\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 137 Ningbo Boway Alloy Material Co.Ltd(601137) )
Event: the company released the report for the first quarter of 2022. The company achieved an operating revenue of 3.326 billion yuan, a year-on-year increase of 58.40%, and a net profit attributable to shareholders of listed companies of 136 million yuan, a year-on-year increase of 15.47%, accounting for 4.08% of the operating revenue.
Comments: we are optimistic about the large volume of Ningbo Boway Alloy Material Co.Ltd(601137) new materials business, the normal profit of photovoltaic modules, the gradual implementation of high-end logic of product structure, and the expected delivery and release performance.
The business of new materials continued to grow at a high speed, and the high-end products were gradually implemented. In 2022q1, due to the continuous volume of new material business, the company's receivables financing was 179 million yuan, a year-on-year increase of 51.08%; Due to the high global energy prices, the company's operating costs increased significantly, with an operating cost of 2.935 billion yuan, a year-on-year increase of 64.61%. In contrast, the company's operating revenue increased by only 58.40% year-on-year. Short term manufacturing cost factors inhibit the growth of the company, but the growth momentum brought by long-term high value-added products and R & D and transformation of new products remains unchanged. We are optimistic that as a leader in the non-ferrous alloy material industry, the R & D investment will bring about the industrialization of materials every year, and the high-end logic of product structure will be gradually implemented. The sector and strip materials are expected to continue to be in large quantities this year.
Photovoltaic is expected to recover rapidly and help return to the growth channel. The acceptance payment for raw material procurement of the company's new energy business increased in the current period, with notes payable of 1.028 billion yuan, a year-on-year increase of 42.63%; At the end of the previous period, we received a large amount of advance payment from overseas customers of new energy business. In this period, we successively shipped goods, and the contract liability was 188 million yuan, a year-on-year decrease of 74.39%. From an overseas perspective, the US Court of international trade announced on November 16, 2021 that it would restore the tariff exemption of double-sided Cecep Solar Energy Co.Ltd(000591) components and reduce the tariff rate of 201 from 18% to 15%. From the perspective of China, the reform trend of energy structure remains unchanged, and the growth demand of photovoltaic sector is relatively certain. The company upgraded the battery efficiency from 182 / 210 to the first level in the world.
The project under construction is nearing completion and the capacity release is imminent. In the first quarter of 2022, the cash flow expenditure generated by the company's investment activities was 200 million yuan, a year-on-year decrease of 56.39%. In the first quarter of 2022, the 50000 ton special alloy strip project of the company has been nearly completed, and the batch supply of automotive electronic materials will be realized; 6700 ton aluminum welding wire project is about to release production capacity, which is mainly used in high-speed railway industry. With the projects under construction put into operation, the company's long-term growth space is about to open.
Investment suggestion: the company will benefit from the high prosperity of the downstream and is expected to realize the domestic substitution logic by virtue of the continuous large-scale new material business, the landing of high-end products, the shipment of photovoltaic business + technical transformation and the upcoming release of production capacity of projects under construction. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 650 million yuan, 859 million yuan and 1143 million yuan, maintaining the "buy" rating.
Risk tip: capacity expansion is less than expected; The price of upstream raw materials fluctuates sharply; Downstream demand expansion is less than expected; International trade risks.
