\u3000\u3 Guocheng Mining Co.Ltd(000688) 550 Xi'An Manareco New Materials Co.Ltd(688550) )
Event: on April 17, 2022, the company released its annual report for 2021. In 2021, the company achieved a revenue of 1.5 billion yuan, a year-on-year increase of + 45%, and a net profit attributable to the parent company of 240 million yuan, a year-on-year increase of + 37%. In the single quarter of 2021q4, the company achieved a revenue of 390 million yuan, a year-on-year increase of + 22% and a month on month increase of - 12%, and a net profit attributable to the parent company of 71 million yuan, a year-on-year increase of + 37% and a month on month increase of + 6%.
The demand for OLED increased, and the sales of deuterated blue light materials increased greatly: thanks to the rapid penetration of OLED panels in small and medium-sized applications and the counter trend growth of OLED panels for TV, the demand for upstream OLED materials continued to increase. According to omdia data, the demand for OLED TV panels increased by 63% year-on-year in 2021, and the shipping area of OLED TV panels exceeded that of smart phone panels for the first time. In this context, the company actively explored the market. In 2021, the sales revenue of the company's OLED sector increased by 55% year-on-year, of which the sales volume of key products deuterated blue light materials increased by 210% year-on-year. With the increasing penetration of OLED technology and the expansion of application fields and scenarios, the company's market share in the field of OLED materials is expected to further improve and consolidate the company's leading position.
LCD boom recovered and revenue growth exceeded expectations: Home Office caused by covid-19 epidemic in 2021 promoted consumers' strong demand for high-end TVs and laptops. The demand for downstream panels was tight and panel prices were rising. At the same time, with the shortage of key raw materials and core parts upstream of panels such as glass substrates and drive chips, panel manufacturers actively expanded production capacity and LCD boom recovered, The company's LCD sales revenue increased by 59% year-on-year. In the future, the growth rate of LCD industry tends to be stable, and the company's LCD sector will contribute stable performance to the company.
Cdmo sector has a large volume and broad long-term prospects: the pharmaceutical sector of the company is based on the production of pharmaceutical intermediates and actively develops to the whole cdmo industrial chain of "intermediates + APIs". In 2021, the sales revenue of the pharmaceutical sector increased by 14% year-on-year, of which the sales volume of the key product pa0045 increased by 38% year-on-year. However, the price of this product has been reduced since the end of 2020, so the increase of revenue is less than that of sales volume. In 2021, the company added 14 commercial pharmaceutical pipelines, and the raw material pharmaceutical factory area is expected to be put into operation in the third quarter of 2022. In the long run, the development prospect of the company's pharmaceutical sector is good, and it is expected to continue to be the main growth point of the company's performance in the next few years.
Actively layout the new energy field and add new impetus to growth: in 2021, the company invested in the construction of Pucheng Haitai automatic production project of new energy materials to layout the production capacity of film-forming additives vinyl carbonate (VC) and fluorovinyl carbonate (FEC) of lithium battery electrolyte. It is expected to be put into operation in the second half of 2022. After being put into operation, it is expected to contribute 50% of the revenue of electronic chemicals and become a new driving force for the growth of the company.
Profit forecast, valuation and rating: the company's performance is in line with expectations. We maintain the company's profit forecast for 2022 and 2023 and add a new profit forecast for 2024. It is expected that the company's net profit attributable to the parent company in 22-24 years will be 312 / 4.10 / 502 million yuan respectively, and the converted EPS will be 4.45/5.84/7.16 yuan / share respectively. We are optimistic about the company's leading position in the field of OLED materials and the growth space in the pharmaceutical field, and maintain the "buy" rating.
Risk tip: the downstream demand is less than expected, the price of pharmaceutical intermediates fluctuates, and the project construction progress is less than expected.
