\u3000\u3 Guocheng Mining Co.Ltd(000688) 550 Xi'An Manareco New Materials Co.Ltd(688550) )
Event: Xi'An Manareco New Materials Co.Ltd(688550) released the annual report of 2021. During the reporting period, the company achieved a revenue of 1.526 billion yuan, a year-on-year increase of + 45.35%; The net profit attributable to the parent company was 240 million yuan, a year-on-year increase of + 36.7%. Among them, 2021q4 company achieved revenue of 392 million yuan, a year-on-year increase of + 21.72% and a month on month increase of - 12.03%; The net profit attributable to the parent company was 71 million yuan, with a year-on-year increase of + 37.46% and a month on month increase of + 6.37%. A cash dividend of 17.00 yuan (including tax) was distributed to all shareholders for every 10 shares. The company released the first quarterly report of 2022. During the reporting period, the company achieved a revenue of 425 million yuan, a year-on-year increase of + 38% and a month on month increase of + 8.29%; The net profit attributable to the parent company was RMB 80 million, with a year-on-year increase of + 57.91% and a month on month increase of + 11.74%.
It shows that the material sector has a high growth and the performance is in line with expectations. According to the announcement, in 2021, the sales revenue of the company's display materials and medicine sector was + 58% and + 14% year-on-year, corresponding to the gross profit margin of 29.8% and 61.4%, with a month on month ratio of -1.3pct and -6.8pct. Generally, the display materials contributed greatly. The strong demand for electronic terminal products caused by the epidemic led to a significant increase in the demand for upstream LCD and OLED materials. The sales revenue of 22q1 display materials sector was + 51% year-on-year, and the boom continued, In terms of product structure, the proportion of OLED business in the revenue of light-emitting layer materials increased to 73% in 2021, the supply of key products deuterated blue light materials increased steadily, and the sales volume increased by 210% year-on-year, making a great contribution; In the pharmaceutical sector, the sales volume of pa0045 in 2021 was + 38% year-on-year. Due to the price reduction of the product at the end of 2020, and the epidemic affected the R & D, clinical or listing progress of terminal drugs corresponding to some companies' pharmaceutical pipelines, the gross profit of cdmo business revenue was affected. To sum up, considering the impact of exchange gains and losses and rising prices of raw materials, companies 21q4 and 22q1 achieved gross profits of 147 and 161 million yuan, a year-on-year increase of + 15% and + 42%; The gross profit margin was 37.5% and 37.9%, with a year-on-year rate of - 2.3pct and + 1.2pct, and the expense rate (four fees & taxes) was 14.8% and 16.9%, with a year-on-year rate of - 5.7pct and - 0.9pct.
The projects under construction are advancing steadily, and high-intensity R & D investment is expected to bring achievement transformation. According to the announcement, in terms of construction in progress, the OLED material raised investment project 21q4 has been gradually put into use, the main auxiliary works and service facilities of the high-end liquid crystal material project have been completed, and the workshop of phase I of Ruilian pharmaceutical API project has been steadily promoted. In addition, in 2021, the company invested in the construction of Pucheng Haitai new energy material automation production project, laying out the film-forming additives of lithium battery electrolyte, vinyl carbonate (VC) and fluorovinyl carbonate (FEC), It is expected to be put into operation in the second half of 2022. According to the announcement, the company's R & D expenses in 2021 totaled 83 million yuan, a year-on-year increase of + 97%. By the end of 2021, the number of pharmaceutical pipelines of the company had reached 100, an increase of 39 compared with the end of 2020. In addition, the company in the electronic and chemical sector has developed many products such as membrane material intermediates, PI monomers, PR monomers and organic insulating film materials. The number of customers and products sold in 2021 increased rapidly, and it is expected to create new performance growth points in the future.
Investment suggestion: it is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 325 million, 421 million and 520 million yuan, maintaining the Buy-A investment rating.
Risk tip: the product demand is less than expected, the project construction progress is less than expected, and the progress of API R & D and certification is less than expected.
