\u3000\u3 Shengda Resources Co.Ltd(000603) 055 Zhe Jiang Taihua New Material Co.Ltd(603055) )
The company achieved an operating revenue of 4.257 billion yuan in 2021, with a year-on-year increase of 70.19%, mainly due to the expansion of sales scale and the increase of sales unit price of main products in 21 years. Among them, the total revenue and growth rate of 21q1-q4 were 739 million (+ 57.89%), 1.100 billion (+ 84.27%), 1.229 billion (+ 103.10%) and 1.189 billion (+ 43.03%) respectively
In 2021, the net profit attributable to the parent company was RMB 464 million, with a year-on-year increase of 287.26%, mainly due to the increase of operating revenue and gross profit margin. Among them, the net profit attributable to the parent and growth rate of 21q1-q4 were 98 million (+ 458.10%), 163 million (+ 393.49%), 116 million (+ 177.09%) and 87 million (+ 217.46%) respectively.
In terms of products, the revenue of nylon filament in 2021 was 1.797 billion yuan (accounting for 42.23%) with a year-on-year increase of 113.69%; The revenue of nylon grey cloth was 1.113 billion yuan (accounting for 26.15%), with a year-on-year increase of 67.05%; The income of finished nylon fabrics was 631 million yuan (accounting for 14.82%), with a year-on-year increase of 47.76%; The income of finished polyester fabrics was 443 million yuan (accounting for 10.41%), with a year-on-year increase of 21.65%; The income of polyester grey fabric was 78 million yuan (1.83% of the total), a year-on-year decrease of 23.25%.
By region, the revenue of Chinese Mainland in 2021 was 3.551 billion yuan (83.41% of the total), a year-on-year increase of 65.20%; The foreign income was 603 million yuan (14.15% of the total), with a year-on-year increase of 86.44%. The gross profit margin of the company increased by 3.75pct to 25.54% year-on-year, and the net profit margin attributable to the parent company increased by 6.10pct to 10.89% year-on-year.
By product, the gross profit margin of nylon filament in 2021 was 24.25%, with a year-on-year increase of 2.96 PCT; The gross profit margin of nylon grey cloth was 31.61%, with a year-on-year increase of 9.61 PCT; The gross profit margin of finished nylon fabric was 28.88%, a year-on-year decrease of 0.46pct; The gross profit margin of finished polyester fabrics was 19.22%, with a year-on-year increase of 4.26pct; The gross profit margin of polyester grey fabric was 9.27%, a year-on-year decrease of 6.07pct. By region, Chinese Mainland’s gross profit margin was 24.84% in 2021, with a year-on-year increase of 4.72pct; Foreign gross profit margin was 33.28%, with a year-on-year increase of 3.06pct.
The company accelerated the promotion of new projects and new production capacity, and the production and sales volume reached a new high. In 2021, the output of nylon filament was 131900 tons, with a year-on-year increase of 71.04%, and the sales volume was 127200 tons, with a year-on-year increase of 66.56%; The output of nylon grey cloth was 289 million meters, with a year-on-year increase of 44.58%, and the sales volume was 300 million meters, with a year-on-year increase of 37.71%; The output of finished nylon fabrics was 57 million meters, with a year-on-year increase of 45.33%, and the sales volume was 55 million meters, with a year-on-year increase of 51.11%; The output of finished polyester fabrics was 43 million meters, a year-on-year increase of 12.66%, and the sales volume was 43 million meters, a year-on-year increase of 11.49%; The output of polyester grey cloth was 48 million meters, a year-on-year decrease of 44.29%, and the sales volume was 66 million meters, a year-on-year decrease of 11.84%.
Maintain profit forecast and buy rating. The company’s production capacity, technical level and R & D capacity are ahead of its peers, and has successfully grasped the opportunity of nylon industry to expand production significantly. The new production capacity is gradually released to further strengthen the depth of cooperation with the brand and help expand new customers. We expect the company’s EPS to be 0.70, 0.95 and 1.18 yuan / share in 202224, and PE to be 12.7, 9.4 and 7.5x respectively.
Risk tip: capacity expansion is less than expected; The price of raw materials fluctuates greatly; Downstream demand is lower than expected; Industry competition risk, etc.
