\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 87 Sunresin New Materials Co.Ltd Xi’An(300487) )
Event: on April 22, 2022, Sunresin New Materials Co.Ltd Xi’An(300487) released the annual report of 2021: the operating revenue was 1.195 billion yuan, an increase of 29.51% year-on-year; The net profit attributable to the shareholders of the listed company was 311 million yuan, a year-on-year increase of 53.85%; The weighted average return on net assets was 16.43%, an increase of 1.57 percentage points year-on-year. The gross profit margin of sales was 44.57%, a year-on-year decrease of 2.05 percentage points; The net profit margin on sales was 25.56%, up 4.37 percentage points year-on-year.
Among them, Q4 achieved a revenue of 304 million yuan in 2021, a year-on-year increase of + 26.46% and a month on month increase of – 9.36%; The net profit attributable to the parent company was 73 million yuan, with a year-on-year increase of + 92.94% and a month on month increase of – 16.23%. The gross profit margin of sales was 39.77%, a year-on-year decrease of 2.88 percentage points and a month on month decrease of 5.53 percentage points; The net profit margin of sales was 23.28%, with a year-on-year increase of 7.67 percentage points and a month on month decrease of 2.51 percentage points.
At the same time, the company released the first quarterly report of 2022, and achieved a revenue of 332 million yuan in Q1 of 2022, a year-on-year increase of + 13.20% and a month on month increase of + 9.18%; The net profit attributable to the parent company was 81 million yuan, with a year-on-year increase of – 7.79% and a month on month increase of + 9.99%. The gross profit margin of sales was 43.38%, a year-on-year decrease of 6.22 percentage points and a month on month increase of 3.61 percentage points; The net sales interest rate was 23.71%, a year-on-year decrease of 5.30 percentage points and a month on month increase of 0.43 percentage points.
Comments:
The growth of basic business is strong, and the company’s performance has achieved rapid growth
In 2021, the downstream demand of all sectors of the company was strong, and the two new production capacities of Gaoling and Pucheng continued to be released, driving the rapid growth of production and sales volume and the significant improvement of performance. Among them, the company achieved a revenue of 1.195 billion yuan in 2021, a year-on-year increase of + 29.51%; The net profit attributable to the parent company was 311 million yuan, a year-on-year increase of + 53.85%. The sales volume of adsorption and separation materials was 322977400 tons, with a year-on-year increase of 58.53%; 83 sets of system devices were sold, with a year-on-year increase of 13.70%. In terms of business segments, the revenue of adsorption materials was 901 million yuan, a year-on-year increase of + 52.49%, and the gross profit margin reached 42.80%, a year-on-year decrease of 2.93 percentage points, mainly due to the increase of raw material prices; The system device achieved a revenue of 245 million yuan, a year-on-year increase of – 17.20%, and a gross profit margin of 49.17%, an increase of 2.46 percentage points year-on-year. From the perspective of large projects and basic business, the revenue of large projects (zangge and Jintai phase I) in 2021 was 112 million yuan, a year-on-year increase of – 38.80%; The revenue of basic business was 1.083 billion yuan, a year-on-year increase of + 46.35%. At the same time, after deducting large projects, the net profit of basic business increased by more than 100% year-on-year, with strong growth. With the continuous landing of signed orders, the company will enter the fast lane of development. In terms of period expenses, the ratio of sales / management / financial expenses of the company in 2021 was 2.74% / 12.87% / 0.20% respectively, and the change over the same period last year was + 0.17% / – 2.02% / – 4.21% respectively. The expenses were well controlled; Meanwhile, in 2021, the net cash flow from the company’s operating activities reached 350 million yuan, a year-on-year increase of 34.51%, mainly due to the increase in cash received from the sale of goods and the provision of labor services during the reporting period.
The demand of many downstream sectors is strong, and the Q1 performance in 2022 is improved month on month
In 2022, benefiting from the strong demand of many sectors in downstream application fields, the company’s sales orders increased and its operating revenue increased rapidly. In Q1 2022, the company achieved an operating revenue of 332 million yuan, a year-on-year increase of 13.20% and a month on month increase of 9.18%. In terms of net profit attributable to parent company, Q1 company realized net profit attributable to parent company of 805 million yuan in 2022, with a year-on-year decrease of 7.79% and a month on month increase of 9.99%. Compared with the same period last year, the net profit attributable to the parent company decreased, mainly due to the rising cost caused by the rising price of raw materials. Among them, the gross profit margin of Q1 company reached 43.38% in 2022, a year-on-year decrease of 6.22 percentage points; Compared with Q4 in 2021, the company’s net profit attributable to the parent company increased steadily. On the one hand, it benefited from the increase of revenue brought by the increase of sales orders. At the same time, the gross profit margin in Q1 in 2022 increased by 3.61 percentage points month on month, and the profitability was marginally improved. In terms of period expense rate, the company’s sales / management / financial expense rate in 2022 and Q1 was 1.68% / 12.81% / 0.64% respectively, with a year-on-year increase of + 0.07 / – 1.19 / + 1.25pct and a month-on-month increase of -3.45 / + 1.41 / + 2.60pct; Meanwhile, in 2022, the net cash flow from Q1’s operating activities reached 112 million yuan, a year-on-year increase of 110.27%, mainly due to the increase in cash received from the sale of goods and the provision of labor services in the current period.
