\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 61 Yangling Metron New Material Co.Ltd(300861) )
Matters:
The company released the first quarterly report of 2022, achieving a revenue of 666 million yuan, a year-on-year increase of 83.62%, a net profit attributable to the parent of 285 million yuan, a year-on-year increase of 49.18%, and a net profit of 268 million yuan after deduction, a year-on-year increase of 80.64%. EPS0. 71 yuan. The company's performance exceeded market expectations.
Ping An View:
Diamond line sales increased significantly, driving the continuous growth of quarterly revenue. In the first quarter, the company realized an operating revenue of 666 million yuan, a year-on-year increase of 83.62% and a month on month increase of 15.6%. The significant increase in revenue was mainly due to the increase in the shipment of diamond line. In the first quarter, the company sold 16.94 million kilometers of diamond line, a year-on-year increase of 97.6% and a month on month increase of 16.4%; In the first quarter of 2022, China's strong demand for new photovoltaic installed capacity drives the rapid growth of the demand for diamond wire for monocrystalline silicon wafer cutting.
The gross profit margin increased month on month, and the cost control was better. In the first quarter, the company's comprehensive gross profit margin was 54.22%, up 2.7 percentage points month on month; In the first quarter, the sales revenue of diamond line per kilometer was about 39.3 yuan, a month on month decrease of about 1%, and the production cost per kilometer was about 18.0 yuan, a month on month decrease of about 6%. It is estimated that the scale effect thinned the costs of direct labor, depreciation, energy and power expenditure. During the first quarter, the expense rate was only 5.53%, down 4.24/4.84 percentage points year-on-year / month on month, further boosting the company's profitability.
We will continue to expand production, reduce costs and develop new products to consolidate our competitive advantage. By the end of 2021, the annual production capacity of the company's diamond line had reached 70 million kilometers. In the first quarter of 2022, the company continued to increase production expansion, and upgraded the efficiency of the high-efficiency diamond line production line to improve the design capacity of a single production line; Actively expand to the upstream of the supply chain, focus on promoting the independent production of cutting wire substrate and diamond powder, and improve cost competitiveness; Focusing on the demand for thin and large photovoltaic chips, strengthen the research and development of new products with finer wire diameter, stronger cutting force and better cutting quality, and strengthen the differentiation and competitiveness of product performance.
Investment advice. Considering the industry demand and the company's profit level exceeding the expectation, the company's profit forecast is increased. It is estimated that the company's net profit attributable to the parent company from 2022 to 2024 will be 1.143, 1.427 and 1.725 billion yuan (the original forecast value is 963, 1.153 and 1.407 billion yuan), with a dynamic pe2.1 billion yuan 1. 16.9, 14.0 times. The photovoltaic industry is booming. The company has outstanding competitive advantages in the field of diamond wire and maintains the "recommended" rating of the company.
Risk warning. 1) The demand of photovoltaic industry is affected by many factors such as green policy, macro-economy, industrial competition and covid-19 epidemic. There is a risk that the market demand for new photovoltaic installation and diamond line is less than expected. 2) The competition pattern of silicon wafer downstream of diamond line changes rapidly. If the company cannot adapt to this trend and effectively expand emerging silicon wafer customers, it may affect the market share. 3) Intensified industry competition or rising raw material prices may cause the company's profitability to be lower than expected.
