\u3000\u300 Ping An Bank Co.Ltd(000001) 2 Csg Holding Co.Ltd(000012) )
Investment summary
Event overview
On April 25, the company released its annual report for 2021. In 2021, the company achieved an operating revenue of 13.629 billion yuan, a year-on-year increase of 27.72%, and a net profit attributable to the parent company of 1.529 billion yuan, a year-on-year increase of 96.24%.
The provision for impairment will affect the net profit. During the reporting period, the company made a total provision for asset impairment of about 1.136 billion yuan. After asset impairment, the company’s net profit attributable to the parent company in 2021 was 1.529 billion yuan, a year-on-year increase of 96.24%. Among them, the provision for asset impairment of Cecep Solar Energy Co.Ltd(000591) business assets is about 700 million yuan, and the net profit of Cecep Solar Energy Co.Ltd(000591) and other businesses after impairment is -672 million yuan.
Actively expand the production capacity of photovoltaic glass and accelerate the large-scale layout. By the end of 2021, it has two photovoltaic calendered glass raw sheet production lines in Dongguan and Wujiang, with an annual output of about 430000 tons of photovoltaic calendered glass raw sheets and a deep processing capacity of 72 million square meters / year. Four photovoltaic glass production lines with a daily melting capacity of 1200 tons are under construction in Fengyang and one photovoltaic glass production line with a daily melting capacity of 1200 tons is under construction in Xianning. It is expected to be ignited and put into operation in batches from 2022q2.
Electronic glass has successfully opened China’s high-end market, and the third generation of high aluminum products have been certified. In 2021, the company’s high aluminum second generation (kk6) lithium aluminosilicate electronic glass products were widely used in China’s high-end brand customers, marking the successful opening of China’s high-end customer market by CSG’s electronic glass business. Meanwhile, during the year, the second-generation upgraded product kk6-p of Xianning photoelectric high aluminum was successfully industrialized, and the third-generation products of high aluminum were verified.
Investment advice
The company’s electronics and photovoltaic glass have outstanding growth. With the further mass production and sales of electronic glass and the expansion of photovoltaic glass production capacity, the company’s profitability will be further improved. We predict that from 2022 to 2024, the company’s operating revenue will increase by 16.4%, 16% and 13.1% year-on-year to 158.60, 18.391 and 20.798 billion yuan respectively, the net profit attributable to the parent company will increase by 34.2%, 19.5% and 18.4% year-on-year to 2.052, 2.451 and 2.902 billion yuan respectively, and the EPS will be 0.67/0.8/0.95 yuan / share respectively. Corresponding to the stock price on April 25, the PE will be 8 / 7 / 6x respectively, maintaining the “overweight” rating.
Risk tips
Capacity expansion is less than expected; Risk of sharp decline in glass prices; The domestic replacement of electronic glass is less than expected.
