\u3000\u30 Zhongyan Technology Co.Ltd(003001) 96 Jiangsu Changhai Composite Materials Co.Ltd(300196) )
The company released the first quarterly report of 2022 on April 26, with a revenue of 750 million yuan, a year-on-year increase of 36.1% and a month on month increase of 12.0%; The net profit attributable to the parent company was 230 million yuan, a year-on-year increase of 115.0% and a month on month increase of 50.0%.
Key points supporting rating
In the first quarter, the revenue and profit increased significantly year-on-year and month on month: the company’s Q1 revenue was 750 million yuan, a year-on-year increase of 36.1% and a month on month increase of 12.0%; The net profit attributable to the parent company was 230 million yuan, an increase of 115.0% year-on-year and 50.0% month on month; Net profit deducted from non parent company was 180 million yuan, with a year-on-year increase of 79.9% and a month on month increase of 44.4%. 22q1 non recurring profit mainly comes from the sale income of rhodium powder, which is about 45 million yuan.
The price of glass fiber remained high and the profitability of the company continued to improve: during the reporting period, the average price of 2400tex winding direct yarn was 6000 yuan / ton, which was stable month on month, with a year-on-year increase of 3.4%. The company’s expenses were well controlled. The gross profit margin and net profit margin of 22q1 sales were 38.8% and 30.2% respectively, with a year-on-year increase of 5.8/11.1pct and a month-on-month increase of 4.7/7.8pct.
The company is a leader in glass fiber products, with new production capacity put in and continuous improvement of the layout of the whole industrial chain: in terms of glass fiber yarn, the company announced in April that it plans to upgrade 30000 tons of glass fiber production line to 80000 tons of high-end high-performance glass fiber and special fabric production line; In terms of glass fiber products, the company plans to build five new felt lines, and has completed the production of two production lines, further stabilizing the leading position in the subdivided field; In addition, the company’s annual output of 100000 tons of unsaturated polyester resin technical transformation and expansion project has been completed. The company’s industrial chain layout of “glass fiber yarn glass fiber products resin composites” has been further improved.
There is strong demand for glass fiber outside China, but there is more new supply during the year: the export of glass fiber continues to boom, while there is strong market demand for wind power generation, new energy vehicles and green energy-saving building materials in China; On the supply side, the production capacity of new ignition will reach the production capacity in the second half of 21. According to Zhuo Chuang information, about 400000 tons of production capacity will be put into operation in the first half of 22, and about Shanghai Pudong Development Bank Co.Ltd(600000) tons of production capacity will be stored in the ignition plan in the second half of 22. The continuous increase of supply will bring certain pressure to the price.
Valuation
Considering that the company’s performance meets our expectations, we maintain the original profit forecast. It is estimated that the company’s revenue from 2022 to 2024 will be RMB 3.22 billion, RMB 4.05 billion and RMB 4.43 billion; The net profit attributable to the parent is 690 million yuan, 810 million yuan and 890 million yuan respectively; EPS is 1.70, 1.99 and 2.19 yuan respectively. Maintain the company’s overweight rating.
Main risks of rating
The demand for glass fiber was lower than expected, and the price of raw materials of chemical products continued to rise.
