\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 61 Yangling Metron New Material Co.Ltd(300861) )
The company released the annual report of 2021, and the profit growth of 70% was in line with the expectation; The company's diamond line sales have increased rapidly, the production capacity has expanded rapidly, and actively expand high-quality customers. The market share is expected to further increase; Maintain the overweight rating.
Key points supporting rating
In 2021, the profit increased by 70% year-on-year: the company released the annual report of 2021, which achieved an annual revenue of 1.848 billion yuan, a year-on-year increase of 53.29%, and a net profit attributable to shareholders of listed companies of 763 million yuan, a year-on-year increase of 69.72%; Deduct 683 million yuan of non-profit, a year-on-year increase of 66.39%. Among them, 2021q4 achieved a profit of 212 million yuan, an increase of 69.69% year-on-year and 15.48% month on month; Deduct 192 million yuan of non-profit, an increase of 109.12% year-on-year and 9.59% month on month. The company's performance meets the forecast range.
Diamond wire sales increased rapidly and profitability remained stable: benefiting from the expansion of downstream silicon wafer manufacturers, the demand for diamond wire increased significantly. In 2021, the company's diamond wire sales increased rapidly, with an annual sales volume of 454082 million kilometers, a year-on-year increase of 82.80%. The revenue of diamond line business was 1.824 billion yuan, a year-on-year increase of 54.12%. The average settlement price of diamond line was 40.17 yuan / km, a year-on-year decrease of 15.68%. Taking advantage of its industrial chain advantages and technological innovation ability, the company timely realized new product R & D and mass production and sales, and its profitability remained stable. The gross profit margin of diamond line decreased slightly by 1.46 percentage points to 57.26%.
Technological upgrading promotes the rapid expansion of high-quality production capacity: by the end of 2021, the company's annual production capacity of diamond line has reached 70 million kilometers. Recently, the company has begun to implement the "single machine 12 lines" technological upgrading. It is expected that the total production capacity is expected to increase to 85 million kilometers by June 2022. The existing diamond electroplating production line is expected to be completed by the end of this year, and the existing diamond electroplating production line is expected to reach 1250000 kilometers.
Actively expand high-quality customers: in 2021, the company continued to maintain good cooperative relations with Longi Green Energy Technology Co.Ltd(601012) , Jingke energy, Ja Solar Technology Co.Ltd(002459) , poly GCL and other silicon chip customers, and actively explored new silicon chip customers such as Gaojing Cecep Solar Energy Co.Ltd(000591) , Beijing Jingyuntong Technology Co.Ltd(601908) , Hongyuan new materials (Baotou). Up to now, the company's customer base has basically covered the main enterprises of silicon wafer production in China.
Valuation
Under the current share capital, combined with the company's annual report, the demand of downstream photovoltaic industry and other factors, we adjusted the predicted earnings per share of the company from 2022 to 2024 to 2.73/3.45/4.25 yuan (the original prediction of 20222023 was 2.80/3.62 yuan), corresponding to 22.3/17.6/14.3 times of P / E; Maintain the overweight rating.
Main risks of rating
Price competition exceeds expectations; Cost advantage is reduced beyond expectation; The cost of raw materials rose more than expected; Technical iteration risk; Photovoltaic policy risk; The impact of the epidemic exceeded expectations.
