\u3000\u3 China Vanke Co.Ltd(000002) 080 Sinoma Science & Technology Co.Ltd(002080) )
Event: the company released the first quarterly report of 22 years, during which the company realized an operating revenue of 4.662 billion yuan, a year-on-year increase of 15.89%; The net profit attributable to the parent company was 734 million yuan, a year-on-year increase of 24.51%; Deduct non net profit of 602 million yuan, with a year-on-year increase of 7.45%.
The glass fiber continues to have a high view, the delivery of blades gradually improves, and the cost reduction and efficiency increase of lithium diaphragm are in progress. The revenue of 22q1 increased by 15.89% year-on-year, from negative to positive compared with 21q3 / Q4, and the glass fiber still maintained a high outlook. According to the data of Zhuo Chuang information, the average price of 22q1 alkali free 2400tex wound direct yarn increased by about 6.84% year-on-year, and the supply and demand continued to be in tight balance, especially the overseas order volume increased rapidly, and the sales volume of Q1 is expected to remain stable; Secondly, although the intensification of bidding competition led to the continuation of the low price of wind power blades in the first quarter of last year, after the formal cancellation of land and sea wind power subsidies this year, the annual installation rhythm is expected to be smoother. With the recovery of wind power installation, the sales volume is expected to increase gradually; The sales volume of lithium diaphragm maintained rapid growth, and the shipment reached 160 million square meters in the first two months. With the gradual production of new production lines and the promotion of technical transformation of old lines, cost reduction and efficiency increase promoted the gradual improvement of profits. The gross profit margin of 22q1 was 29.81%, up about 4.9 PCT month on month, down about 1 PCT year on year. The gross profit margin improved month on month due to the high price of glass fiber and the recovery of wind power blades; During Q1, the expense rate was 12.48%, with a year-on-year decrease of about 1 PCT, maintaining a good ability of expense control. Due to the technical improvement of glass fiber production line, the subsidiary Taibo plans to sell 280kg of rhodium powder and platinum rhodium alloy (including sold). Affected by this, the year-on-year growth rate of the company’s net profit attributable to the parent is greater than that of deducting non net profit, and the net interest rate reaches 16.68%. We expect that in the second quarter, glass fiber will maintain a high landscape, the installed capacity of wind power will gradually pick up, and the volume and price of blades are expected to rise simultaneously. With the promotion of cost reduction and efficiency increase, the profit of lithium diaphragm business is expected to gradually improve.
Q1 operating cash outflow grew rapidly, and the financing advantages under the endorsement of China building materials appeared. 22q1’s net operating cash outflow was 1.438 billion yuan, a year-on-year decrease of 112255%, mainly due to the centralized due payment of raw materials purchased by bills in 2021, resulting in an increase of about 942 million in cash expenditure for purchasing goods and receiving labor services, a year-on-year increase of 51.2%, and an increase of about 190 million in cash paid to employees, a year-on-year increase of 27.7%. Notes receivable and accounts receivable in 22q1 increased by 1.083 billion compared with 21q1, with a year-on-year increase of 26.9%, faster than the growth of revenue. The year-on-year change of cash collection during the reporting period was small, so the increase of operating cash outflow was large. In the same period, the net cash flow of the company’s financing increased by about 40.2% year-on-year. With the endorsement of the parent company China Building Materials Group, the company’s loan and credit has great advantages to provide greater financial guarantee for the company’s production and operation and capacity expansion.
60000 tons of high-strength glass fiber production line is continuously optimized. On the same day, the company announced that Taibo Zoucheng, a subsidiary of Taishan glass fiber, invested about 620 million yuan to build a high modulus and high strength glass fiber production line with an annual output of 60000 tons. At the end of 2021, the production lines of “5000 tons of ultra-fine electronic yarn per year” and “67 million square meters of electronic cloth per year” began commissioning and trial production, and the experimental production line of VIP vacuum insulation board with an annual output of 500000 square meters and supporting glass fiber core line were completed. The production lines of Taibo manzhuang F09 with an annual output of 90000 tons of high-performance glass fiber and Zoucheng F06 with an annual output of 65000 tons of ultra-fine yarn were ignited in September and December of 21, respectively. At present, the company’s high-end production capacity of glass fiber and products (wind power yarn, thermoplastic products and industrial spinning) accounts for more than 65%. At the same time, it has accelerated the expansion of high value-added products such as industrial spinning and high-strength and high modulus glass fiber yarn, and the product structure has been continuously optimized. Among them, high-strength and high modulus glass fiber yarn is one of the main raw materials of the company’s fan blades. In 2021, the self supply proportion of glass fiber products in the company’s blade raw materials is about 60%. In the future, with the gradual production of new production lines, this proportion is expected to continue to increase. Since the beginning of 2021, the price of alkali free roving has continued to rise. Driven by demand, the price may remain high. The increase of the self supply proportion of raw materials of the company is expected to reduce the production cost of fan blades and improve the profit space.
Investment suggestion: the company is in the leading position in the industry in many sectors such as glass fiber, wind power blade, lithium diaphragm and hydrogen storage bottle. Glass fiber continues to have a high outlook. With the warming of wind power installation, the company’s blade shipment gradually improves, the shipment of lithium diaphragm increases rapidly, and the profitability is gradually improved. We maintained the company’s net profit attributable to the parent company for 22 / 23 / 24 years at 4.103/4.588/5.35 billion yuan, corresponding to EPS of 2.44/2.73/3.19 yuan respectively, PE valuation of 8.49/7.59/6.51 times, 22-year target price range of 36.6-43.92 yuan, and maintained the company’s “buy” rating.
Risk warning: the installed capacity of onshore wind power in Shanghai is less than expected; Tighter environmental control affects capacity expansion and glass fiber yarn production; Solid state battery development exceeded expectations; The demand of emerging industries is lower than expected.
