\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 81 Puyang Huicheng Electronic Material Co.Ltd(300481) )
In 2022q1, the net profit attributable to the parent company increased by 78.40%, and its value may be underestimated, maintaining the “buy” rating
On April 28, the company released the first quarterly report of 2022. During the reporting period, the company achieved a revenue of 376 million yuan, a year-on-year increase of 31.72%; The net profit attributable to the parent company was 83.883 million yuan, a year-on-year increase of 78.40%. The company’s performance growth reached the upper limit of the performance pre disclosure range. We maintain the company’s profit forecast unchanged. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 330 million, RMB 415 million and RMB 616 million respectively, and the corresponding EPS will be RMB 111, RMB 140 and RMB 2.08 per share respectively. The current share price will be 18.8, 14.9 and 10.1 times of PE from 2022 to 2024 respectively. With the positioning of “leading technology, cost advantage and continuous optimization and extension of product line”, the company has strong certainty of long-term sustainable growth and maintains the “buy” rating.
Maleic anhydride derivative products are in short supply, and the profitability of the company continues to improve
The company’s main product maleic anhydride derivatives are widely used in the fields of electrical equipment insulation materials, coatings, composite materials, electronic component packaging materials, etc. the downstream high boom continues to drive the company’s demand for maleic anhydride derivatives. In 2021, the production and sales of maleic anhydride derivatives of the company were 63500 tons and 63600 tons respectively, and the capacity utilization rate was as high as 124.55%. The products were in short supply and the orders on hand were full. In 2022q1, the gross profit margin of the company increased to 35.21%, with a year-on-year and month on month increase of 7.79 and 4.20 PCTs respectively; The net interest rate increased to 22.32%, with a year-on-year and month on month increase of 6.02 and 4.40 PCTs respectively. In 2021, the company achieved a revenue of 201 million yuan, an increase of 124.28% in the intermediate business of functional materials. Its “functional material project with an annual output of 20000 tons” has been put into operation in 2021 and is expected to contribute most of its profits in 2022. As of 2022q1, the company’s construction in progress and R & D expenses have increased by 282.67% and 63.53% respectively. The rapid promotion of R & D and projects under construction has brought long-term growth to the company. In addition, during the reporting period, the company’s sales expenses and management expenses increased by 38.05% and 30.05% respectively, which was caused by the increase of equity incentive expenses.
The production capacity of the company’s main products will be doubled and expanded, with support for long-term growth
According to the company’s 2021 annual report, the design capacity of the company’s main product CIS anhydride derivatives is 51000 tons, and the capacity under construction is 70000 tons, including the expansion project of methyl tetrahydrophthalic anhydride with an annual output of 20000 tons, Gulei base and other projects. In addition, the company’s functional materials and other projects are under construction. The continuous launch of the company’s new production capacity is expected to continuously optimize the product structure and enrich the product line, providing strong support for the company’s long-term growth.
Risk tip: the production capacity construction progress is less than expected, the downstream application demand is less than expected, and the price of raw materials fluctuates
