\u3000\u3 China Vanke Co.Ltd(000002) 768 Qingdao Gon Technology Co.Ltd(002768) )
Event: the company released the annual report of 2021, which achieved a revenue of 9.766 billion yuan (year-on-year + 35.99%) and a net profit attributable to the parent company of 643 million yuan (year-on-year – 12.03%). In the first quarter of 2022, the revenue was 2.732 billion yuan (year-on-year + 80.03%), and the net profit attributable to the parent company was 118 million yuan (year-on-year + 7.20%).
The business scale is gradually expanded, and the pressure on raw material cost is reduced in 2022q1, which is expected to help improve future performance: the company’s revenue is increased in 2021, the product structure continues to be plump, the customer group continues to be optimized, and the company’s scale is gradually expanded. In 2021, the revenue of modified materials and composite materials accounted for 48.77% and 17.29% respectively, and the revenue increased by 54.20% and 63.15% year-on-year respectively; The revenue of gelatin and series products increased by 132.46% year-on-year, becoming the fastest growing sector. The sales of modified materials and composites were 344000 tons and 131000 tons respectively, with a year-on-year increase of 32.19% and 54.52%. In 2021, the comprehensive gross profit margin was 14.75%, with a year-on-year decrease of 4.78 PCT, mainly due to the rise of raw material costs. According to Baichuan, the prices of ABS, PP and PS in 2021 increased by 29%, 13% and 18.6% year-on-year respectively compared with 2020. During the period, the expense rate was 5.37%, a year-on-year decrease of 0.74 PCT, and the cost control ability was improved. In 2022q1, the net profit of the company was 118 million yuan, down 16.89% month on month, and the gross profit margin was 11.71%, down 1.88 PCT month on month. According to Baichuan, the prices of raw materials ABS, PP and PS in 2022q1 decreased by 17.1%, 3.7% and 8.6% respectively compared with 2021. The cost pressure is reduced compared with 2021, which is expected to be conducive to the improvement of the company’s performance in 2022.
The new “one body and two wings” layout has blossomed in many places, and all sectors are booming: according to the announcement, in 2021, the company successfully controlled Baotou Dongbao Bio-Tech Co.Ltd(300239) , a GEM listed company in the field of great health, and strategically invested in Zhejiang Yisu, Jiangsu Guoheng and other chemical raw material sector projects to create a new “one body and two wings” strategic development pattern of great chemical industry and great health industry. In 2021, the company continued to promote business growth with strategic customers such as Hisense, TCL, BOE, Changhong, Gree, Konka and Skyworth in the field of household appliances, increased the research and development of Huawei 5g special materials, LDS materials and NMT materials, and successfully developed new customers such as maojia electronics; In the automotive field, focus on the development of new energy vehicles, storage batteries, lithium batteries and other products, and establish cooperative relations with Jinli new energy and other new customers; As important suppliers of Xiaomi supply chain, Beijing Roborock Technology Co.Ltd(688169) and other customers, the market share of consumer electronics and Internet of things has increased year by year; The company has developed a series of new charging products and greatly increased the production of the original series of charging products; Focus on the research and development of hp-rtm related processes in the application of new energy ultra-thin battery cladding. At present, strategic cooperation has been established with leading enterprises in the field of new energy power batteries; The orders of Japanese and Korean customers in the business of optical display materials, mainly LG and Sony, reached a new high, and the orders of European customers, mainly vestel, continued to grow, deepening cooperation with Huawei and becoming one of its core suppliers in the display field; Exclusively provide filter materials for the “China ice and snow” series masks of the 2022 Beijing Winter Olympic Games; The annual sales volume of gelatin exceeded 10000 tons for the first time, and the market share was further improved Baotou Dongbao Bio-Tech Co.Ltd(300239) further promote the implementation of the “collagen +” strategy and focus on the “Yuansu” brand; Yiqing biology has completed the matching work of hollow capsules for the listing application of 20 varieties of drugs or the conformity evaluation of generic drugs. According to the announcement, in the future, the company will improve the layout of the integrated industrial chain through polystyrene and polypropylene materials, continue to develop new products, expand key customers and continuously enhance market competitiveness.
Investment suggestion: it is estimated that the net profit of the company from 2022 to 2024 will be 850 million yuan, 1 billion yuan and 1.19 billion yuan respectively, corresponding to 6.4, 5.4 and 4.6 times of PE, maintaining the Buy-A rating.
Risk warning: product demand is less than expected, raw material price fluctuation, etc
