\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 84 Beijing Sanlian Hope Shin-Gosentechnical Service Co.Ltd(300384) )
Core view
Record performance: Beijing Sanlian Hope Shin-Gosentechnical Service Co.Ltd(300384) released the annual report of 21 years and the quarterly report of 22 years. The company achieved a revenue of 840 million yuan in 21 years, a year-on-year increase of - 4.0%, and a net profit attributable to the parent company of 191 million yuan, a year-on-year increase of + 13.3%. In 22q1, the company achieved a revenue of 214 million yuan, a year-on-year increase of + 23.3%, and a net profit attributable to the parent company of 59.24 million yuan, a year-on-year increase of + 15.3%. In terms of sectors, the new materials and synthetic materials process solutions sector achieved a revenue of 479 million yuan, a year-on-year increase of + 17.5%, and a gross profit margin of 38.1%, a year-on-year decrease of 6.3 PCT; The gross profit rate of biodegradable materials and solutions increased by -1.901 billion yuan year-on-year, with a year-on-year increase of -2.57 billion PCT. Polymetrix, the main holding subsidiary, achieved a revenue of 341 million yuan and a net profit of 45.86 million yuan, with a year-on-year net profit of + 81.9%. At the end of the year, the contract liabilities were 426 million yuan, a year-on-year increase of + 48.8%, reflecting the increase in advance receipts due to the increase in the execution of contracts by the company.
Rapid growth of orders: as of December 31, 2021, the contract amount signed by the company that has not yet been completed is RMB 3.924 billion (including tax), of which the amount of recognized revenue is RMB 1.962 billion (excluding tax). The company announced orders totaling 1.31 billion yuan in 21 years, a record high. As of 22q1, the company announced orders totalling 1.08 billion yuan, with strong orders. Polymetrix, the main holding subsidiary, increased orders by 91.44 million Swiss francs in 21 years, reaching the highest level in recent ten years. By the end of 21 years, signed orders had yet to be confirmed, and the revenue was 77.94 million Swiss francs.
The two businesses are in a period of rapid development: the PA6 / PA66 and recycled polyester (RPET) industries mainly served by the company are in a period of rapid development. The capacity expansion of PA6 benefits from the breakthrough of key technologies in the localization of upstream caprolactam. Similarly, for PA66, China's adiponitrile production technology is expected to make a breakthrough in 2022 and break the foreign technology monopoly. It is expected that PA66 industry will usher in rapid growth during the 14th Five Year Plan period. In terms of RPET, McKinsey predicts that by 2030, up to one-third of the plastic demand will be met by previously used plastic production, rather than by "raw" oil and gas raw materials. In recent years, food grade RPET has been widely accepted in the EU, the United States and Japan, resulting in a significant increase in the demand for food grade RPET.
Profit forecast and investment suggestions
Based on the company's order signing, we adjusted the company's EPS from 2022 to 2024 to be 0.79, 1.00 and 1.33 yuan respectively (the original forecast was 0.76, 0.85 and - yuan), the 22-year average PE of the comparable company was 21 times, and the corresponding target price was 16.59 yuan (the original target price was 30.71 yuan), maintaining the buy rating.
Risk tips
Order implementation is not as expected; Order growth is less than expected; The development of new fields is less than expected; Risk of force majeure such as epidemic situation affecting order execution; The progress or strength of the policy is less than expected
