\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 552 Triumph Science & Technology Co.Ltd(600552) )
Key elements of the report:
On April 25, Triumph Science & Technology Co.Ltd(600552) released the Q1 performance report for 22 years. The revenue was 1.312 billion yuan (yoy-19.18%), the net profit attributable to the parent company was 25 million yuan (YoY + 57.41%), and the net profit deducted was 16 million yuan (YoY + 65.74%). The gross profit margin and net profit margin of the company in Q1 of 22 years increased by 1.49 and 1.59 percentage points year-on-year.
Key investment points:
In the first quarter, the company's net profit increased significantly, and the gross profit margin and net profit margin increased year-on-year: the company's business is mainly divided into two parts. In 2021, the revenue of new display business accounted for 80.18% and that of new materials business accounted for 18.60%. The decline of the company's revenue in the first quarter was mainly due to the weak demand due to factors such as the Spring Festival holiday, and the decline of additional demand caused by the epidemic. We judge that the current business demand of the sector has returned to the normal before the 19-year epidemic and the demand is relatively stable; At the same time, with the gradual volume of UTG and vehicle module projects and the advent of seasonal peak season, the revenue of subsequent sectors is expected to increase. In the past 22 years, the sales and R & D expense ratio of Q1 company decreased, with a year-on-year decrease of 0.52 and 0.53 percentage points; Decreased by 0.32 and 2.19 percentage points month on month. At the same time, the volume and price of the company's new material business increased simultaneously, and the gross profit margin increased by 1.49 percentage points year-on-year; Under the year-on-year improvement of gross profit margin and net profit margin, the net profit increased significantly by 57.41% year-on-year.
UTG phase II and pen electric vehicle on-board touch display projects are progressing smoothly, raising the growth expectation of display business: the company's flat panel display, pen electric module, high flexible folding glass (UTG) and other businesses are leading in China, with obvious technical advantages. The 30 micron high strength flexible glass (UTG) independently developed by the company is the only ultra-thin flexible glass industry chain covering "high strength glass - ultra thin thinning - high-precision post-processing" in China, with leading product performance. The first phase of the project has been completed and put into operation in July 21, and is expected to grow in large quantities in 22 years; The second phase (15 million pieces / year) project will be completed by the end of 22 years, contributing to the subsequent increment. At the same time, the company invested 471 million yuan to build six production lines of pen touch display and two on-board touch display modules in March 22. It is expected to be completed in March 23, which will realize a sales revenue of 2.449 billion yuan, accounting for 38.73% of the operating revenue in 21 years, with a significant contribution to revenue.
The new material business has strong technical strength and can be expected to produce large quantities in 22 years: the company's fused zirconia and stabilized zirconia businesses maintain the leading position in China. The annual sales volume of fused zirconia 21 increased by 30% year-on-year, the production and sales volume of stabilized zirconia increased by 35% year-on-year, and the production and sales volume of spherical quartz powder ranked among the top three in China. At the same time, nano barium titanate products have passed the certification of Chinese head enterprises to realize batch supply; Zirconia nano composite products have passed the pilot certification; Major technological breakthroughs have been made in high-purity synthetic silica for semiconductors, with purity up to 6n-7n, and there is a large space for domestic substitution. We judge that the company's basic businesses such as fused zirconia and stabilized zirconium have obvious technical advantages and rapid revenue growth. At the same time, emerging businesses such as nano barium titanate and high-purity synthetic silica are about to increase in volume, and the overall performance of new materials business is expected. Profit forecast and investment suggestions: it is estimated that the operating revenue from 2022 to 2024 will be RMB 76.22/89.53/10.36 billion, and the net profit attributable to the parent company will be RMB 256368/506 million respectively, corresponding to the closing price on April 27, EPS will be RMB 0.34/0.48/0.66, and PE will be RMB 22.64x/15.77x/11.45x, maintaining the "overweight" rating.
Risk factors: macroeconomic fluctuation risk; Sino US trade friction, covid-19 pneumonia epidemic risk; Market competition risk; Risk of untimely development of new products; Raw material supply price fluctuation risk.
