021, the company sold 650700 tons of copper-based materials, with a year-on-year increase of 20.94%, and the revenue of military new materials was 921 million yuan, with a year-on-year increase of 61.67%.
The company is a leading enterprise of copper sector and strip in China, and the release of new production capacity is approaching. The company’s copper based materials business involves high-precision copper sector and strip, copper conductor material and copper alloy wire rod. Among them, the output of high-precision copper alloy sector and strip in 2021 was 300000 tons, with a market share of 13.16%, ranking first in China; At the same time, the company is also in the leading position in the subdivided industry in the field of copper alloy wire and high-end copper conductor. The 50000 ton high-precision copper alloy strip foil project, phase II and III (20000 tons) of high-precision copper alloy calendering belt reconstruction and expansion project and 300000 ton copper conductor project funded by the company are expected to be completed and put into operation in 2023, further consolidating the leading position of the company.
Carbon fiber preform is the absolute leader and actively expand the civil product market. Tianniao hi tech is the only enterprise engaged in the production of military brake preforms in China, with leading technology and exclusive patents. Its products include brake preform materials, hot field preforms and special-shaped preform products. Tianniao hi tech has sufficient orders, with a revenue of 599 million yuan in 2021, a year-on-year increase of 49.84%; The company raised funds to build 480 t / a aircraft carbon brake prefabricated parts and 650 T / a carbon fiber thermal field prefabricated parts projects, and the future production capacity is expected to reach 1700 tons. At the same time, the company actively explored the civil products market, set up Wuhu Tianniao and invested in the construction of photovoltaic thermal field carbon / carbon composite material project, so as to create new performance growth points for the company.
The performance of high-end thermal equipment is growing rapidly, and the spin off and listing of subsidiaries is imminent. Dingli technology is the leader of China’s intelligent thermal equipment and was selected into the third batch of specialized and new “little giant” enterprises of the Ministry of industry and information technology in 2021. Dingli technology has completed the relocation, and its production is gradually on track. In 2021, it achieved an operating revenue of 314 million yuan, a year-on-year increase of 83.40%, and a total profit of 98 million yuan, a year-on-year increase of 222.99%. In 2022, the company will focus on promoting the split listing of Dingli technology, and the company is expected to usher in value revaluation.
Investment suggestion: the company is the leading enterprise of copper sector and strip materials in China and the only manufacturer of military brake preforms in China. With the release of new production capacity and the expansion of the company in the civil product market, the company’s revenue is expected to reach 52.041, 72.787 and 83.411 billion yuan in 20222024, with net profit attributable to the parent company of 711, 915 and 1.020 billion yuan and EPS of 53, 69 and 76 yuan respectively. Maintain the “buy” rating.
Risk tip: copper processing fees fell, production capacity was released less than expected, and downstream market development was blocked
