\u3000\u3 Shengda Resources Co.Ltd(000603) 650 Red Avenue New Materials Group Co.Ltd(603650) )
On April 15, Red Avenue New Materials Group Co.Ltd(603650) released the annual report of 2021. The company achieved a revenue of 2.308 billion yuan in 2021, an increase of 12.83% year-on-year; The net profit attributable to the parent company was 327 million yuan, a year-on-year decrease of 20.44%; The net profit deducted from non return to parent was 247 million yuan, a year-on-year decrease of 33.13%. Corresponding to the single quarter of 21q4, the company achieved a revenue of 594 million yuan, an increase of 8.89% year-on-year and 9.57% month on month; The net profit attributable to the parent company was 51 million yuan, a year-on-year decrease of 37.65%.
The rising cost of rubber materials put pressure on the company's performance Red Avenue New Materials Group Co.Ltd(603650) deeply cultivate the main business of special materials, focusing on the development of electricity
Sub material business, actively expand market share, expand business scale and further optimize business structure. In 2021, the company's new business performance was outstanding: 1) the revenue of special rubber auxiliary materials reached 2.167 billion yuan, with a year-on-year increase of 5.9% and a gross profit margin of 24.87%. 2) The revenue of electronic materials reached 141 million yuan, with a gross profit margin of 25.86%. 3) The revenue of all biodegradable materials reached 1.5904 million yuan, with a gross profit margin of 9.39%. Electronic materials and fully biodegradable materials are new categories this year, and the classification of other self-produced products has been adjusted.
Photoresist customer verification is good, ushering in new opportunities for development. The company cut into the semiconductor business through photoresist products.
In 2021, the photoresist business revenue reached 115 million yuan, with a year-on-year increase of 28.8%. The market share of the company's line g photoresist reached 60%. Line I and KrF photoresist were supplied in batches to Semiconductor Manufacturing International Corporation(688981) , Huahong Hongli, Changjiang storage and other front-line customers. In 2021, the company added 21 new products, which were verified by customers and obtained orders. The sales of new products reached 25.96% of the total sales of semiconductor photoresist, rising continuously. The company's 12 inch customers increased to 13, an increase of 160%, and 8-inch customers increased to 17, an increase of 70%. In addition, in the environment of photoresist international giant Xinyue reducing production and increasing demand in China, Chinese photoresist suppliers ushered in a historical opportunity. The new Beixu electronic factory, one of the main business entities of the company's photoresist, was put into operation in 22q2. With the continuous increase of output and budget, the photoresist business continued to rise.
The price of raw materials + the epidemic affected the rubber additives business, and the price transmission performance is expected to rebound. Special rubber is Tongcheng
For the traditional business of Xincai, in 2021, the company continued to implement the key customer strategy, continued to develop and promote key customers and key products, and optimized the customer structure. In the whole year, the company produced 120800 tons of special rubber additives and sold 144400 tons, realizing a revenue of 2.167 billion yuan, an increase of 5.9% over the same period of the previous year. The rise in the price of raw materials, the impact of the epidemic and the rise in freight in the second and third quarters led to the short-term pressure on the overall performance of the company in 21 years. However, the company has actively negotiated with customers and adjusted its pricing strategy, and the cost pressure is expected to be gradually relieved.
The introduction of degradable biomaterial technology and the expansion of production capacity are conducive to the release of production capacity of overseas companies. The company is biological
Industry leader in degradable materials and processing technology, committed to promoting advanced environmental protection concepts. The company introduced PBAT polymerization technology and launched a 100000 t / a biodegradable material project in Shanghai Chemical Industry Park to provide customers with complete biodegradable solutions through upstream and downstream integration, so as to meet the application of high-end biodegradable products in shopping bags, express bags and agricultural mulch in the future. The degradable materials developed by the company have begun to be verified on the client. In addition, due to the conflict between Russia and Ukraine, the main production place in Europe began to reduce production, which is conducive to the release of the company's production capacity.
Investment suggestion: it is estimated that the net profit attributable to the parent company in 22-24 years will be 591 / 788 / 876 million yuan, corresponding to 31 / 23 / 21 times of PE. The company's capacity continues to expand, the customer verification is good, and the company can expect to maintain the "recommended" rating in the future.
Risk warning: price fluctuation of raw materials; Production capacity construction is less than expected; Intensified market competition
