\u3000\u3 China Vanke Co.Ltd(000002) 669 Kangda New Materials(Group) Co.Ltd(002669) )
Event:
The company released its annual report for 2021, achieving a revenue of 2.272 billion yuan, a year-on-year increase of 17.57%; The net profit attributable to the parent company was 219959 million yuan, a year-on-year decrease of 89.77%. The net cash flow from operating activities was 208 million yuan, a year-on-year increase of 269.32%.
Key points of the report:
The price of raw materials has risen sharply, and the profit space of the company is under pressure
Affected by the sharp rise in raw material prices, the company’s overall gross profit margin was 15.96%, a year-on-year decrease of 15.42pct, and the net profit margin was 0.94%, a year-on-year decrease of 10.16pct. Benefiting from the month on month growth of wind power installed capacity in 2021q4, the company achieved a revenue of 850 million yuan in 2021q4, with a month on month growth of 48.22%, and the net profit attributable to the parent company was 197515 million yuan, with a month on month growth of 177.44%. In 2021, the company continued to increase R & D efforts, with R & D investment of 98 million yuan, 27 newly authorized patents, 3 national standards and 1 industry standard.
Maintain the leading edge of adhesives and focus on offshore wind power
In 2021, the company’s adhesive sector achieved a revenue of 1.593 billion yuan. In the field of wind power blades, the company’s wind power adhesive products continue to maintain a leading market share. In 2021, the company entered the sgre (Siemens COMESA) supply system. The blade enterprises designated by the company in China have fully switched the company’s products to achieve mass supply. In the later stage, the company will gradually expand its business cooperation with COMESA in the field of wind power. In terms of overseas business, the company has gradually completed the blade testing of sgre, LM, Ge, nordex and other foreign customers, and set up a special project team to connect technology and process, so as to accelerate the expansion of overseas market. Wind power epoxy matrix resin has been stably supplied to Dongfang wind power, Yuanjing wind energy, Titan Wind Energy (Suzhou) Co.Ltd(002531) and other long-term partners. The testing work of Sinoma Science & Technology Co.Ltd(002080) , Sany Heavy energy, Zhuzhou Times New Material Technology Co.Ltd(600458) and other customers is progressing steadily. In the future, the company will strengthen the market expansion of epoxy matrix resin products and provide customers with systematic wind power blade material services. At the same time, the company actively promotes the construction of Tangshan Fengnan Kangda and Fujian Kangda Xinyu adhesive new material project, which is expected to be completed within 2022, which is expected to increase the company’s adhesive production capacity.
Accelerate the application of “localization” of equipment and set a new high in military business
Benefiting from the increase of national investment in the military industry, the variety and quantity of products developed by the company’s military science and technology sector have entered the stage of batch delivery. In 2021, the company’s military science and technology sector with Bikong technology and Liyuan Xingda as the core realized an operating revenue of 283 million yuan, with a year-on-year increase of 31.53%, of which the power module business revenue was 118 million yuan, with a year-on-year increase of 18.37%, and the filter and filter component business revenue was 134 million yuan, with a year-on-year increase of 58.34%. In 2021, Bikong technology expanded the type spectrum of EMC and its extended products, and continued to effectively integrate upstream and downstream resources. At present, the products have covered device level, component level, system level power supply, intelligent filter products, etc., and some supporting products have entered the stage of mass production. Liyuan Xingda, based on the product development of modular power supply and driving power supply, continued to enrich the technology and product type spectrum, and was selected into the list of the seventh batch of “specialized and special new” small and medium-sized enterprises in Beijing in 2021.
Investment advice and profit forecast
In the future, the company will continue to maintain the leading advantage of adhesives and strengthen customer development. The military industry sector will continue to benefit from the high performance certainty brought by the increased demand for weapons and equipment. At the same time, the company will actively improve its overall competitive strength through horizontal and vertical industrial chain layout. We estimate that the operating revenue of the company from 2022 to 2024 will be RMB 3.185/43.73/5.507 billion respectively. The price of raw materials is expected to fall in 2022, driving the recovery of the company’s profitability. We expect the net profit attributable to the parent company to be 386 / 563 / 748 million yuan from 2022 to 2024 respectively. The corresponding EPS is 1.53/2.23/2.96 respectively, and the corresponding PE of the current stock price is 6.5/4.4/3.3, maintaining the “buy” rating.
Risk tips
Price fluctuation risk of raw materials; Risk that the installed capacity of wind power is less than expected; Risk of intensified market competition
