\u3000\u30 Zhongyan Technology Co.Ltd(003001) 96 Jiangsu Changhai Composite Materials Co.Ltd(300196) )
The company realized a net profit attributable to the parent company of 230 million yuan in 22q1, with a year-on-year increase of 115%
The company released the first quarterly report of 22 years, realizing a revenue of 750 million yuan, with a year-on-year increase of 36.1%. The net profit attributable to the parent company was 230 million yuan, with a year-on-year increase of 115%. Deducting the net profit not attributable to the parent company was 180 million yuan, with a year-on-year increase of 80%. The non operating profit and loss was mainly the profit and loss from the disposal of non current assets of the company of 45.52 million yuan (mainly the sale of rhodium powder). The high foreign demand in the first quarter led to the simultaneous rise of the volume and price of the company’s glass fiber business. We believe that the high prosperity of the industry is expected to continue and continue to be optimistic about the growth of the company.
Q1 glass fiber business volume and price rise together, and the high boom is expected to continue
We expect that the volume and price of the company’s glass fiber business will rise simultaneously in the first quarter. In terms of sales volume, the 100000 ton roving production line of the company will be put into operation smoothly in 21 years and will begin to increase in volume in 22 years; In terms of price, according to Zhuo Chuang information, the price of China’s glass fiber in 22q1 increased slightly year-on-year. On the other hand, the national export demand of glass fiber in the first quarter was high. The total export of glass fiber yarn and products was 545500 tons, a significant increase of 49.7% year-on-year. The average export price per ton was US $1746 / ton, the same as the basic price. We expect that the proportion of the company’s Q1 export revenue may increase, and the export price is higher, driving the overall price rise. Throughout the year, we believe that the export demand will continue to maintain a high boom, and under the carbon emission reduction policy, the new energy industry is facing greater development opportunities. The installed capacity of wind power and the demand for new energy vehicles are expected to maintain rapid growth, driving the demand for glass fiber yarn. We expect the company’s annual sales volume to continue to grow.
The gross profit margin continued to rise month on month / year on year, and the net profit margin deducted from non parent company in a single quarter hit a record high
22q1’s overall gross profit margin was 38.8%, up 5.8pct year-on-year and 4.6pct month on month. We expect it to be mainly due to the increase in the proportion of overseas revenue. During Q1, the expense ratio was 10.7%, with a year-on-year increase of – 1.0pct, of which the sales / management / financial expense ratio was – 2.1 / – 0.6 / + 1.7pct respectively. The decrease in the sales expense ratio was mainly due to the transfer of packaging and service fees into operating costs, and the increase in the financial expense ratio was due to the increase in interest expenses of convertible bonds. Finally, the net interest rate of non parent company deduction was 24%, with a year-on-year increase of 5.8/4.6pct respectively, and the net interest rate in a single quarter hit a record high, We expect it to remain high in the future.
Growth is expected to begin to cash in and maintain the “buy” rating
We judge that the high prosperity of the glass fiber industry in the past 22 years is expected to continue, and the price center may remain high. The new production capacity of raised investment projects will continue to digest and support income growth. In the medium and long term, the company will continue to promote the construction of various projects (including the production capacity of Shanghai Pudong Development Bank Co.Ltd(600000) tons of glass fiber yarn project and felt and other products), and the growth is expected to begin to realize. Maintain the 22-24 year profit forecast of RMB 700 / 840 / 980 million, maintain the company’s 22-year 12 times target PE, corresponding to the target price of RMB 20.52, and maintain the “buy” rating.
Risk tip: the company’s production progress is less than expected, the demand for glass fiber is declining, and the industry’s production capacity is greatly expanded
