\u3000\u3 Guocheng Mining Co.Ltd(000688) 550 Xi'An Manareco New Materials Co.Ltd(688550) )
The performance grew steadily, pharmaceutical intermediates and new energy materials added growth momentum and maintained the "buy" rating
On April 17, the company released its 2021 annual report, realizing a revenue of 1.526 billion yuan, a year-on-year increase of 45.35%; The net profit attributable to the parent company was 240 million yuan, a year-on-year increase of 36.70%. In 2021q4, the revenue was 392 million yuan, with a year-on-year increase of 21.72%; The net profit attributable to the parent company was 71 million yuan, a year-on-year increase of 37.45%. We maintain the profit forecast for 2022 and 2023 and add the profit forecast for 2024. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 313, 408 and 533 million yuan, corresponding to EPS of 446, 5.81 and 7.60 yuan / share, and the current share price corresponding to PE of 19.4, 14.9 and 11.4 times. We are optimistic that the company will benefit from the high boom of OLED display, continue to expand the extended application of core technology in medicine and electrolyte additives, and maintain the "buy" rating.
Exchange losses superimposed on the rise in the price of raw materials and other factors led to a decline in gross profit margin, indicating that the sector continued its high boom
In 2021, the company's overall gross profit margin was 35.33%, with a year-on-year decrease of -4.97 PCTs. The decrease in gross profit margin was mainly due to the increase in the proportion of export revenue to 65% in 2021. The continuous appreciation of RMB against the US dollar resulted in an exchange loss of 85.35 million yuan, resulting in a gross profit margin of -3.43 PCTs. At the same time, the rise in the price of raw materials led to an increase of about 22% in procurement costs, and the increase in the revenue of pharmaceutical business with high gross profit (13.71%) was less than that of display materials (57. Breakdown: (1) the gross profit margin of OLED sector increased to 30.02%, and the sales volume of deuterated blue light materials increased by 210% year-on-year; (2) The increase in panel demand, the trend of large size and the rise in panel prices led to a year-on-year increase in the revenue of the LCD sector by 59.40%; (3) The gross profit margin of pharmaceutical business was 61.40%, with a year-on-year increase of -6.8pcts. In addition to the exchange rate factor, the epidemic also had an adverse impact on the product mass production plan. The sales volume of pa0045 increased by 38% year-on-year, but the price has been reduced since the end of 2020, resulting in the revenue growth less than the sales growth. We believe that as the exchange rate and raw material prices stabilize, the company's profitability will return to normal and continue to benefit from the continuous penetration of large-scale OLED display and the wide application of deuterium blue organic materials.
The expansion of pharmaceutical product pipeline is smooth, electrolyte additives are expected to be in large quantities, and the growth power of the company is sufficient
As of 2021, the company has sold 4 pharmaceutical intermediate products of tens of millions of grade, including 100 pharmaceutical pipelines, including 72 projects in which the terminal drugs are innovative drugs, 27 generic drugs and 1 unknown, an increase of 39 compared with the end of 2020; Pucheng Haitai new energy materials project of the company can produce 1500 tons of VC products and 500 tons of FEC products per year. It is expected to contribute 50% of the revenue of electronic chemicals after it is put into operation in 2022.
Risk tips: exchange rate fluctuation risk, showing the risk of technical iteration, the progress of projects under construction is less than expected, etc.
