\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 87 Sunresin New Materials Co.Ltd Xi’An(300487) )
Core view:
Event: the company released its annual report for 2021, achieving a revenue of 1.195 billion yuan, a year-on-year increase of 29.51%; The net profit attributable to the parent company was 311 million yuan, a year-on-year increase of 53.85%. 2021 cash dividend plan: cash of 4.3 yuan (tax included) will be distributed for every 10 shares and 5 shares will be added. The company also released the first quarterly report of 2022, realizing a revenue of 332 million yuan, a year-on-year increase of 13.2%; The net profit attributable to the parent company was 81 million yuan, a year-on-year decrease of – 7.79%.
Financial stability, continuous improvement of cash flow and high-quality growth can be expected. 2021: the net profit margin of sales increased by 4.37 percentage points to 25.565, and the ROE (weighted) increased by 1.57 percentage points to 16.43%; The company’s financial expenses remain at a very low level, with an asset liability ratio of 32.38%, and its finance is quite stable; The net cash flow was 350 million yuan, with a year-on-year increase of 34.51%, a year-on-year increase of 12.55 percentage points compared with 82.24%, and the improvement of cash flow continued to be stable. In 2022q1, affected by the change of business structure, the rise of commodity prices and the epidemic, the net interest rate decreased by 5.31 percentage points to 23.71%, and the ROE (weighted) decreased by 1.49 percentage points to 3.79%; The asset liability ratio increased by 7.01 percentage points to 38.59%, still at a relatively low level; The net cash flow was 112 million, a year-on-year increase of 110.27%, the cash to cash ratio was 116.86%, a year-on-year increase of 53.14 percentage points, and the cash flow continued to maintain an excellent level. The company has strong profitability, good financial condition and excellent cash flow. Short-term disturbance does not change the overall high-quality development pattern of the company. The company has significant technical advantages. Under the background of industrial transformation and upgrading, the separation and purification market in the field of high-precision and cutting-edge technology has broad space and can develop continuously and steadily.
Low carbon and high-end applications are leading, and all fields are blooming in an all-round way; Strong growth momentum. The company’s revenue from adsorption materials increased by 5.2 billion yuan year-on-year to 2029, accounting for 52.1% of the company’s revenue. In terms of application fields, water treatment and ultra purification amounted to 287 million yuan, a year-on-year increase of 69%; Life science was 201 million yuan, a year-on-year increase of 41%; Energy conservation and environmental protection reached 134 million yuan, a year-on-year increase of 108%; Metal resources were 122 million yuan, a year-on-year increase of 33%; Chemical industry and catalysis reached 89 million yuan, with a year-on-year increase of 68%; Food processing was 46 million yuan, a year-on-year decrease of 2%. In 2022q1, after deducting the revenue impact of about 100 million yuan from the two major projects of Jingtai and zangge, the company’s “basic sector” revenue increased by more than 60%. Under the background of the impact of the epidemic, this excellent performance highlights the strong competitiveness of the company’s products and technologies and the strong growth power of the company’s overall business.
Salt lake lithium extraction opens up a new round of growth space, with significant advantages and great potential in lithium related business. Since 2021, the company has successively signed a number of industrial orders for lithium extraction from salt lake brine, including the 4000 T / a phase II of Jintai lithium industry, the 4000 T / a transformation of Minmetals Salt Lake phase II, the 10000 t / a lithium hydroxide of Guoneng mining, the 10000 t / a lithium hydroxide of Jinhai lithium industry, Tibet Summit Resources Co.Ltd(600338) 25000 T / A, and the 5000 t / a of jinkunlun lithium industry. The total contract amount has reached 1.578 billion yuan, and the total capacity of lithium carbonate / lithium hydroxide is 58000 tons, almost covering the whole project of lithium extraction and adsorption in salt lake, Once again proved and consolidated its market position. For the national energy mining project, the company is responsible for the entrusted operation of Jieze Chaka Salt Lake for 15 years. During this period, the cumulative output of lithium hydroxide is 150000 tons, which will bring long-term income from the production and sales of lithium carbonate to the company. According to the calculation of 300000 tons / year of new construction and 700 million yuan / 10000 tons of investment in the world, the market space of lithium extraction from salt lake alone exceeds 20 billion.
