\u3000\u3 Guocheng Mining Co.Ltd(000688) 598 Kbc Corporation Ltd(688598) )
Performance summary: in the first quarter of 2022, the company achieved an operating revenue of 450 million yuan, a year-on-year increase of 125.80%; The net profit attributable to the parent company was 203 million yuan, a year-on-year increase of 162.50%; The net profit deducted from non parent company was 137 million yuan, with a year-on-year increase of 83.94%.
Q1 performance exceeded expectations, and the gross profit margin remained at a high level. In the first quarter, the production and sales of the company maintained a high level, and the performance exceeded expectations. The company’s comprehensive gross profit margin was 53.35%, down 9.13pp year-on-year and 2.20pp month on month, still maintaining a high level; After deducting the net interest rate not attributable to the parent company, it was 30.33%, down 3.48pp month on month. The company’s products maintain a certain price reduction every year to benefit customers and expand the market share. In addition, the price of carbon fiber, the main raw material of carbon thermal field, remains high. The company’s purchase price of carbon fiber was RMB 202174 million / ton, with an average year-on-year increase of RMB 202174%. With the continuous production of Chinese carbon fiber manufacturers this year, the price pressure of raw materials is expected to ease. The company will continue to invest in R & D and improve the utilization rate of raw materials and product yield through technological innovation, process improvement and fine management, which will become the focus of cost reduction in the next step.
The layout of new businesses in multiple fields, and the dawn of the second growth curve is beginning to appear. The company is actively developing carbon based material industry projects such as the third generation semiconductor silicon carbide thermal field, hydrogen fuel cell carbon paper, carbon ceramic brake disc, ultra pure materials for semiconductors and ultra pure carbon powder. At present, the carbon ceramic brake disc has passed iatf169492016 quality management system certification and has been sent to the main engine factory. The company has completed the development of type III hydrogen storage bottle and is developing type IV hydrogen storage bottle. Recently, the company signed a strategic cooperation agreement with Tianke Heda to reach an in-depth strategic partnership on the development and application of high-purity thermal field materials, high-purity thermal insulation materials and high-purity powder materials in the third generation semiconductor field. Focusing on the multi field layout of carbon matrix composites, the company is expected to gradually contribute revenue from the second half of the year.
It is proposed to repurchase 80-100 million yuan of shares to highlight the management information. The company launched a share repurchase plan, which plans to repurchase RMB 80-100 million within 2 months after the plan is considered and approved by the board of directors, and the repurchase price shall not exceed RMB 300 / share. The repurchased shares will be used to convert the convertible bonds issued by the company. The repurchase at the bottom shows the medium and long-term development information of the company’s management.
Profit forecast and investment suggestions. The company’s performance continues to exceed expectations, reducing prices and making profits to customers by virtue of cost and scale advantages, so as to expand the market share. In the future, through the improvement of carbon fiber utilization rate and product yield, the profitability is expected to maintain a high level. New businesses such as hydrogen energy, carbon / ceramic composites and silicon carbide are progressing smoothly. It is estimated that from 2022 to 2024, the net profit attributable to the parent company of the company will be 647 million yuan, 834 million yuan and 967 million yuan respectively, corresponding to 23, 18 and 16 times of PE respectively, with a compound growth rate of 24.49%. Maintain the “buy” rating.
Risk tip: the price of raw material carbon fiber has risen sharply, and the competition in photovoltaic heat field industry has intensified.
