\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 61 Yangling Metron New Material Co.Ltd(300861) )
Events
Yangling Metron New Material Co.Ltd(300861) released the annual report of 2021. In 2021, the company realized an operating revenue of 1.848 billion yuan, an increase of 53.29% at the same time; The net profit attributable to the parent company was 763 million yuan, an increase of 69.72% at the same time; Deduct the net profit not attributable to the parent company of 683 million yuan, an increase of 66.39% at the same time. The corresponding revenue of 2021q4 was 576 million yuan, an increase of 72.58% at the same time; The net profit attributable to the parent company was 212 million yuan, an increase of 70.0% at the same time.
Key investment points
The performance was in line with expectations and the sales volume increased rapidly
The company sold 45.41 million kilometers in 2021, an increase of 83% at the same time; The average sales price was 40.2 yuan / km, down 16% at the same time, the decline was further narrowed, and the industry price gradually stabilized. The company’s net profit per kilometer in 2021 was 16.8 yuan / kilometer, a decrease of 7% at the same time, which was less than the price decline, and the corresponding net interest rate increased by 3.76 PCTs to 41.31%. From the cost side, the company’s direct labor, depreciation, energy, power and other manufacturing expenses have decreased, while the cost of raw materials has increased slightly. We believe that it is mainly due to the rapid expansion of production and the reduction of bus self supply rate in 2021. In terms of customer development, the company’s largest customers accounted for 62% in 2021, a certain decrease from 70% in 2020, reflecting the progress made by the company in customer development.
From 2021q4 alone, the company sold 14.55 million kilometers in 2021q4, with a net profit of 14.6 yuan per kilometer and a gross profit margin of 51.52%, down 5.22pcts month on month, mainly due to the low operating rate of silicon wafers in the fourth quarter of last year and the rapid rise of raw material prices. It is expected that in 2022, with the gradual implementation of the company’s yellow wire and bus end projects, the company’s self supply rate will increase and the gross profit margin is expected to rise.
Photovoltaic demand exceeded expectations and is optimistic that the diamond wire industry will continue to increase
Since 2022, affected by the European energy crisis and the rush to install in India, the downstream demand of photovoltaic has exceeded expectations, and most enterprises in Vajra line industry have maintained a high operating rate since the beginning of the year. Combined with the additional demand brought by the requirements of downstream silicon wafer enterprises for thin wire, the demand of diamond wire industry is expected to exceed expectations this year.
The space for cost reduction is still vast
The R & D capability of the company has always been ahead of the whole industry. From the use of multi wire machine to domestic electrosectord metal coated diamond to the current R & D of finer wire diameter, Meichang has always been at the forefront of the industry and led the technological reform of the industry. In the future, the company still has cost reduction measures worth looking forward to, such as increasing the self supply ratio of bus and yellow wire, diamond differential crushing, etc., and the cost reduction space is still broad.
Profit forecast
We predict that the company’s revenue from 2022 to 2024 will be 2.64 billion yuan, 3.41 billion yuan and 4.27 billion yuan respectively, and its EPS will be 2.61, 3.43 and 4.28 yuan respectively. The corresponding PE of the current stock price is 23, 18 and 14 times respectively, giving the “recommended” investment rating.
Risk tips
The photovoltaic installation did not meet the expectations, the expansion of diamond line did not meet the expectations, the price of diamond line fell, and the price of bulk commodities rose.