At present, the company’s pilot projects related to lithium extraction from hand-held salt lakes are all over China, including Qinghai Salt Lake Industry Co.Ltd(000792) “pilot test and research project for efficient separation of lithium precipitation mother liquor in salt lakes”, “pilot test of Byd Company Limited(002594) 600 tons of lithium carbonate and supporting pilot production line for boron removal, complete set of equipment for deep magnesium removal of 10000 tons / year ed concentrated water in Minmetals Salt Lake, etc; At the same time, the company has extensively expanded the overseas Salt Lake market, collected brine from different countries and regions for testing, and provided customized pilot test equipment and technical feasibility schemes for salt lakes in South America, Europe, North America and other places. Typical customers include sqm, ansson and so on. Represented by lithium extraction from Salt Lake, the company has extensive layout in the lithium industry chain. Adsorption and separation materials and technologies are widely used in the fields of ore lithium refining, lithium resource recovery, lithium extraction from groundwater resources, associated minerals and so on, covering customers such as Ganfeng Lithium Co.Ltd(002460) , Bangpu cycle, Youngy Co.Ltd(002192) , Cngr Advanced Material Co.Ltd(300919) and so on.
New products continue to emerge under the separation and purification technology platform, and the double high incremental market continues to open
Metal resources: in addition to the lithium industry, the company continues to work in the field of hydrometallurgy, and has always maintained a high market share in the extraction of gallium from alumina mother liquor; Nickel extraction from laterite nickel ore can provide overseas customers with an overall solution of nearly 40 million yuan of adsorption materials and system devices; In terms of cobalt recovery, the company has obtained a whole line contract in the Democratic Republic of the Congo and has been successfully put into operation; In terms of wet extraction of other metals, the total order amount of adsorption materials such as uranium extraction, gold extraction, vanadium extraction and scandium extraction exceeds 110 million yuan, and rhenium extraction and tungsten extraction are also sold in small quantities.
Life science: the company’s revenue from high value-added products in this field was about 100 million yuan in 2021, becoming the main force of performance growth. Some of the company’s key products have varying degrees of industrialized orders and verification results in the fields of antibody, virus purification, genetic engineering and cell therapy. At present, the company has built a 20000 L / a soft rubber production line and a solid carrier production workshop, and plans to build a 50000 L / a soft rubber production line this year. The new production capacity will continue to provide support for the company’s development in life science fields such as biomedicine, API and natural product extraction.
Energy conservation and environmental protection: the company’s “VOCs efficient treatment resin adsorption technology” has been incorporated into the technical achievement database of the national comprehensive service platform for the transformation of scientific and technological achievements in ecological environment. Orders signed in 2021 were 26.7 billion, a year-on-year increase of 26.1%. In terms of CO2 capture, the company has cooperated with climeworks and others to build a model project in Iceland and form a large-scale supply. In the field of degradable plastics, the company provides products and technical services in the purification of lactic acid, and has formed a ten million yuan sales; The company’s technology is also widely used in environmental protection fields such as removal of organic pollutants from industrial wastewater, treatment of heavy metal pollution and recycling.
Water treatment and ultrapure water: relying on the spray homogenization technology, the industrial breakthrough of ultrapure water resin has been realized, and the pilot test laboratory of ultrapure water has been built. During the reporting period, the company achieved commercial sales in the field of electronic grade and nuclear grade adsorption and separation materials, gradually began to provide stable supplies to downstream customers such as BOE and Huaxing optoelectronics, and achieved a sales revenue of tens of millions. It has replaced international brands in some customer production lines, and testing and technical negotiation with Chinese chip manufacturers are also in progress. In the field of high-end drinking water, the company has gradually completed the international top certification and achieved stable supply in the field of high-end drinking water resin. In 2021, the company’s sales of high-end drinking water resin exceeded 2000 m3, with a year-on-year increase of about 200%. This market has rigid demand and huge market space, which will provide potential market space for the company’s business growth.
Valuation analysis and rating Description: it is estimated that the net profit of the company from 2022 to 2024 will be 607 million yuan, 806 million yuan and 1068 million yuan respectively, and the corresponding PE will be 21 times, 16 times and 12 times respectively. The short-term lithium extraction from salt lakes has greatly improved the performance, and the long-term high value-added and high technical barriers are expected to continue to break through, covering for the first time, and given a “recommended” rating.
Risk tip: the risk that the company’s project promotion and market expansion are not as expected.
