\u3000\u3 Guocheng Mining Co.Ltd(000688) Dark Horse Technology Group Co.Ltd(300688) 300)
Event: on March 31, the company released the annual report of 2021. The company achieved an operating income of 625 million yuan, a year-on-year increase of 54.55%; The net profit attributable to the parent company was 173 million yuan, a year-on-year increase of 55.85%; The net profit deducted from non parent company was 156 million yuan, with a year-on-year increase of 68.85%.
The net interest rate hit a record high, and the production and sales of core products were booming. The company achieved an operating income of 625 million yuan, a year-on-year increase of 54.55%; The net profit attributable to the parent company was 173 million yuan, a year-on-year increase of 55.85%, the gross profit margin of sales was 42.46%, a year-on-year decrease of 0.38 PCT, the net profit margin of sales was 27.67%, a year-on-year increase of 0.23 PCT, and the net profit margin reached a record high. The company’s spherical silicon micro powder, crystalline silicon micro powder and molten silicon micro powder achieved revenue of 300 million yuan, 75 million yuan and 181 million yuan respectively, with a year-on-year increase of 107.37%, 21.86% and 17.00%, gross profit margin of 41.33%, 28.44% and 46.21% respectively, and the output was 22400 tons, 37100 tons and 37900 tons respectively, of which the output of spherical silicon micro powder almost doubled, with a year-on-year increase of 99.83%. The production and sales of spheroidal silicon and spheroidal aluminum products that meet the needs of high-end chip packaging are booming, and the release of production capacity promotes the upward performance of the company.
The raised investment projects were released steadily, and the subsidiary expanded the production capacity of 15000 tons of high-end spherical powder. In 2021, the production capacity of the company’s raised investment projects will be further released, and the utilization rate of production capacity will be gradually improved. Among them, the electronic grade new functional material project of the wholly-owned subsidiary was successfully put into trial operation in the fourth quarter of 2021. In addition, in order to meet the needs of customers in the fields of advanced packaging, high-frequency and high-speed circuit substrates and improve the capacity layout of spherical silicon and spherical aluminum products, the company invested 300 million yuan to a wholly-owned subsidiary to build a spherical powder production line with an annual output of 15000 tons for high-end chip packaging, which is expected to contribute profits in the fourth quarter of 2022.
R & D investment has increased year by year, and technical advantages have promoted the increase of orders. In 2021, the company’s cumulative R & D investment reached 350562 million yuan, a year-on-year increase of 77.19%, and R & D investment accounted for 5.61% of revenue. The company continues to focus on the research and development of advanced chip packaging, a new generation of high-frequency and high-speed copper clad laminate, new energy vehicle power cell modules and photovoltaic cell adhesives, which are applied to submicron spherical silicon products of advanced packaging and underfill materials, and low-cost storage chip packaging α Micron and submicron spherical silicon powder, spherical silicon powder applied to ultralowdf (ultra-low dielectric loss) circuit substrate and other high-end application series products have passed the certification of customers at home and abroad and shipped in batches, and customer orders have increased rapidly.
Investment suggestion: it is estimated that the company’s earnings per share from 2022 to 2024 will be 2.70 yuan, 3.62 yuan and 4.61 yuan respectively, and the corresponding PE will be 23, 17 and 13 times respectively. With the continuous release of expanded production capacity, we believe that the company’s profitability is expected to continue to improve and maintain the “buy” rating.
Risk warning: the project is put into operation less than expected, the downstream demand is less than expected, and the product price fluctuation risk.
