\u3000\u3 Guocheng Mining Co.Ltd(000688) 378 Jilin Oled Material Tech Co.Ltd(688378) )
Event: on the evening of April 21, the company released its annual report for 2021. In 2021, the company achieved a revenue of 406 million yuan, a year-on-year increase of 43.17%; The net profit attributable to the parent company was 136 million yuan, a year-on-year increase of 89.19%. In 2021, Q4 company achieved a revenue of 23.64 million yuan, a year-on-year decrease of 78.37% and a month on month decrease of 82.01%; The net profit attributable to the parent company was -10.86 million yuan, down 129.86% year-on-year and 123.40% month on month.
The company’s performance has been significantly improved due to the large amount of steam source equipment and organic light-emitting materials. In 2021, the company’s revenue from steam source equipment business and organic light-emitting materials business was 262 million yuan and 144 million yuan respectively, with a year-on-year increase of 39.0% and 52.8% respectively. In terms of sales volume, the sales volume of steam source equipment and organic light-emitting materials of the company increased by 37.8% and 45.1% respectively in 2021. In the case of substantial fluctuations in raw material costs, the gross profit margin of the company’s steam source equipment business and organic light-emitting materials business remained basically stable in 2021. In addition, the company disclosed the performance forecast of Q1 in 2022 on April 1. The company expects to realize a net profit attributable to the parent company of 79 ~ 89 million yuan in 2022q1, with a year-on-year increase of 51.61% ~ 70.80%. Among them, the sales revenue of steam source equipment of 2022q1 company is expected to increase by 76% year-on-year, and the sales revenue of organic light-emitting materials is expected to increase by 10% year-on-year.
New layout packaging materials and flexible PI are added to accumulate growth potential. At present, the company is building a project of high-performance luminescent materials for AMOLED with an annual output of 10 tons. By the end of 2021, the progress of the project has reached 91%. In terms of steam source equipment, the company conducted G8 5 (g8.6) technology development and reserve of high generation evaporation source, and increase R & D and industrialization in the manufacturing of small evaporation machine. In 2021, the R & D investment was 86.29 million yuan, a year-on-year increase of 66.4%. In addition to the above expansion of the original business, the company also has packaging materials and flexible PI business. By the end of 2021, the company’s packaging materials have passed the production line test of Everdisplay Optronics (Shanghai) Co.Ltd(688538) and become its first qualified supplier in China. At the same time, the company’s packaging materials are also undergoing production line test at BOE, Visionox Technology Inc(002387) , Tianma and other panel manufacturers, and the company’s flexible PI project is actively promoting the evaluation of panel manufacturers.
Issue equity incentive plan to bind the interests of core members. The company plans to grant 1066400 restricted shares to 86 incentive objects at a price of 24.01 yuan / share. The awarding objects include the company’s directors, senior managers and core technicians, which is conducive to binding the interests of the company’s core members and improving the company’s cohesion. The incentive plan takes the revenue and net profit of 20222024 as the assessment objectives (one of the revenue or net profit objectives can be met). The corresponding revenue objectives of 20222024 are 528 / 686 / 892 million yuan respectively, and the corresponding net profit objectives of 20222024 are 177 / 230 / 299 million yuan respectively.
Profit forecast, valuation and rating: the company’s performance in 2021 is lower than expected. Considering the rhythm of subsequent company’s product recognition Revenue, we lowered the company’s profit forecast for 22-23 years and added the profit forecast for 24 years. It is estimated that the net profit attributable to the parent company in 22-24 years will be 1.97 (down 25.1%) / 2.59 (down 29.6%) / 330 million yuan respectively. We are still optimistic about the company’s leading position in China in the field of steam source equipment and OLED light-emitting materials, continue to pay attention to the company’s progress in new production capacity and new products, and maintain the company’s “buy” rating.
Risk warning: the revenue of product order confirmation is delayed, the capacity construction is less than expected, and the product verification risk.
