\u3000\u3 Guocheng Mining Co.Ltd(000688) 299 Ningbo Solartron Technology Co.Ltd(688299) )
Events
① the company achieved an operating revenue of 1.297 billion yuan in 2021, an increase of 24.08% year-on-year; The net profit attributable to the parent company was 187 million yuan, an increase of 5.54% year-on-year; The net profit attributable to the parent company after deduction was 174 million yuan, with a year-on-year increase of 10.82%.
② in the first quarter of 2022, the company realized an operating revenue of 285 million yuan, an increase of 2.19% year-on-year; The net profit attributable to the parent company was 35.35 million yuan, a year-on-year decrease of 18.09%; The net profit attributable to the parent company after deduction was 27.32 million yuan, a year-on-year decrease of 33.90%.
The annual revenue growth slowed down, and the optical base film business dragged down the profit level
The growth rate of the company’s annual revenue gradually slowed down, especially the lower year-on-year growth rate of net profit attributable to the parent company after deduction of non profits, mainly due to:
① the optical base film business is greatly affected by the continuous rise in the price of raw material polyester chips and the shutdown of power rationing maintenance, and the gross profit margin has fallen sharply. Due to the rising price of upstream raw material polyester chip (upstream is oil), and the large capacity and dispersion of new base film in China, the price transmission capacity is weak. At the same time, affected by the power limitation of regional transformer transformation, the company’s base membrane production line was shut down from November to December, which seriously dragged down the revenue and gross profit.
② share based payment, exchange loss and other factors erode the company’s net profit more. The company paid 44.4 million yuan in 21 years. After excluding the impact of share payment expenses, the net profit was 218 million yuan, an increase of 23.20% over the same period of last year. The appreciation of the US dollar slowed down in 21 years, but the proportion of the company’s export sales increased from 36% to 44%, and the annual exchange loss was about 6 million yuan. It is estimated that the share based payment fee of the company in the whole year of 22 years will be about 20 million yuan. At the same time, if the US dollar enters a strong cycle, it is expected to realize exchange gains.
In the first quarter, the profit side continued to be under pressure and was optimistic about the long-term development of the company
In the first quarter of 2002, affected by the geographical conflict, the oil price soared, and the price of upstream raw materials of the company further increased month on month; As the impact of the power failure of the base film production line was extended to the beginning of the first quarter, and the downstream demand was weak, the base film revenue and gross profit margin both fell year-on-year. At the same time, affected by the epidemic, the logistics of overseas and South China customers is limited, and some revenue recognition is delayed. We believe that with the slight decline of oil prices and the company’s diaphragm and CPI film are expected to be put into operation within this year, which will provide impetus for the company’s long-term development.
Investment advice
We expect the net profit attributable to the parent company from 2022 to 2024 to be RMB 255, 335 and 423 million, with corresponding P / E ratios of 17, 13 and 10 times, maintaining the “buy” rating.
Risk tips
The price of upstream raw materials continued to rise, the demand for base membrane was lower than expected, and the production of new businesses such as diaphragm was lower than expected.
