\u3000\u3 Shengda Resources Co.Ltd(000603) 115 Nantong Haixing Electronics Co.Ltd(603115) )
Event overview
The company disclosed the pre increase announcement of performance in the first quarter of 2022. It is expected that the net profit attributable to shareholders of Listed Companies in the first quarter of 2022 will increase by 32 million yuan to 34 million yuan compared with the same period last year, with a year-on-year increase of 105.73% to 112.34%.
Analysis and judgment:
Downstream demand is strong, and the company’s performance continues to grow
As a supplier of electrode foil, the core raw material of electrolytic capacitor, the company fully benefits from the rapid growth of carbon neutralization industry. The company expects to realize the net profit attributable to shareholders of Listed Companies in the first quarter of 2022, which will increase by 32 million yuan to 34 million yuan compared with the same period last year, with a year-on-year increase of 105.73% to 112.34%. In the first quarter of 2022, the net profit attributable to shareholders of listed companies after deducting non recurring profits and losses will increase by 29 million yuan to 31 million yuan compared with the same period last year, with a year-on-year increase of 104.27% to 111.46%. At the same time, we believe that the company’s energy structure optimization and active layout of non coal energy have great advantages under the background of rising coal prices. According to the company’s announcement, the company’s production bases mainly include Jiangsu Nantong base, Sichuan Ya’an base and Ningxia Shizuishan base. Among them, Nantong base is mainly engaged in corrosion production of medium and high pressure products, corrosion production and chemical production of low pressure products; Ya’an base is mainly engaged in the chemical production of medium and high voltage products and a small amount of low-voltage products. The energy use is mainly hydropower; Shizuishan base is mainly engaged in the chemical production of medium and high voltage products, and the energy use is mainly photovoltaic and coal. At present, the company’s production capacity layout is reasonable and the cost advantage is prominent.
Multiple advantages consolidate the leading position, and the expansion of production can help the company benefit quickly
The company has mastered a number of industry-leading technologies such as expansion corrosion tunnel hole growth control technology, corrosion foil consistency technology and chemical depolarization technology. The technical indicators of its own products rank first in China and even at the international advanced level Nantong Haixing Electronics Co.Ltd(603115) has accumulated high-quality customer resources, including NCC, Nichicon, South Korea Sanhe, South Korea Sanying, Nantong Jianghai Capacitor Co.Ltd(002484) , Hunan Aihua Group Co.Ltd(603989) , Taiwan Jinshan, etc. At the same time, it has low dependence on a single customer and reasonable customer structure. The company’s products have passed iatf16949 certification and successfully entered the automotive electronic supply chain system Nantong Haixing Electronics Co.Ltd(603115) is the only electrode foil manufacturer in China that has passed the certification standard. At the same time, Nantong Haixing Electronics Co.Ltd(603115) undertook major national projects in 2019 and passed the high score acceptance in 2021 to solve the import substitution of electrode foil for automotive electronics.
Investment advice
Considering the current macro situation and bulk and energy prices, we maintain the company’s 2021 profit forecast and slightly revise the company’s 20222023 profit forecast. We predict that the company’s operating revenue in 20212023 will be divided into 1.625 billion yuan, 2.070 billion yuan and 2.570 billion yuan; The net profit attributable to the parent company in 2021 was 221 million yuan, and the net profit attributable to the parent company from 2022 to 2023 was 336 million yuan, 419 million yuan to 316 million yuan and 403 million yuan; The EPS in 2021 is 0.92 yuan, and the EPS of the company from 2022 to 2023 is 1.5 yuan 40 yuan and 1.75 yuan to 1.32 yuan and 1.68 yuan, corresponding to the closing price of 18.33 yuan / share on April 18, 2022. PE is 20x, 14x and 11x respectively, maintaining the “buy” rating.
Risk tips
The installed capacity of photovoltaic is less than expected; The sales volume of new energy vehicles is lower than expected; The price rise of upstream raw materials increases the cost of the company; Power restriction affects the commencement of the company; Repeated outbreaks affect the supply of raw materials.