Lithium extraction from salt lakes has achieved a breakthrough and metal resources have been promoted in multiple dimensions
The company takes the lithium industry chain as the leading business and gets good development in the reporting period. After the lithium extraction units of zangge, Jintai and Minmetals industrialized salt lakes were put into operation successfully, the company paid close attention to the rapid development of new energy industry and successively signed several orders, including Jintai phase II, Minmetals phase II transformation, Guoneng mining, Jinhai lithium, Tibet Summit Resources Co.Ltd(600338) , jinkunlun lithium, etc. the total contract amount reached 1.578 billion yuan, with a total capacity of 58000 tons of lithium carbonate / lithium hydroxide. At the same time, it will be responsible for the entrusted operation of Jieze Chaka Salt Lake for 15 years, The market position and competitiveness have been continuously enhanced. The company also extensively expands the overseas Salt Lake market and provides customized pilot test equipment and technical feasibility schemes for salt lakes in South America, Europe, North America and other places. At the same time, the company continues to expand the business dimension of hydrometallurgy. In terms of nickel extraction from laterite nickel ore, the high-efficiency nickel adsorbent developed by the company has reached the best performance index of international companies in the performance test of nickel ore in East Asia, and developed its own process to provide overseas customers with an overall solution of nearly 40 million yuan of adsorption materials and system devices; In terms of cobalt recovery, the company has won a whole line contract in the Democratic Republic of the Congo. At present, it has been successfully put into operation and produced cobalt products. The project will play an exemplary and stimulating role in the industry; In terms of extracting gallium from alumina mother liquor, the company has always maintained a high market share and continued to contribute to stable cash flow. With the recovery of gallium price, it will continue to increase its contribution to revenue. In 2021, gallium adsorption materials achieved revenue of 105 million yuan, a year-on-year increase of 32%; In terms of wet extraction of other metals, the total order amount of adsorption materials such as uranium extraction, gold extraction, vanadium extraction and scandium extraction exceeded 110 million yuan, realizing multi-dimensional promotion.
The production capacity in the field of life sciences has been continuously put into operation, and some products have made market breakthroughs
In 2021, the company achieved a revenue of 201million yuan for related adsorption materials in the field of life sciences, with a year-on-year growth rate of 41%, including more than 40million yuan for chromatography medium soft glue, nearly 20million yuan for microcarriers and nearly 60million yuan for solid-phase synthetic carriers. At present, the company has rich product systems in the field of life sciences, including chromatography medium / chromatography filler, polypeptide solid-phase synthesis carrier, nucleic acid solid-phase synthesis carrier, cell culture microcarrier, natural product extraction resin, immobilized enzyme carrier and other varieties. It has more than 80 product models, including high load and high alkali resistance protein A affinity filler, virus purification filler (vaccine) Many key products such as mRNA purification affinity filler seplifeoligodt20 have been verified by customers and achieved a breakthrough.
At the same time, the company has built a soft rubber production line with an annual output of 20000l / year and a solid carrier production workshop, with an operating rate of 24.94% in 2021 and a continuous release of production capacity; In 2022, the company will continue to build 50000l / year soft rubber production line and genetic engineering laboratory, and continue to provide resource support for the development of life science business.
Electronic ultrapure water resin has been replaced by domestic resin, and the high-end drinking water resin has broken through the volume
In 2021, the company achieved a revenue of 288 million yuan for adsorption materials in the field of water treatment and ultra purification, with a year-on-year increase of 69%. Relying on the jet homogenization technology, the company has achieved a breakthrough in the field of electronic and nuclear adsorption and separation materials, and gradually began to provide stable supplies to downstream customers such as BOE and Huaxing optoelectronics, with a sales revenue of tens of millions. The testing and technical negotiation with Chinese chip manufacturers are also in progress. At the same time, the company has gradually completed the international top certification in the field of high-end drinking water resin to achieve stable supply. In 2021, the company sold more than 2000 cubic meters of high-end drinking water resin, with a year-on-year increase of about 200%. In view of the rigid demand and huge market space in this market, it will provide potential market space for the company’s business growth in the future.
Guided by industrialization, adhere to R & D and innovation
The company has a deep understanding of the industry development of adsorption and separation technology outside China, has continued technological innovation for many years and carried out forward-looking layout. In 2021, the company’s R & D expenses reached 76.83 million yuan, a year-on-year increase of 40.34%. By the end of the reporting period, the company had obtained 49 Chinese authorized patents, 5 pct authorized patents and 40 patents in the application stage. At the same time, the company regards industrialization as the direction and ultimate goal of R & D, and maintains close cooperation with downstream users, and develops advanced and practical products and application processes according to the actual conditions of customers, thus gaining the first opportunity in market competition.
It is estimated that the net profit attributable to the parent company in 2022, 2023 and 2024 will be 531, 754 and 997 million yuan respectively, and the EPS will be 242, 343 and 4.54 yuan / share, corresponding to 26, 18 and 14 times of PE, maintaining the “buy” rating.
Risk tips: implementation of policies, construction progress of new production capacity is not up to expectations, contribution performance of new production capacity is not up to expectations, price fluctuation of raw materials, change of environmental protection policies and sharp economic downturn.
