\u3000\u3 Shengda Resources Co.Ltd(000603) 212 Cybrid Technologies Inc(603212) )
Key investment points
The leading position of photovoltaic backplane is stable, and the product diversification responds to the rising pressure of raw material cost
In 2021, the company’s backplane business achieved a revenue of 1.425 billion yuan, a year-on-year increase of 9.83%, a gross profit margin of 12.41%, a year-on-year decrease of 4.71 PCT, and the company’s backplane product shipment was 131 million square meters, a year-on-year decrease of 0.86%. The price of PVDF film, the raw material of KPF backplane, the main product in the company’s backplane shipping structure, increased significantly by 250%, resulting in a cost increase of more than 40%. The company successfully developed PPF and FPF backplanes on the original KPF equipment, which got rid of the influence of PVDF price fluctuation. The certification cycle is about 6-12 months, laying a foundation for the restorative growth of backplane shipments and the improvement of gross profit from 2022q1.
The shipment of packaging adhesive film increased rapidly, and the layout of the whole product series was expanded
In 2021, the company’s packaging film business achieved a revenue of 1.138 billion yuan, a year-on-year increase of 56.94%, a gross profit margin of 12.95%, and a packaging film shipment of 95.101 million square meters, a year-on-year increase of 41.42%. The company’s adhesive film product line has expanded from Poe adhesive film of a single category in 2020 to EPE adhesive film, transparent EVA adhesive film, transparent high cut-off EVA adhesive film, white EVA adhesive film, second-generation white EVA adhesive film, special adhesive film for hjt battery, etc., becoming an emerging adhesive film supplier with a full product series. At present, the company’s packaging film products have successfully entered the front-line component manufacturers such as Trina Solar, Jingao, Jingke, Atlas and Chint.
Strengthen the business of non photovoltaic materials and focus on expanding the subdivided field of power cells of new energy vehicles
In 2021, the company’s power lithium battery materials business achieved a revenue of 250 million yuan, with a year-on-year increase of 297.26%, a gross profit margin of 32.80%, and a year-on-year decrease of 6.40 PCT. In 2021, the company’s new energy power lithium battery material product line expanded, and the three products achieved the first market share in China, becoming a new and rapidly growing profit point of the company. Several main products are imported into leading enterprises such as Contemporary Amperex Technology Co.Limited(300750) and Byd Company Limited(002594) and the two materials indirectly enter Tesla‘s supply chain. In terms of semiconductor materials, UV reducing film and IGBT heat dissipation materials achieve mass production. The gross profit margin of electronic materials is nearly 250000 yuan.
Profit forecast and valuation
The company is the leader of photovoltaic backplane and adhesive film, and power lithium battery materials are expected to grow at a high speed. We estimate that the net profit attributable to the parent company from 2022 to 2024 will be RMB 338 million, RMB 448 million and RMB 553 million respectively, corresponding to EPS of RMB 0.84, RMB 1.11 and RMB 1.37/share and PE of 22, 17 and 14 times.
Risk tips
The PV installed capacity is less than expected; Fluctuations in raw material costs; Sales of new energy vehicles were lower than expected.
