\u3000\u30 Zhongyan Technology Co.Ltd(003001) 96 Jiangsu Changhai Composite Materials Co.Ltd(300196) )
Event Jiangsu Changhai Composite Materials Co.Ltd(300196) released the annual report of 2021, realizing an operating revenue of 2.506 billion yuan, a year-on-year increase of 22.71%; The net profit attributable to the parent company was 572 million yuan, a year-on-year increase of 111.46%; The net profit attributable to the parent company after deduction was 489 million yuan, a year-on-year increase of 93.26%.
The volume and price rose together, and the company’s performance increased steadily. In 2021, the company achieved an operating revenue of 2.506 billion yuan, a year-on-year increase of 22.71%; The total profit was 660 million yuan, a year-on-year increase of 113.34%, and the company’s performance maintained a stable growth, slightly higher than the industry level (in 2021, the industry’s revenue reached 124.4 billion yuan, a year-on-year increase of 21.4%; the total profit reached 23.14 billion yuan, a year-on-year increase of 95.5%). In 2021, driven by the demand of new application fields such as automobile, electronics and wind power in China, the high prosperity of glass fiber industry continued, and the volume and price of glass fiber increased simultaneously, driving the company’s performance to be better. In 2021, the sales volume of glass fiber and products of the company was 204100 tons, with a year-on-year increase of 4.02%. According to the data of Zhuo Chuang information, the ex factory price of Jiangsu Changhai Composite Materials Co.Ltd(300196) wound direct yarn was 2400 Texes in 2021, which was 5951 yuan / ton, up 39.16% year-on-year. The price of glass fiber roving in 2021 was at an all-time high. In addition, the overseas market demand improved significantly in 2021, with a revenue of 563 million yuan, a year-on-year increase of 38.7%.
The gross profit margin was higher than the industry average, and the three expense rates decreased significantly. In 2021, the company’s sales gross profit margin was 33.72%, much higher than the industry average. In 2021, the overall sales profit margin of glass fiber and products enterprises above designated size was 18.6%. Among them, the gross profit margin of the company’s main product glass fiber and products (revenue accounting for 68.77%) reached 40.85%, an increase of 9.72 percentage points year-on-year. In terms of expenses, the three expense rate of the company was 6.39%, a year-on-year decrease of 2.68 percentage points; The sales / management / financial expense ratio was 2.26% / 3.58% / 0.45% respectively, with a year-on-year decrease of 1.54/0.53/0.62 percentage points. The increase of gross profit margin and the decrease of expense rate show that the improvement of the company’s profitability is conducive to improving the company’s competitiveness.
It is planned to build five felt production lines with a total capacity of 1 billion square meters / year (the expansion of two production lines has been completed by the end of 21), and the subsidiary Tianma Group will expand the original production line of 25000 tons of unsaturated polyester resin to 100000 tons (currently in the commissioning stage). With the above production lines put into operation, the company’s business system will be gradually improved. In addition, recently, the company announced that it plans to upgrade its subsidiary’s glass fiber tank furnace drawing production line with an annual output of 30000 tons and expand the production line of high-end high-performance glass fiber and special fabrics with an annual output of 80000 tons; At the same time, the company plans to invest in the construction of Shanghai Pudong Development Bank Co.Ltd(600000) tons of high-performance glass fiber intelligent manufacturing base project, which is currently under approval. In the long run, the company’s glass fiber production capacity is expected to increase by about 700000 tons, the main business volume and enterprise market share will be further improved, and the company’s future performance can be expected
Establish the glass fiber industry chain and optimize the resource allocation. The company and its subsidiary Tianma Group have carried out vertical and horizontal industrial extension in the glass fiber industry respectively, forming a complete industrial chain layout of “glass fiber yarn glass fiber products resin composites”. Through optimizing the allocation of relevant business resources, the company and its subsidiary Tianma Group realize the complementarity of raw materials and products and reduce the cost of raw materials and related expenses. By further strengthening internal management, the company effectively improves management and operation efficiency and overall profitability.
It is suggested that with the rapid development of new applications in the downstream of China’s glass fiber and the rapid recovery of overseas markets, the high prosperity of the glass fiber industry continues. It is expected that the glass fiber market demand will remain strong in 2022, and the high demand will continue to support the glass fiber roving price to maintain a high level. At the same time, with the expansion and production of the company’s glass fiber production line, the glass fiber production capacity, business sales and market scale will continue to expand, and the main business performance is expected to be further improved; At the same time, the expansion of resin production capacity will continue to optimize the resource allocation of glass fiber industrial chain, expand the layout of industrial chain and enhance the competitiveness of enterprises. The company has great development space in the future. It is estimated that the net profit attributable to the parent company in 22-24 years is 705 / 8.56 / 1015 million yuan, the earnings per share is 1.72/2.10/2.48 yuan, and the corresponding P / E ratio is 8 / 7 / 6 times. Maintain the “recommended” rating based on the company’s good development expectations.
The risk indicates that the company’s capacity expansion is less than the expected risk; The demand of downstream application field is lower than the expected risk; Glass fiber price fluctuation exceeds the expected risk.
