\u3000\u30003 Tunghsu Optoelectronic Technology Co.Ltd(000413) 00041)
Key points
Event 1: on the evening of April 22, the company released its annual report for 2021. In 2021, the company achieved a revenue of 2.954 billion yuan, a year-on-year increase of + 36.54%; The net profit attributable to the parent company was 227 million yuan, a year-on-year increase of + 4.20%. Among them, 2021q4 company achieved an operating revenue of 698 million yuan, a month on month increase of – 17.59%, a year-on-year increase of + 26.80%; The net profit attributable to the parent company was 10 million yuan, with a month on month ratio of – 85.95% and a year-on-year ratio of – 55.23%.
Event 2: on the evening of April 26, the company released the first quarterly report of 2022. In Q1 2022, the company achieved a revenue of 964 million yuan, an increase of 33.06% year-on-year and 38.08% month on month; The net profit attributable to the parent company was 88.61 million yuan, a year-on-year increase of 17.33% and a month on month increase of 817.56%.
Event 3: on the evening of April 22, the company issued the announcement of the third phase of employee stock ownership plan (Draft). The scale of the current phase of employee stock ownership plan accounts for about 3.34% of the total share capital of the company on the announcement date of the draft of the current phase of employee stock ownership plan, and the maximum amount of funds to be raised is about 101 million yuan.
Comments:
The volume and price of silicone rubber increased at the same time, and the company’s revenue increased steadily. Affected by the rise of raw materials, the performance was temporarily under pressure. Driven by the gradual transfer of the production and consumption center of global adhesive enterprises to China, the company achieved steady growth in performance, and its operating revenue and net profit reached a record high in 2021. In 2021, the company achieved an adhesive sales revenue of 2.211 billion yuan, with a year-on-year increase of 39.87%. Organic silica gel and polyurethane adhesive are the company’s core adhesive products. In 2021, the company’s average selling price of organic silica gel increased by 29.69%, and the sales volume increased by 15.78% year-on-year; The average selling price of polyurethane glue decreased slightly by 0.51%, but the sales volume increased by 21.32% year-on-year. In 2021, the gross profit margin of organic silica gel and polyurethane glue decreased by 8.54 PCT and 12.97 PCT respectively year-on-year, but the operating revenue increased by 50.15% and 20.70% year-on-year respectively. In addition to the adhesive film, the company’s operating revenue increased by 360001% year-on-year. In addition, in 2021, the company’s R & D expenses reached 137 million yuan, accounting for 4.63% of the company’s operating revenue, with a year-on-year increase of 35.09%. The continuous increase of R & D efforts is conducive to the expansion of the company’s business and the improvement of market share while consolidating the company’s leading position in adhesives. The significant rise in raw material prices in the second half of 2021 temporarily put pressure on the company’s performance. The average price of raw material silicone polymer in the second half of 2021 increased to 32.03 yuan / kg, up 44.47% month on month and 73.89% year-on-year. In 2022, thanks to the high price of organic silica gel and other products and the further increase of product sales, the company’s Q1 revenue increased by more than 30% year-on-year and month on month. However, due to the high price of raw materials, the gross profit margin of 22q1 sales of the company decreased by about 3.17pct year-on-year.
It is proposed to raise 850 million yuan to invest in the lithium battery adhesive project and seize the development opportunities in the lithium battery field. At present, the company has an annual production capacity of 95600 tons of silicone rubber, 32000 tons of polyurethane rubber, 6000 tons of other rubber and 65 million square meters of Cecep Solar Energy Co.Ltd(000591) battery back film. At the end of 2021, the company issued a plan to issue convertible corporate bonds to unspecified objects. It plans to raise no more than 850 million yuan. Except for 250 million yuan to supplement working capital, the rest of the raised funds will be used for Guangzhou Huitian communication new electronic material expansion project and 51000 tons of lithium battery electrode adhesive project. The amount of funds raised is 300 million yuan each. Guangzhou Huitian communication electronic new material expansion project is expected to be completed in the first half of 2023. After completion, the annual production capacity of silicone rubber will be increased by 21800 tons. The lithium battery electrode adhesive project with an annual output of 51000 tons will be constructed in two phases, with an annual output of 15000 tons of waterborne acrylic adhesive in the first phase and 36000 tons of waterborne acrylic adhesive in the second phase. After the project is completed, it is expected to achieve an average annual revenue of 500 million yuan and an average annual net profit of 99 million yuan. Previously, lithium battery adhesive was mainly monopolized by Japanese manufacturers. The project will help gradually realize the import substitution of lithium battery adhesive, help the company seize the air outlet of lithium battery industry and obtain market revenue in the field of lithium battery.
The ESOP enhances the cohesion of core employees and benefits the long-term development of the company: the stock size of the ESOP is about 14372900 shares, accounting for about 3.34% of the current total share capital of the company, and the stock source is the A-share common stock repurchased in the special account for share repurchase of the company. The purchase price of repurchased shares in this ESOP is 7 yuan / share, and the participants include directors, supervisors, senior managers, core technicians, core business personnel, etc. This ESOP will further establish and improve the company’s long-term incentive mechanism, improve the cohesion of employees and the competitiveness of the company, and benefit the long-term development of the company. The employee stock ownership plan takes the company’s net profit from 2022 to 2024 as the assessment standard, and the corresponding assessment target is that the company’s net profit from 2022 to 2024 will not be less than 250 million yuan, 273 million yuan and 296 million yuan respectively.
Profit forecast, valuation and rating: due to the sharp rise in raw material prices, the company’s performance in 2021 was lower than expected. At the same time, considering that the current gross profit margin of the company has not recovered significantly, we lowered the company’s profit forecast for 20222023 and added a new profit forecast for 2024. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 2.75 (down 23.8%) / 3.20 (down 24.5%) / 386 million yuan respectively. Benefiting from the policy support, the downstream demand for new energy such as photovoltaic, wind power and lithium battery is still strong. With the continuous volume of the company’s production capacity, the company’s operation will continue to develop well, and we still maintain the company’s “buy” rating.
Risk tip: the price of products and raw materials fluctuates, the capacity construction is less than expected, and the product verification risk.
