\u3000\u3 Guocheng Mining Co.Ltd(000688) 323 Rayitek Hi-Tech Film Company Ltd.Shenzhen(688323) )
Event:
On April 28, 2022, the company released the first quarterly report of 2022: the operating revenue of Q1 in 2022 was 807879 million yuan, an increase of 0.66% year-on-year and 3.96% month on month; The net profit attributable to the parent company was 122818 million yuan, a year-on-year decrease of 27.23% and a month on month increase of 4.66%. The net cash flow from operating activities was 145838 million yuan, an increase of 80.44% year-on-year and a decrease of 53.77% month on month. The weighted average return on net assets was 1.38%, a year-on-year decrease of 1.36 percentage points and a month on month increase of 0.04 percentage points. The gross profit margin was 40.44% (down 5.28 percentage points year-on-year and 2.68 percentage points month on month), and the net profit margin was 15.20% (down 5.83 percentage points year on year and 0.10 percentage points month on month).
Key investment points:
The profit in the first quarter was dragged down by the rise in the price of raw materials, and the R & D investment continued to grow
In Q1 2022, the company realized an operating revenue of 807879 million yuan, a year-on-year increase of 0.66% and a month on month increase of 3.96%; The net profit attributable to the parent company was 122818 million yuan, a year-on-year decrease of 27.23% and a month on month increase of 4.67%. The company’s gross profit margin and net profit decreased year-on-year in the first quarter, mainly due to the rise in the price of raw materials and the increase in R & D expenditure. Under the conflict between Russia and Ukraine, the global crude oil price continued to rise, driving the growth of commodity prices. In the first quarter, the purchase prices of the company’s main raw materials ODA and PMDA increased by 23.56% and 32.25% respectively year-on-year. The company’s operating cost in the first quarter was 481148 million yuan, an increase of 10.44% year-on-year. At the same time, the company continued to increase R & D investment and expand its technical advantages in the field of PI film. The R & D cost in the first quarter was 6.243 million yuan, a year-on-year increase of 29.65%.
The company continues to strengthen cost management, continue to promote refined production management, reduce costs and increase efficiency. In Q1 2022, the company’s sales expense ratio was 1.60%, a year-on-year decrease of 0.28 percentage points and a month on month decrease of 0.34 percentage points; The management expense ratio was 9.98%, down 1.67 percentage points year-on-year and 2.45 percentage points month on month; The financial expense rate was 3.23%, a year-on-year decrease of 0.28 percentage points and a month on month decrease of 0.24 percentage points.
CPI film has entered the commissioning stage, which is expected to fill the gap in China in this field
CPI film for flexible display has excellent characteristics such as bending resistance, low risk of fragmentation, roll to roll processing and meeting the folding of large-size screen. With the gradual maturity of technology and the decline of cost, its application in the field of flexible display will further increase. The company has independently mastered the core technology of CPI film preparation, and successfully produced CPI film in 2018 based on the existing production line. These products have excellent optical and mechanical properties and can be folded more than 200000 times. The key performance has passed the evaluation of Chinese terminal brand manufacturers, and the sample sales have been realized for the product testing of terminal brand manufacturers and their supporting suppliers; The CPI special production line under construction by the company has entered the commissioning stage. After the production line is officially put into operation, it can realize the application of CPI film products in the field of flexible display electronic products such as folding screen mobile phones, which is expected to fill the Chinese gap in this field.
It is proposed to issue convertible bonds to promote the 1600 ton film project, and the industry competitiveness is continuously enhanced
PI film is widely used in many fields, such as flexible circuit board, consumer electronics, high-speed rail transit, wind power generation, 5g communication, flexible display, aerospace and so on. With the application of copolymerization modification and other new technologies, through the continuous exploration and improvement of its formula design and production process, PI film has derived more functional applications, and the downstream application fields have been continuously expanded. It is expected to become an important material in the new energy field such as film Cecep Solar Energy Co.Ltd(000591) cell, fuel cell proton exchange membrane and so on in the future. Due to the gap between the overall level of China’s PI film industry and foreign countries, most of them stay in the field of low-end products, while the field of high-performance PI film is mainly occupied by foreign giants such as DuPont, Zhongyuan Chemical and piam, and the products are heavily dependent on imports. Under the background of upgrading of China’s industrial structure and localization of key materials, there is considerable market space for import substitution of high-performance PI films. Enterprises with independent and perfect core technology system represented by the company usher in important opportunities for technological innovation and localization substitution.
The company plans to issue convertible bonds to raise no more than 430 million yuan to build the Rayitek Hi-Tech Film Company Ltd.Shenzhen(688323) 1600 ton PI Film Project in Jiaxing. The project has completed the preliminary investigation and demonstration, project site selection, preparation of project feasibility study report and project filing. The main construction project of the plant has been completed, some production line equipment has been present and is being installed. It is expected that some production lines will be debugged in the fourth quarter of this year, Contribute part of the commissioning capacity and basically complete and put into operation next year. The main products of the project include thermal control PI film, electronic PI film, electrical PI film, special function PI film and other series products. Based on the existing production capacity, further expand the product category, upgrade the equipment level and improve the process technology, and strive to realize the industrial application of PI film in more new application fields such as new energy, so that the company has a more balanced and richer product structure in the industrial chain, Occupy a more favorable competitive position.
Profit forecast and investment rating: Based on the principle of prudence, the impact of convertible bond issuance on the company’s performance is not considered temporarily. It is estimated that the net profit attributable to the parent company in 2022, 2023 and 2024 will be 93, 223 and 331 million yuan respectively, and the corresponding PE will be 39.08, 16.34 and 11.02 times respectively, maintaining the “buy” rating.
Risk warning: macroeconomic fluctuation risk; The production capacity is lower than expected; Risk of price fluctuation of raw materials; Future demand decline; The progress of the new project is less than expected; Uncertainty in the issuance process of convertible bonds.
