\u3000\u3 Guocheng Mining Co.Ltd(000688) 519 Nanya New Material Technology Co.Ltd(688519) )
The company released the 2021 annual report and 2022q1 quarterly report, which highlighted the efficiency advantage of the new plant and maintained the "buy" rating
The company released its annual report for 2021, realizing an operating revenue of 4.21 billion yuan, yoy + 98.4%, a net profit attributable to the parent of 400 million yuan, yoy + 194.2%, deducting a net profit not attributable to the parent of 360 million yuan. At the same time, the company announced the quarterly report of 2022q1, realizing an operating revenue of 950 million yuan, yoy + 14.3%, and a net profit attributable to the parent company of 71 million yuan, yoy-8.0%. Considering the falling price of copper clad laminate, we lowered the previous profit forecast and added the profit forecast for 2024. It is estimated that the net profit attributable to the parent company in 20222024 will be 4.4/5.6 (the previous value is 4.9 / 6.3) / 720 million yuan, EPS will be 1.87/2.39 (the previous value is 2.11 / 2.68) / 3.05 yuan, and the current share price corresponds to 15.2/11.9/9.3 times of PE in 20222024. The company's production expansion and product upgrading support steady growth, and high-speed copper clad laminate has made a breakthrough, The investment and construction of the new plant is conducive to the improvement of operation efficiency, the reduction of production cost and the maintenance of the "buy" rating.
In 2022q1, the price of copper clad laminate continued to fall. Looking forward to the whole year of 2022, we will mainly adjust the product structure
In 2021, the company's copper clad laminate business expanded significantly. The rise of raw materials and the prosperity of the industry promoted the price increase of copper clad laminate products and increased profits. Jiangxi N4 factory was put into operation, which promoted the company to sell 22.757 million pieces of copper clad laminates in 2021, yoy + 37.2%, the average unit price of copper clad laminates reached 144.9 yuan / piece, yoy + 44.1%, the gross profit per piece reached 33 yuan / piece, and the average unit price of adhesive sheets reached 15.8 yuan / meter, yoy + 22.5%, and the gross profit per meter reached 12 yuan. Affected by the price reduction of copper clad laminate, the company's gross profit margin in 2022q1 was 14.6%, down 1.7pct from 16.3% in 2021q4. Looking forward to the whole year of 2022, the company focuses on adjusting the product structure. The high-frequency and high-speed copper clad laminate is boosted by the orders of base stations and servers, and the proportion of the whole year is expected to rise; The absolute value of vehicle mounted products increased rapidly.
Efficiency advantage and technical capability are the focus of the next stage. The company continues to optimize production costs and product portfolio
The high price of products dominated by FR-4 has passed. In the medium and long term, we should still focus on the efficiency advantages and high-level product capabilities among manufacturers. The company's Jiangxi N6 plant continues to expand, which is expected to push down the cost. In addition, the company actively reserves high-end copper clad laminate products. In 2021, the annual R & D expense rate reached 5.2%, yoy + 0.37pct. The domestic substitution of copper clad laminate has entered a new stage. The company has iteratively upgraded its own technology and gradually formed a series of core formula technologies such as lead-free, halogen-free, high frequency and high speed, vehicle mounted, high thermal conductivity and IC packaging, which is expected to benefit from the development of the industry.
Risk tip: the weakening of downstream demand leads to the lower than expected expansion of the company, the decline of copper clad laminate price leads to the loss of profitability, the price rise of upstream raw materials erodes the cost, and the competition in the high-speed copper clad laminate industry intensifies
