\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 46 Jiangsu Nata Opto-Electronic Material Co.Ltd(300346) )
Event:
The company released the first quarterly report of 2022, realizing an operating revenue of 411 million yuan, a year-on-year increase of 94.67%; The net profit attributable to the parent company was 81 million yuan, a year-on-year increase of 89.38%; The net profit attributable to the parent company after non deduction was 65 million yuan, with a year-on-year increase of 102.29%.
Comments:
The volume and price increased simultaneously, the performance increased significantly, and the cost side increased slightly
Benefiting from the continuous improvement of market demand, the production and sales volume of the company’s products increased and the price increased in the first quarter, and the performance increased significantly. The gross profit margin in the first quarter was 48.07%, a year-on-year increase of 3.21 PCT; The net interest rate was 25.98%, down 0.43pct year-on-year. From the expense side, the management expense ratio and financial expense ratio increased significantly in the first quarter, with the management expense ratio of 11.41%, an increase of 3.57 PCT, mainly due to the amortization of new intangible assets, the increase of salary and the increase of the business scale of subsidiaries; The financial expense ratio was 1.37%, up 1.35pct, which was mainly due to the interest accrued on bank loans and repurchase obligations.
Teqi is the core revenue source of the company, and ARF photoresist is progressing smoothly
After the company acquired feiyuan in 2019, feiyuan gas has become one of the world’s major producers of nitrogen trifluoride and sulfur hexafluoride and one of the company’s main sources of profit. The company’s capacity of nitrogen trifluoride has been expanded from 1000 tons to 4000 tons. In the future, with the completion and release of 7200 tons of capacity in Ulanqab, the company’s performance boom of nitrogen trifluoride is expected to continue. In addition, the company’s ARF photoresist has passed the 02 special acceptance, and several key R & D products have also passed the technical verification of key customers. If the products are promoted smoothly, the company’s 25 ton photoresist capacity can be replaced by domestic products.
Profit forecast and investment suggestions
Taking into account the rising pattern of the company’s volume and price under the high climate of the industry, we expect the revenue of 22-23 years to be 1.2571564 billion yuan respectively (the original value is 773 / 903 million yuan), the net profit attributable to the parent company to be 207 / 285 million yuan respectively (the original value is 142 / 159 million yuan), and the profit forecast for 24 years to be 1.929 billion yuan, the net profit attributable to the parent company to be 358 million yuan, EPS to be 0.50/0.68/0.86 yuan / share, and the corresponding PE to be 61 / 45 / 35x respectively. Considering that the company is in a leading position in the field of photoresist in China, combined with the company’s nearly three-year history of PE, the company is given 70 times PE in 22 years, corresponding to the target price of 34.73 yuan, maintaining the rating of “overweight”.
Risk tips
The company’s R & D and mass production are less than expected, the demand of downstream customers is less than expected, and the capacity construction is less than expected.
