\u3000\u3 Guocheng Mining Co.Ltd(000688) 550 Xi’An Manareco New Materials Co.Ltd(688550) )
Xi’An Manareco New Materials Co.Ltd(688550) 2021: the operating revenue reached 1.526 billion yuan, with a year-on-year increase of 45%; The net profit attributable to shareholders of listed companies was 240 million yuan, a year-on-year increase of 37%. In 2022q1, the operating revenue was 425 million yuan, a year-on-year increase of 38%; The net profit attributable to shareholders of listed companies was 80 million yuan, a year-on-year increase of 58%.
Key investment points:
The display materials continue to exceed expectations, and the comprehensive performance of 2021 and 2022q1 is good. In terms of display materials: 1. In 2021, the company’s OLED materials achieved a sales revenue of 437 million yuan, a year-on-year increase of 55%, and the company’s market share in the field of global pre sublimation materials increased to 17%. On the one hand, the penetration of OLED panels in various fields has driven the growth of upstream material demand; On the other hand, the company’s large-scale sales of deuterated blue light materials increased by 210% year-on-year, contributing a large increment. The situation of OLED companies with more than 100kg batches of materials has improved. Considering that the current OLED industry is still in a period of rapid development, and the company continues to realize large-scale production of new light-emitting material products, it is expected that the company’s OLED materials will continue to maintain considerable performance growth in 2022. 2. In 2021, the liquid crystal materials sector grew more than expected, with a sales revenue of 765 million yuan, a year-on-year increase of 59.40%. The company’s share in the global single crystal market reached about 27%, mainly due to the phased repair of downstream demand caused by the epidemic and the increase of large-size LCD panel shipments. In 2022, with the weakening of the phased impact of the epidemic, the performance growth of the company’s liquid crystal materials may slow down year-on-year. However, based on the application and cost performance of LCD panel in large-scale field, as well as the company’s good product and customer structure, liquid crystal materials will continue to provide a stable source of performance for the company in the future. In the first quarter of 2022, thanks to the continuous high growth of display material business and the increase of sales volume of high gross profit products in OLED sector, the company’s performance ushered in a “good start”, with a total operating revenue of 425 million yuan, a year-on-year increase of 38%; The net profit attributable to the shareholders of the listed company was 79.8 million yuan, a year-on-year increase of 58%. In terms of pharmaceutical business, the sales revenue in 2021 was 281 million yuan, a year-on-year increase of 13.7%, and the gross profit margin fell to 61.4%, a year-on-year decrease of 6.8 PCTs. The small increase in the sector and the decline in profitability are mainly due to the fact that the epidemic has dragged down the production progress of some products of the company, the price reduction of key products, and the decline in the sales volume of individual products due to the change of production plans of some customers. At present, the scale of China Meheco Group Co.Ltd(600056) cdmo industry is expanding rapidly, and the company also takes the pharmaceutical business as one of the key development directions. In 2021, the company successfully added 39 pharmaceutical pipelines, a total of 100 pharmaceutical pipelines, of which 32 are in the process of commercialization. The company cooperates closely with downstream high-quality customers, and the company’s pharmaceutical business will still have great development momentum in the future. In terms of electronic chemicals, the company has many products such as membrane material intermediates, PI monomers, PR monomers and organic insulating film materials. In 2021, the product sales volume and the number of customers increased. The annual sales revenue of the sector was 42.06 million yuan, a year-on-year increase of 5.08%. Another VC and FEC materials will be put into operation in 2022. It is expected that they will contribute 50% of the revenue to the electronic chemicals sector in 2022, which will add new momentum to the growth of the company at that time.
R & D investment continues to increase, and the hard power of scientific and technological innovation enables the sustainable development of the company. In 2021, the company’s R & D expenses totaled 83.31 million yuan, with a year-on-year increase of about 97%. The R & D expense rate was 5.46%, with a year-on-year increase of 1.43 PCT. In the same period, there were 369 scientific research and technical personnel, with a year-on-year increase of 174, accounting for about 20% of the total number of the company, and about 24% of the scientific research personnel were graduate students or above. In 2021, the company completed a total of 479 scientific research and development projects, including 100 LCD projects, 172 OLED projects, 106 pharmaceutical projects and 101 other business projects. The projects under research mainly focus on OLED luminescent materials, pharmaceutical intermediates, APIs and other fields. The continuous increase of R & D investment and the continuous expansion of high-level R & D team effectively ensure the steady commercialization of laboratory results in all business areas of the company in the future, and provide a high-quality driving force for the company’s long-term expansion of product structure, performance growth and technological progress.
Profit forecast and investment suggestions: it is expected that the company will realize a net profit attributable to the parent company of RMB 325 / 416 / 521 million from 2022 to 2024, and the corresponding PE is 19.54/15.25/12.19 (corresponding to the closing price of RMB 90.48 on April 19), maintaining the “buy” rating.
Risk factors: it shows the risk of intensified competition in the material industry and decline in product profitability; Exchange rate fluctuation risk; The risk that the orders of downstream customers are less than expected; The progress of the project under research is less than the expected risk.
