\u3000\u3 Shengda Resources Co.Ltd(000603) 212 Cybrid Technologies Inc(603212) )
Event: the company released the report for the first quarter of 2022, realizing a revenue of 1.098 billion yuan, a year-on-year increase of 81.9% and a month on month increase of 18.7%; The net profit attributable to the parent company was 89 million yuan, an increase of 76.3% year-on-year and 82.9% month on month; The net profit after deducting non recurring profit and loss was 88 million yuan, an increase of 86.6% year-on-year and 57.7% month on month.
Comments:
The profitability improved and the photovoltaic business grew rapidly. The profitability of 2022q1 company has been greatly improved, and the sales revenue of adhesive film and backplane has increased rapidly. The sales volume of adhesive film was 37 million square meters, with a year-on-year increase of 115%, and the revenue was 440 million yuan, with a year-on-year increase of 128.7%; The backplane sales volume was 43million square meters, a year-on-year increase of 147%, and the revenue was 530million yuan, a year-on-year increase of 82.2%, both of which contributed more than 88% of the company’s revenue. The sales scale of the company’s transparent backplane expands with the growth of the market share of double-sided battery modules, the adhesive film product line continues to be improved, and the photovoltaic business is expected to continue to maintain good growth.
Actively adjust the product structure of the back sector and rapidly increase the share of adhesive film. The sales price of photovoltaic products of 2022q1 company has increased. The average price of packaging adhesive film 2022q1 is 11.97 yuan / m2, with a year-on-year increase of 6.5%, and the average price of backplane is 12.20 yuan, with a year-on-year increase of 23.5%. In terms of raw material price, the average purchase price of PVDF film increased significantly, reaching 4.8 yuan / m2, the average purchase price of pet base film decreased by 15.4%, and the average purchase price of resin increased by 36.2%. In terms of photovoltaic backplane, due to the sharp increase in the price of raw material PVDF film in 2021, the company actively adjusted the backplane product structure, successfully produced PPF, double-sided coated fluorine-containing backplane FPF backplane without PVDF film and higher gross profit on the original equipment at the same time, and realized mass sales; In terms of adhesive film, the company proposed EVA + EPE packaging adhesive film scheme for double-sided power generation components, which has become an emerging industry adhesive film supplier with a full product series, and will further improve its market share in the subdivision field of packaging adhesive film in the future. In terms of photovoltaic power station maintenance materials, the company will issue the industry standard of photovoltaic module repair technology as the leading unit.
Lithium battery materials have been successfully introduced into leading enterprises, and new businesses have made breakthroughs. Benefiting from the explosive growth of the new energy vehicle industry chain since 2021, the company’s power lithium battery pack insulation products have been successfully introduced into leading enterprises such as Contemporary Amperex Technology Co.Limited(300750) , Byd Company Limited(002594) and so on. The lithium battery business is expected to be built into another growth pole of the company. At the same time, the company will further focus on the research and development of polymer materials for new energy vehicles, and increase the research and development and industrialization of new materials and products for vehicle bodies on the basis of the original cell blue film, lithium battery packccs integrated adhesive film, lithium battery flexible circuit board FPC insulating film and other products. By the end of 2021, the total value of the company’s products on sale and under research was about 2000 yuan / vehicle. In 2022, on the premise of expanding the business volume of existing products, the company focused on promoting products such as battery thermal management thermal conductive materials, thermal runaway fireproof materials, functional glue and water-cooled sector cold film.
Adhere to the competitive strategy of “differentiated or cost leader” and achieve innovative results in many fields. The company attaches importance to scientific research and upstream and downstream collaborative innovation activities, adheres to long-term product planning and soft technology training for R & D and marketing personnel, finds new needs through the innovation center, leads the direction of differentiation and establishes product standards. “Differentiation” is embodied in: 1) 3C consumer electronic materials business. The company found downstream technology iteration opportunities in the market and took the lead in inventing OLED module shock-absorbing materials and miniled display materials in China with differentiated design ability and existing platforms; 2) Set (semiconductor, electrical, transportation) material business. The company has continuously enriched its product line. In 2021, it developed and produced high shear cell blue film, cell signal acquisition system CCS hot pressing film, wear-resistant and fireproof materials for battery packs, etc.
Profit forecast and investment rating: we expect the company’s revenue from 2022 to 2024 to be RMB 4.635 billion, 5.826 billion and 6.621 billion respectively, with a year-on-year increase of 53.6%, 25.7% and 13.6%; The net profit attributable to the parent company was 340 million yuan, 473 million yuan and 545 million yuan respectively, with a year-on-year increase of 100.1%, 39.1% and 15.1%. The current share price corresponds to 24.55, 17.65 and 15.33 times of PE from 2022 to 2024, respectively, maintaining the “buy” rating.
Risk factors: industry demand is less than expected risk; Price fluctuation risk of raw materials; Risks of new technology development.
