\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 137 Ningbo Boway Alloy Material Co.Ltd(601137) )
Event: on April 18, 2022, the company released the 2021 annual performance report, and the company realized business
The revenue was 10.038 billion yuan, a year-on-year increase of 32.27%, and the profit attributable to the parent company was 310 million yuan, a year-on-year decrease of 27.66%.
Comments: the company continues to be optimistic about the long-term development of the company as a material platform company. The company has accumulated a lot of experience in alloy R & D. with the conversion of R & D achievements, it has gradually realized the transformation to high-end copper alloy sector and strip. At present, the products cover 17 alloy series, which can provide professional products and services for nearly 30 industries such as downstream automotive electronics, semiconductor chip and 5g communication.
In 2021, the company realized a profit attributable to the parent company of 310 million yuan, of which Q4 realized a profit attributable to the parent company of 48 million yuan in a single quarter, a year-on-year decrease of 37.02% and a month on month decrease of 51.99%, mainly due to the sharp rise in sea freight caused by the global epidemic in the company’s photovoltaic new energy business, the high price of raw materials represented by silicon due to the outbreak of the industry, and the tariff imposed by the United States on double-sided modules. Meanwhile, the provision for asset impairment totaled 61 million yuan, including 53 million yuan of credit asset impairment and 08 million yuan of asset impairment loss.
1. New material business: in terms of new material business, the company achieved an operating revenue of 9.073 billion yuan, a year-on-year increase of 49.76%; The net profit was 391 million yuan, a year-on-year increase of 41.36%. Under the condition that the total sales volume of new materials business increased by 16.60%, the net profit of the company achieved a rapid growth of 41.36%, which was mainly due to the increase in the downstream proportion of high added value brought by the company’s R & D achievements, and the rapid growth of sales in the fields of transportation equipment, engineering machinery, mineral equipment, energy equipment and key parts of new energy vehicles. The company’s business model is based on the mode of “raw materials + processing fee”. Therefore, the price rise of upstream metal bulk materials in 2021 has low relevance to the company’s profits, mainly due to the continuous improvement of the average profitability of the company’s new materials business, and the gross profit per ton continues to increase to 6303 yuan compared with 2020 (6268 yuan).
2. New energy business: the profit of photovoltaic new energy business was -80 million yuan, a year-on-year decrease of 152.66%. The company’s photovoltaic business suffered losses in 2021 due to the rapid rise in shipping costs, tariffs and material prices. The above situation is expected to improve this year and turn losses in new energy business.
3. Outlook for 2022: the company’s business objectives are: the total sales target of new materials business is 238500 tons, including 65000 tons of alloy strip, 106000 tons of alloy bar, 34500 tons of alloy wire rod and 33000 tons of precision filament; New energy business: the sales target of components is 1000MW. All sections of the company’s new materials business are expected to achieve comprehensive growth. At the same time, the company is currently carrying out production line certification according to the specific requirements of various automotive electronic customers. It is expected to complete production line certification by the end of June this year. After the completion of certification, it will quickly digest the company’s new production capacity and bring strong support to the company’s profit growth.
Investment suggestion: we expect the net profit of the company in 22-24 years to be RMB 650 / 859 / 1143 million respectively, maintaining the “buy” rating.
Risk tip: the conversion rate of R & D industrialization is low; International operation risk; Risk of rising freight of new energy business
