\u3000\u3 Guocheng Mining Co.Ltd(000688) 550 Xi'An Manareco New Materials Co.Ltd(688550) )
Q1 performance continued to grow year-on-year and month on month. The company has sufficient growth momentum and maintains the "buy" rating
On April 19, the company released the first quarterly report of 2022, realizing a revenue of 425 million yuan, a year-on-year increase of + 38.0% and a month on month increase of + 8.4%; Deducting the net profit not attributable to the parent company was 757677 million yuan, with a year-on-year increase of + 77.8% and a month on month increase of + 21.7%, and the Q1 performance increased continuously month on month. We maintain the profit forecast. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 313, 408 and 533 million, corresponding to EPS of RMB 446, 5.81 and 7.59 per share, and the current share price corresponding to PE of 20.3, 15.6 and 11.9 times. Benefiting from the high boom of OLED display, while the company continues to expand the extended application of core technology in medicine and electrolyte additives, high R & D investment provides sufficient growth momentum and maintains the "buy" rating.
The increase in sales of OLED products with high gross profit helped the continuous high growth of display materials, and the overall gross profit margin increased
According to the company's announcement, the year-on-year growth of Q1 revenue is mainly due to the continued high-speed growth of the display material business, especially the significant increase in the sales volume of foreign customers, which helped the sales revenue of Q1 display material business increase by 51% year-on-year. In addition, the increase in the sales volume of OLED high gross profit products led to the increase of the overall sales gross profit margin. Q1 company realized a net profit attributable to the parent company of 798028 million yuan, a year-on-year increase of + 57.91%, and the corresponding net profit margin increased to 18.8%. In 2021, the company accounted for about 17% of the global OLED pre sublimation material market and about 27% of the global single crystal Market; Affected by exchange rate changes, raw material price increases and other factors, the overall gross profit margin was -4.97pcts year-on-year and the net profit margin was -0.99pcts year-on-year. We believe that as the exchange rate and raw material prices tend to stabilize, the company's profitability is gradually returning to normal, and is expected to continue to benefit from the continuous penetration of large-scale OLED display and the wide application of deuterium blue organic materials.
The company maintains high R & D investment, and pharmaceutical cdmo and electrolyte additives help its growth
According to the company's announcement, Q1 R & D investment advanced 25 million 170 thousand and 500 yuan, an increase of 42.28% over the same period, accounting for 5.92% of the revenue, up from +0.17pcts. As of 2021, the company has sold 4 pharmaceutical intermediate products of tens of millions of grade, including 100 pharmaceutical pipelines, including 72 projects in which the terminal drugs are innovative drugs, 27 generic drugs and 1 unknown, an increase of 39 compared with the end of 2020; Pucheng Haitai new energy materials project of the company can produce 1500 tons of VC products and 500 tons of FEC products per year. It is expected to contribute 50% of the revenue of the electronic chemicals sector after it is put into operation in 2022; Continuously expanding the extended application of core technology in pharmaceutical cdmo and electrolyte additives will add sufficient impetus to the growth of the company.
Risk tips: exchange rate fluctuation risk, showing the risk of technical iteration, the progress of projects under construction is less than expected, etc.
