On April 17, Xi’An Manareco New Materials Co.Ltd(688550) ( Xi’An Manareco New Materials Co.Ltd(688550) ) disclosed the annual report of 2021. According to the announcement, the company’s operating revenue in 2021 was 1.526 billion yuan, a year-on-year increase of 45.35%; The net profit attributable to shareholders of listed companies was 240 million yuan, a year-on-year increase of 36.70%. Deduct non net profit of RMB 214 million, with a year-on-year increase of 32.98%. The basic earnings per share is 3.42 yuan, and the company plans to distribute a dividend of 17 yuan (including tax) for every 10 shares.
It is reported that the double growth of Xi’An Manareco New Materials Co.Ltd(688550) revenue and net profit benefited from the growth of the display material sector represented by OLED. According to the financial report, the display materials sector has made a great contribution to the overall revenue of Xi’An Manareco New Materials Co.Ltd(688550) and achieved a total sales revenue of 1.202 billion yuan in 2021, with a year-on-year increase of 58%.
Among them, the production and sales volume of OLED sector is relatively prominent, with a total sales revenue of 437 million yuan, a year-on-year increase of 54.91%, accounting for 28.66% of the company’s total revenue, a year-on-year increase of 54.91%.
At the same time, the performance growth of the company’s LCD sector also far exceeded expectations, realizing a sales revenue of 76500 yuan, a year-on-year increase of 59.40%, accounting for 50.13% of the company’s overall operating revenue; The pharmaceutical business also achieved positive growth in sales revenue. In 2021, the sales revenue was 281 million yuan, 13.71% year-on-year, accounting for 18.45% of the company’s operating revenue.
Wanlian Securities said that the performance growth of Xi’An Manareco New Materials Co.Ltd(688550) 2021 was due to the increase of OLED panel penetration on the one hand; On the other hand, the demand for related end products of the “housing economy” caused by the epidemic of liquid crystal materials has soared, and there are obvious signs of industrial recovery.
OLED materials prosperity rise
Xi’An Manareco New Materials Co.Ltd(688550) announced that there are three reasons for the growth of the company’s OLED business in 2021: first, from the perspective of the industry, the application of OLED panels in notebook computers and smart watches in 2021 has increased significantly compared with that in 2020; At the same time, technological progress has also improved the yield and service life of OLED TV panels. 2、 In terms of product structure, the company’s revenue from OLED light-emitting layer materials accounted for 73% in 2021, and the revenue was further improved; At the same time, orders for OLED products above 100kg have increased, and the situation of small batch and multi batch has improved. 3、 From the perspective of customers, the number of customers and the sales volume of a single customer of the company have increased.
In fact, among these three factors, industry factors account for a large proportion. In 2021, the high prospect of OLED panel industry has driven the strong demand for upstream materials. According to the statistics of consulting firm trendforce, in 2021, due to the rise of LCD price, OLED TV was gradually favored by the market, and the price difference between the two narrowed from 4.7 times to 1.8 times, which stimulated more brands to launch OLED TV products. In 2021, the shipment of OLED TV reached 6.7 million units, an increase of 70% year-on-year.
According to the judgment of Ruilian materials, OLED display and LCD display will continue to coexist for a long time in the future, occupying a dominant position in the small-size field and medium and large-size field respectively. At present, OLED is in the stage of growth and rapid development, and the whole industry will maintain a stable demand growth mode.
At the same time, the materials of OLED TV are constantly improving. Last December, lgdisplay, the global leader in large-scale OLED, released the next generation OLED TV panel “OLED. Ex” with upgraded image quality, which uses deuterium blue organic materials, which happens to be the key product of Xi’An Manareco New Materials Co.Ltd(688550) .
According to the financial report, in 2021, the supply of Xi’An Manareco New Materials Co.Ltd(688550) deuterated blue light materials increased steadily, and the annual sales volume increased by 210% year-on-year.
According to the analysis of Kaiyuan securities, Xi’An Manareco New Materials Co.Ltd(688550) as one of the few masters of deuterated technology in the field of OLED pre sublimation materials, will benefit from the continuous penetration of large-size OLED display and the wide application of deuterium blue organic materials.
In addition, according to the judgment of some securities companies, Xi’An Manareco New Materials Co.Ltd(688550) has mastered the production technology of green light deuterated materials that can improve the performance of green light materials, and this part of business will also contribute to its performance. It is expected that the company’s OLED business will still maintain a considerable growth rate in 2022.
pharmaceutical business is expected to develop
According to the financial report, in 2021, the pharmaceutical business of Ruilian materials achieved a sales revenue of 281 million yuan, a year-on-year increase of 13.71%, accounting for 18.45% of the company’s operating revenue, and the comprehensive gross profit margin was 61.40%, which was lower than that in 2020.
According to the judgment of Ruilian materials, there are several reasons for the growth of the company’s pharmaceutical business revenue and the decline of gross profit margin: first, affected by the covid-19 epidemic, the R & D, clinical or listing progress of some pharmaceutical pipelines of the company corresponding to terminal drugs was forced to be suspended or delayed, which had an adverse impact on the mass production plan of relevant products of the company. Secondly, the sales volume of pa0045, the key product in the pharmaceutical sector, increased by 38% year-on-year in 2021, but the product has been reduced since the end of 2020, so the revenue growth is less than the sales growth. Finally, due to the adjustment of customer production plan, the sales volume of pharmaceutical intermediates corresponding to an antibacterial terminal drug decreased in 2021.
It is understood that in 2022, Ruilian materials will have two new intermediate products on the market. Wanlian securities analysis said that the company has sufficient reserves of pharmaceutical pipelines and a wide range of indications, and has launched the construction of API projects and the listing of new products. In the long run, the company’s pharmaceutical sector has a good development prospect and is expected to continue to be the main growth point of the company’s performance in the next few years.
entering the lithium battery material industry
In addition to the layout in OLED, LCD, medicine and other sectors, Ruilian materials is also expanding its layout field and targeting one of the hottest industries at present – lithium battery materials industry.
In 2021, Ruilian materials actively arranged the new energy field, invested in the construction of Pucheng Haitai new energy material automation production project, and produced vinyl carbonate VC and fluorovinyl carbonate FEC materials.
At present, based on the inherent advantages of the highest specific capacity of lithium and strong electronic ability, lithium battery is the first choice of power battery. Vinyl carbonate (VC) and fluorinated vinyl carbonate (FEC), as film-forming additives of lithium battery electrolyte, play an important role in improving the cycle performance and reversible capacity of the battery. The rapid growth of downstream lithium battery output drives the demand for VC to increase significantly. The Zheshang Securities Co.Ltd(601878) research report predicts that the demand for VC will exceed 75000 tons in 2025 and the CAGR will reach 50.7% from 2021 to 2025.
Ruilian material analysis said that although the company’s new energy materials business is still in the project construction period, it is expected to contribute 50% of the revenue of the electronic chemicals sector after it is put into operation in 2022. In the future, if this sector develops smoothly, the company will increase investment and build a new production base of new energy materials.
