\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 99 Weihai Guangwei Composites Co.Ltd(300699) )
Core view
Revenue and profit fell year-on-year, and the performance was slightly higher than the previous forecast. In 2022q1, the company achieved an operating revenue of 591 million yuan, a year-on-year increase of – 5.46%, a month on month increase of – 8.33%, and a net profit attributable to the parent company of 208 million yuan, a year-on-year increase of – 5.02%, a month on month increase of + 48.05%. After deducting the net profit not attributable to the parent company of 197 million yuan, a year-on-year increase of – 5.35%, a month on month increase of + 47.61%, EPS was 0.4 yuan / share, slightly higher than the previous performance forecast. The year-on-year decline in revenue and profit was mainly affected by the price reduction of finalized carbon fiber products, shutdown caused by the epidemic.
The price reduction of finalized products is superimposed on the phased drag of the epidemic, and the profit is expected to recover gradually. In terms of products, the three businesses of carbon fiber (including fabric) / wind power carbon beam / prepreg achieved revenue of RMB 384 million / 141 million / 48 million respectively, with a year-on-year increase of + 6.78% / + 2.05% / – 55.77%. Among them: 1) although the carbon fiber business is further affected by the price reduction of finalized carbon fiber, it benefits from the contribution of new products and basically makes up for the adverse impact of price reduction. After two consecutive price reductions, the price of finalized products will stabilize in the future, and the profitability is expected to recover; 2) The substantial decline of prepreg business was mainly due to the end of phased orders of wind power prepreg with great contribution in the same period of last year, the temporary limited contribution of new business in this period, and the loss of some orders due to the impact of the epidemic and logistics interruption. In addition, the revenue of composite materials and precision machinery business was 9.97/6.79 million yuan respectively, with a year-on-year increase of – 33.38% / + 101.54%. Composite materials were mainly affected by shutdown and delayed delivery.
Stock incentives bind core talents, help long-term development and highlight development confidence. The company announced the restricted stock incentive plan for 2022. It plans to grant 6.25 million shares (accounting for 1.21% of the total share capital on the draft announcement date) to the core backbone personnel (138 people in total) of the company (including holding subsidiaries) at the price of 26.67 yuan / share, and 5 million shares (accounting for 0.96% of the total share capital on the draft announcement date and 80% of the total planned grants) for the first time, including the first grant and the grant before the disclosure of the third quarterly report of 2022, After 12 months from the date of grant, it will be attributed in four phases (25% of all), and the corresponding performance assessment target is that the net profit in 22-25 years will increase by 15% / 40% / 70% / 100% compared with that in 21 years; After the third quarterly report of 2022, it will be granted in three phases (the proportion is 30% / 30% / 40% respectively). The corresponding performance evaluation target is that the net profit in 23-25 years will increase by 40% / 70% / 100% compared with that in 21 years. The stock incentive covers a wide range, which will further mobilize the enthusiasm of employees, attract and retain excellent talents, ensure the stability of employees, help the long-term development of the company, and highlight the company’s confidence in future development.
Risk warning: the epidemic situation repeatedly affects production and delivery; The price rise of raw materials exceeded expectations; The project is put into operation less than expected investment suggestions: the capacity construction is expected to be promoted in an orderly manner, and the multi-level product strategy is expected to be launched in the second place. As one of the few leading enterprises in China to realize the layout of the whole carbon fiber industry chain, the “buy” company has sufficient product technology reserves and orderly progress in R & D and verification. The multi-level product strategies such as T700 / T800 / MJ series are expected to be launched in the second place to continuously improve its core competitiveness. At the same time, the capacity construction is expected to be implemented steadily, Continuously consolidate the foundation for future growth. It is estimated that the EPS of 22-24 years will be 1.81/2.19/2.59 yuan / share respectively, and the corresponding PE will be 23.4/19.4/16.4x, maintaining the “buy” rating.
