\u3000\u3 China Vanke Co.Ltd(000002) 080 Sinoma Science & Technology Co.Ltd(002080) )
Core view
The performance met expectations and the glass fiber boom continued. In 2022q1, the company achieved a revenue of 4.662 billion yuan. Due to the impact of the merger and acquisition of Sinoma Jinjing, the retroactively adjusted year-on-year + 15.89%, month on month – 17.54%, the net profit attributable to the parent company was 734 million yuan, the adjusted year-on-year + 24.51%, month on month + 1.14%, deducting the net profit not attributable to the parent company of 602 million yuan, the adjusted year-on-year + 7.45%, month on month + 140.24%, and EPS was 0.44 yuan / share. The performance was basically in line with expectations, mainly benefiting from the continuation of the glass fiber boom, The price of Q1 roving remained high (according to Zhuo Chuang information, the average price of 2400tex winding direct yarn, the mainstream product of Q1, was 6179 yuan, with a year-on-year increase of + 6.42% and a month-on-month increase of – 0.62%). At the same time, the investment income further thickened the profit, and the net investment income was 122 million yuan, with a year-on-year increase of + 3050.4%.
Profitability improved month on month and cash outflow increased significantly. 2022q1 company’s comprehensive gross profit margin was 29.81%, year-on-year -1.73pp, month on month + 4.89pp; The expense rate during the period was 12.48%, with a year-on-year rate of -1.47pp, of which the sales / management / Finance / R & D expense rates were 1.10% / 4.55% / 2.33% / 4.50% respectively, with a year-on-year rate of -0.18 / – 0.05 / + 0.02 / – 1.25pp. Benefiting from the good control of expense rate and the thickening of superimposed investment income, the net interest rate was 16.68%, with a year-on-year increase of + 1.41pp and a month on month increase of + 3.58pp. The net cash flow from operating activities in 2022q1 was -1.438 billion yuan, with a year-on-year increase of -1.320 billion yuan, mainly due to the centralized due payment of raw materials purchased by bills in 2021, resulting in a large increase in cash paid for purchasing goods and receiving labor services compared with the same period last year. At the same time, due to the accounting period, the cash collection lags behind the income, resulting in a small year-on-year change in cash collection.
The production capacity continues to increase and the product structure continues to be optimized. The company’s annual production capacity of glass fiber has reached 1.2 million tons. It was announced on April 22 that it will invest in the construction of a 60000 ton high modulus and high strength glass fiber production line in Zoucheng, Shandong Province. The production capacity will be further increased, and the product structure is expected to be further optimized. At the same time, in the wind power blade sector, the company has started the construction of new bases in the coastal and northwest regions (Yangjiang, Guangdong and Yulin, Shaanxi), and is expected to add 500 sets of wind power blade capacity after it is put into operation; In the lithium film sector, the company’s base film capacity has exceeded 1 billion square meters, and the new capacity of the projects under construction is 2.64 billion square meters, of which 320 million square meters of Inner Mongolia phase II is expected to be completed and put into operation within the year.
Risk tip: the demand for glass fiber is less than expected; The installed capacity of wind power is less than expected; Lithium film business expansion was less than expected.
Investment suggestion: accelerate the layout of the three major businesses, have sufficient growth momentum, and maintain the “buy” rating
Focusing on the three main businesses of glass fiber and products, wind power blades and lithium battery diaphragm, the company accelerated the layout of core industries and continued to release high-quality production capacity. At the same time, focusing on new energy and new materials, the company actively expanded projects such as high silica glass fiber and glass fiber filter paper, with constantly widening boundaries and sufficient growth momentum. It is estimated that the EPS of 22-24 years will be 2.38/2.74/3.09 yuan / share respectively, and the corresponding PE will be 8.7/7.6/6.7x, maintaining the “buy” rating.
