\u3000\u3 China Vanke Co.Ltd(000002) 080 Sinoma Science & Technology Co.Ltd(002080) )
The company released the first quarterly report of 2022 on April 21, with Q1 revenue of 4.66 billion yuan, a year-on-year increase of 15.9% and a month on month decrease of 17.5%; The net profit attributable to the parent company was 730 million yuan, a year-on-year increase of 24.5% and a month on month increase of 1.2%.
Key points supporting rating
The company’s revenue was in line with expectations, and its profit increased year-on-year and remained the same month on month: in 2022q1, the company’s revenue was 4.66 billion yuan, a year-on-year increase of 15.9% and a month on month decrease of 17.5%; The net profit attributable to the parent company was 730 million yuan, a year-on-year increase of 24.5% and a month on month increase of 1.2%. The gross profit margin and net profit margin of sales were 29.8% and 16.7% respectively, with year-on-year changes of – 1.1pct and 1.6pct, up 4.9pct and 3.6pct respectively.
Glass fiber: the company announced the new production capacity construction plan, and the industry demand is improving, but the supply is increasing more: the company’s glass fiber production capacity ranks second in China. This announcement plans to invest 620 million yuan to build a high modulus and high strength glass fiber production line with an annual output of 60000 tons, and the company’s product structure will be further optimized. The demand side of glass fiber, wind power, new energy vehicles and other markets will continue to boom, but the continuous increase of production capacity at the supply side will bring some pressure. We expect that the price of roving is expected to remain stable, and the price of electronic yarn is stable and weak.
Wind power: the industry demand continues to be strong, and the leading position of the company is stable: according to the prediction of China Power Council, China’s grid connected wind power will add about 50gw in 2022, basically the same as that in 21 years. At present, the company’s blade capacity ranks first in the country, and announced a total of 760 wind power blade capacity construction projects in December 2021 and March 2022, and the leading market share will be further increased.
Valuation
The company’s performance is in line with expectations, and we maintain the original profit forecast. It is estimated that the company’s revenue from 2022 to 2024 will be 22.79 billion yuan, 25.94 billion yuan and 29.06 billion yuan; The net profit attributable to the parent company was 3.88 billion yuan, 4.37 billion yuan and 4.87 billion yuan respectively; EPS is 2.31, 2.61 and 2.90 yuan respectively. Maintain the company’s buy rating.
Main risks of rating
The production capacity of glass fiber was put into operation more than expected, the offshore wind power continued to be depressed, and the capacity digestion of lithium film was less than expected.
