\u3000\u3 Shengda Resources Co.Ltd(000603) 578 Zhejiang Three Stars New Materials Co.Ltd(603578) )
Key investment points
22q1 revenue + 28.97%, deducting the net profit not attributable to the parent company of 31 million yuan, a year-on-year increase of 56.15%
22q1 company achieved an operating revenue of 262 million yuan, a year-on-year increase of + 28.97%; The net profit attributable to the parent company was 34 million yuan, a year-on-year increase of 39.59%, and the net profit not attributable to the parent company was 31 million yuan, a year-on-year increase of 56.15%. According to our calculation, excluding the influence of the newly merged company Qingdao Weisheng, the main business income of 22q1 glass door of the company increased by about 42% year-on-year. The revenue of the main industry of glass doors continued to increase, exceeding the consensus expectation of the market.
The pressure on the cost side has eased, and the margin of the company’s net interest rate has improved
Affected by the rise of raw materials in 21 years, the cost side of 21q3-q4 of the company is under pressure, and the gross profit margin is 13.22% and 13.81% respectively; Qingdao Weisheng only has a net interest rate of 6.05%. Considering that the cost of raw materials of the company consists of glass (accounting for 50%), aluminum (accounting for about 15%) and PVC (accounting for about 15%), 22q1 with the improvement of the price of main raw materials and the superposition of scale effect to reduce costs, the profitability of the company has now reached an upward turning point, the growth rate of net profit is significantly higher than that of revenue, the gross profit margin has increased to 18.05% and the net profit margin has reached 12.83%.
Profit forecast and valuation
The growth rate of the company is expected to be RMB 1.25-2.42 billion / 20201, with the corresponding growth rate of RMB 1.25-2.42 billion / 20201 respectively; The net profit attributable to the parent company was 139 / 187 / 246 million yuan respectively, with a corresponding growth rate of 41.07% / 34.86% / 31.19% respectively. The corresponding PE is 13.22x/9.80x/7.47x respectively.
Risk tips
The expansion of new customers is less than expected, and the price fluctuation risk of raw materials.
