\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 61 Yangling Metron New Material Co.Ltd(300861) )
In 2021, the revenue increased by 53.29% year-on-year, and the net profit attributable to the parent company increased by 69.72% year-on-year. The company achieved a revenue of 1.848 billion yuan in 2021, with a year-on-year increase of 53.29%; The net profit of downstream silicon wafer manufacturers increased by 6.97 billion yuan, mainly due to the positive growth of 7.27 billion yuan of new silicon wafer production capacity. In 2021, the gross profit margin / net profit margin was 55.16% / 41.31%, with a year-on-year change of -1.38/3.75 PCT. In 2021, the company’s sales / management / R & D / financial expense ratio was 3.45% / 2.48% / 4.69% / – 0.11%, with a year-on-year change of + 1.31 / – 1.42 / – 2.71 / – 0.24 PCT, and the company’s expenses were well controlled during the period. The net operating cash flow of the company was 343 million yuan, a year-on-year increase of 34.00%, and the company’s payment collection was in good condition.
The profitability is stable and the capacity advantage is obvious. In 2021, the company sold 45.41 million kilometers of diamond line, with a year-on-year increase of 82.80%. Due to the excessive capacity expansion of diamond line manufacturers in the early stage, the market price of diamond line decreased steadily in 2021. The average sales price of the company was 40.17 yuan / km, a year-on-year decrease of 15.68%. On the one hand, the company extends to upstream raw materials to reduce the cost of raw materials. On the other hand, it improves the overall product price by realizing new product R & D and mass production. Therefore, the company maintains a high profitability as a whole. In terms of production capacity, the company’s diamond line has a production capacity of 70 million km / year, which is in the leading position in the industry and has obvious advantages in scale. At the same time, the company reserves 10% safe production capacity to quickly respond to customers. At present, the company is carrying out the transformation of the existing production line of “single machine 12 lines”, which is expected to be completed by the end of June 2022. After completion, the production capacity will increase by 33% and the annual production capacity will reach 85 million km. The company expects the annual production capacity of diamond line to be 125 million km by the end of 2022.
The photovoltaic climate continues to improve, and the company is expected to benefit in depth. The company is a leading enterprise in diamond line. Its products are mainly used for photovoltaic silicon wafer cutting, and can also be used for sapphire, precision ceramics, magnetic materials and other hard and brittle materials. Its customers include Longji, Jingke, Jingao, poly GCL and so on. Under the background of thin and large photovoltaic chips, the company continues to innovate. At present, the line diameter of diamond line products covers 42-36 μ m. It is in a leading position in the industry. At the same time, the company continues to extend to the upstream industrial chain, has realized the self supply of some buses, greatly reduced the production cost of diamond line, made a layout in terms of yellow wire and diamond powder, and strengthened the management of important raw materials. In the future, the new installed capacity of global photovoltaic is expected to maintain a growth trend. As a consumable in silicon wafer cutting, the demand for diamond wire will maintain rapid growth. As an industry leader, the company will benefit deeply.
Risk warning: the newly installed capacity of photovoltaic is less than expected; Industry competition intensifies.
Investment suggestion: the company is the leader of diamond line, and its product yield, cost and production capacity are at the leading level in the industry. Under the background of the continuous growth of the new installed capacity of global photovoltaic, the company is expected to benefit deeply. It is estimated that the parent company will buy pe8.2 billion yuan for the first time, with a net profit of 2.4-2.5 times that of 202921, which is expected to be paid by the parent company.
