\u3000\u3 Shengda Resources Co.Ltd(000603) 688 Jiangsu Pacific Quartz Co.Ltd(603688) )
The company issued the annual report of 2021. The company released its annual report for 2021. In 2021, the company achieved revenue of 960 million yuan, yoy 48.8%, and net profit of 280 million yuan, yoy 49.4%. The company achieved revenue of 280 million yuan in Q4, with a year-on-year increase of 60.2%, net profit of 110 million yuan in Q4 and yoy169.9% 3%。 Benefiting from the strong demand for downstream photovoltaic and semiconductor, the price of quartz sand continued to rise, driving the rapid growth of the company’s revenue.
The installed capacity of photovoltaic has increased rapidly, and the volume and price of high-purity quartz sand have risen simultaneously. In 2021, the company’s high-purity quartz sand (photovoltaic business) grew rapidly, achieving a revenue of 300million yuan, an increase of 111% year-on-year. In 2021, the company exported 140.67 million tons of high-purity quartz sand, with an average sales price of 21500 yuan, a year-on-year increase of 9%.
In terms of production capacity, the company’s annual output of 20000 tons of high-purity quartz sand project has been completed, and the output will be gradually released. At the same time, with the acquisition of Qiangbang shares and the continuous construction of 15000 tons of project, the company’s production capacity is expected to continue to grow.
At the same time, benefiting from the continued strong installed capacity of downstream photovoltaic, the rising demand for n-cell crucibles and the increase in the proportion of inner surface sand of the company’s crucible, the average sales price of the company’s high-purity quartz sand is expected to continue to strengthen, driving the company’s photovoltaic business to continuously realize the simultaneous rise of volume and price.
The semiconductor business has accelerated its expansion and passed a number of international certifications. In 2021, the company’s optical fiber semiconductor business realized a revenue of 300 million yuan, a year-on-year increase of 46.4%. In 2021, the company passed a number of international semiconductor equipment factory certification, including Tokyo electronic etching field and American Lam etching certification, and American applied material certification also continued to make phased progress. At the same time, the company accelerated the construction of 6000 T / a electronic grade quartz products to further meet the needs of Chinese and foreign markets and localization. We believe that as the company’s electronic grade quartz sand accelerates to obtain various international certifications, the company’s optical fiber semiconductor business continues to accelerate its expansion under the trend of accelerated domestic substitution of semiconductor materials.
The photoelectric business was steadily transformed and the resumption of work was actively promoted. In 2021, the company achieved revenue of 320 million yuan in photoelectric business, with a year-on-year increase of 15.3%. The company’s photoelectric business has accelerated structural transformation and promoted the growth of market share in high-end light sources such as infrared heating, UV curing, UV disinfection and high-quality analysis. At the same time, with the growth of disinfection light source and other emerging markets under the epidemic, we expect the company’s photoelectric business to obtain more new growth momentum. In terms of the impact of the epidemic, the company announced on April 6 that the company had partially stopped production since March 11 and resumed production in an orderly manner recently. We expect that with the gradual normalization of the company’s production, the impact of shutdown on the annual performance will be controllable.
Profit forecast: we predict that the company’s revenue from 2022 to 2024 will be RMB 1.682/25.153014 billion, net profit will be RMB 551822/918 million and EPS 1.5% 56 / 2.33/2.60 yuan, corresponding to P / E 37.7/25.3/22.6x. As the proportion of the company’s semiconductor and photovoltaic business continues to increase and the demand continues to be strong, the company’s revenue and profit will continue to grow high and maintain the “buy” rating.
Risk tip: the installed capacity of photovoltaic is less than expected, and the shipment of semiconductor is less than expected
