\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 61 Yangling Metron New Material Co.Ltd(300861) )
Yangling Metron New Material Co.Ltd(300861) 2021 and the first quarter of 2022 achieved operating revenue of 1.848 billion yuan and 666 million yuan, with a year-on-year increase of 53.29% and 83.62% respectively. The net profit attributable to shareholders of the parent company was 763 million yuan and 285 million yuan, with a year-on-year increase of 68.62% and 49.16%, and the earnings per share were 191 yuan and 0.71 yuan.
Comments:
High growth continues, and the leading scale is far ahead of the industry. As the global leader of Vajra line, with the rapid development of photovoltaic industry, the company grows together with the industry with the lowest cost advantage. In 2021, the global PV installed capacity increased by 170gw, with a growth rate of 30.55%. In the first quarter of 2022, it continued to grow at a high rate, with a new installed capacity of 30GW. With the rapid growth of photovoltaic installed capacity, thanks to the rapid expansion of the company’s production capacity, the sales volume maintained a faster growth rate, which brought the rapid growth of the company’s operating revenue in 2021 and the first quarter of 2022. The scale of operating revenue in 2021 was 6.26 times that of the second place, which continued to increase compared with 5.01 times that of 2020, and the absolute position advantage of the leader was obvious.
Expand the scale of advantageous customers and expand the revenue of other customers. China’s photovoltaic silicon wafer industry downstream of the company is a highly concentrated industry, with the top 2 and 10 enterprises accounting for more than 60% and 90% of the market. The company has established an interdependent high viscosity customer relationship with Longi Green Energy Technology Co.Ltd(601012) the leading customer of silicon wafer by taking advantage of its own technology, scale, low cost and service advantages. In 2021, the company’s revenue in Longi Green Energy Technology Co.Ltd(601012) was 1.15 billion yuan, an increase of 39% year-on-year. The proportion of the company’s revenue from other customers in the total revenue increased significantly, reaching 37.75%, a year-on-year increase of 7.64 percentage points, and the company’s market expansion was wider.
Cost advantage and profitability continue to lead. Due to the advantages of scale and production technology, the unit production cost of the company is significantly lower than that of Companies in the same industry. In 2021, the unit production cost was 17.17 yuan / km, a year-on-year decrease of 2.48 yuan / km, which is at the lowest level in the industry and 5.37 yuan / km lower than that of similar listed companies with the penultimate unit cost. The gross profit per ton of the company was 23 yuan / km in 2021. Although the comprehensive price of the company decreased by 16% year-on-year in 2021, the gross profit per ton of the company was still at the highest level due to the advantage of low cost.
Earnings forecast and investment rating: we expect the company’s earnings per share from 2022 to 2024 to be 2.62 yuan, 3.31 yuan and 4.19 yuan, and the corresponding dynamic PE is 23 times, 18 times and 14 times. Considering that the company’s leading position is stable, the cost continues to decline and remains the lowest, the moat is further consolidated to maintain the “strongly recommended” investment rating of the company.
Risk tip: the development speed of photovoltaic industry is lower than expected.
