\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 61 Yangling Metron New Material Co.Ltd(300861) )
Core conclusion
Event: the company released its annual report for 2021. During the year, the company achieved an operating revenue of 1.848 billion yuan, a year-on-year increase of 53.29%, and a net profit attributable to the parent company of 763 million yuan, a year-on-year increase of 69.72%. Among them, 21q4 company achieved an operating revenue of 576 million yuan, a year-on-year increase of + 72.58%, a month on month increase of + 29.64%, and a net profit attributable to the parent company of 212 million yuan, a year-on-year increase of + 69.69%, a month on month increase of + 15.48%.
In the past 21 years, the sales volume of the company’s diamond line increased rapidly. Benefiting from the expansion of downstream silicon wafer manufacturers, the demand for diamond lines has increased significantly. In 21 years, the sales volume of the company’s diamond lines reached 454082 million kilometers, a year-on-year increase of + 82.80%, and the product sales volume is still in the leading position in the industry.
The average price of diamond line products has decreased and the profitability has maintained a high level. Although the downstream demand of diamond line is strong, the industry competition still exists. The market price of diamond line has decreased steadily in 21 years. The average sales price of diamond line products of the company is 40.17 yuan / km, a year-on-year decrease of 15.68%. In the 21st year, the gross profit margin of the company’s diamond line products was 57.26%, with a year-on-year increase of -1.46pct. The company actively reduced costs and increased efficiency by promoting the research and development of fine line products and expanding upstream raw materials, and its profitability remained at a high level.
The company’s capacity expansion continued to advance. By the end of 2021, the annual production capacity of the company’s diamond line has reached 70 million kilometers, which is in a leading position in the industry. In the future, the company will further plan the production capacity construction according to the market situation. In addition, the company has reserved 10% of the safe production capacity, which can be put into production quickly when the market demand is strong. The customer order cycle is short, the response is rapid, the shipment is fast, and the supply reliability is guaranteed.
Investment suggestion: it is estimated that the operating income of the company in the 22-24 years will be 2358 / 3030 / 3897 million yuan, yoy + 27.6% / 28.5% / 28.6%, the net profit attributable to the parent company will be 1011 / 1260 / 1614 million yuan, yoy + 32.5% / 24.6% / 28.1% and EPS will be 2.53/3.15/4.03 yuan respectively, maintaining the “buy” rating.
Risk tip: the newly installed capacity of photovoltaic is less than expected, the price of diamond line is at risk of decline, and the expansion of new business is less than expected
