\u3000\u3 China Vanke Co.Ltd(000002) 876 Shenzhen Sunnypol Optoelectronics Co.Ltd(002876) )
On April 26, the company released the first quarterly report of 22 years. In Q1 of 22 years, the company achieved a revenue of 552 million yuan, a year-on-year decrease of 0.7%; The net profit attributable to the parent company was 68 million yuan, a year-on-year decrease of 11.6% and a month on month increase of 13.6%; Net profit after deduction of non return to parent was 0.66, a year-on-year decrease of 13.3%.
Affected by the epidemic situation and the climbing of production line, the company’s gross profit margin is under pressure in the short term. The company achieved a revenue of 552 million yuan in 22q1, a year-on-year increase of – 0.7%; The net profit attributable to the parent company was 68 million yuan, with a year-on-year increase of – 11.6% and a month on month increase of + 13.6%. Q1 profit of the company has declined to a certain extent: the epidemic in China has affected the supply of upstream raw materials to a certain extent; In addition, the Longgang production line put into operation in the second half of the year is in the period of capacity climbing, which has a phased impact on the product gross profit at present. In addition, the proportion of mobile phones with high profitability in Q1 revenue has decreased. The company expects that the proportion of mobile phone revenue in the whole year of 22 will be improved to a certain extent compared with Q1, so as to improve the profitability of the company. 22q1 operating cash flow is mainly due to the increase in the procurement of Shenzhen Sunnypol Optoelectronics Co.Ltd(002876) technical capacity release materials of the subsidiary.
The localization trend remains unchanged, and the company is expected to open medium and long-term growth space. Since the 21st century, the panel industry has experienced many years of industrial transfer. After 2017, China began to dominate the panel market. At present, China’s panel production capacity accounts for more than 60%. With the transfer of panel industry, the market demand of polarizer in China is expanding. According to OFweek’s data, the global market scale of polarizers in 2020 was about US $13.21 billion, of which the proportion of Chinese market continued to increase. From 2015 to 2020, the proportion of the Chinese market increased from 21.64% to 40.15%, but the supply of polarizers in China is still very limited. Since the second half of the year, although the prosperity of the panel industry has declined and the panel price has continued to decline, the price of polarizer is mainly determined by the relationship between supply and demand, and the panel price reduction has little impact on the price of polarizer. The growth of panel demand in China will accelerate the localization of polarizers, and the company is expected to open medium and long-term growth space.
Technical strength ensures the leading position, steadily expand production and accelerate domestic substitution. After years of technological research and development, the company has fully mastered the key technologies such as PVA film dyeing, extension and compounding, successfully broke the technological monopoly of Japan and South Korea, and became one of the main polarizer suppliers in China. The company has three major production bases in Shenzhen, Hefei and Putian. At present, it mainly has six production lines. Among them, the new production line in Longgang, Shenzhen was put into operation in 2021 and is expected to finish climbing by the end of the second quarter of 2022. In the long run, the localization of polarizers is an inevitable trend, and abundant production capacity is the premise of domestic substitution: the company plans a 1490mm vehicle polarizer line 7 in Putian (production capacity of 10 million square meters / year); Hefei phase II plans a 1720mm production line (with a planned production capacity of 30 million square meters / year), mainly for high gross profit and large-size TV products. With the continuous expansion of production scale, the company will continue to optimize the product structure of all fronts and further improve the profitability of products and the core competitiveness of the company. By the end of 2021, the company’s annual production capacity is about 23.2 million square meters. With the completion of Longgang line 6 and the continuous production of Putian line 7 and Hefei phase II TV production line in the future, we expect that the company’s production capacity will reach about 33.2 and 40 million square meters in 22 and 23 years, and the total production capacity of the company will reach more than 70 million square meters by the end of 2024.
Investment suggestion: the company is expected to achieve revenue of RMB 2.93/38.9/4.82 billion in 22-24 years, net profit attributable to the parent company of RMB 400 / 603 / 796 million, corresponding to PE 11 / 7 / 5 times, and maintain the “recommended” rating.
Risk tip: the risk of untimely technical iteration, epidemic risk and price rise of upstream raw materials.
