\u3000\u3 Shengda Resources Co.Ltd(000603) 806 Hangzhou First Applied Material Co.Ltd(603806) )
Performance summary: in the first quarter of 2022, the company achieved a revenue of 3.884 billion yuan, a year-on-year increase of 38.02%; The net profit attributable to the parent company was 339 million yuan, a year-on-year decrease of 31.51%; The non net profit deducted was 315 million yuan, a year-on-year decrease of 35.02%; EPS0. 36 yuan.
Affected by the rising price of raw materials, profitability is under pressure. At the end of 2021, the company's photovoltaic adhesive film production capacity was about 1.4 billion square meters, and the shipping capacity was greatly improved. In 22q1, due to the improvement of downstream module production, the sales volume of photovoltaic adhesive film of the company was nearly 300 million square meters, with a year-on-year increase of about 26%. However, affected by the high price of raw material inventory in 21q4, the company's profit decreased; Moreover, the provision of 65 million yuan of credit impairment loss further affected the profit. Overall, the company's 22q1 comprehensive gross profit margin was 16.37%, down 13.6pp month on month; The net interest rate was 8.74%, down 13.2pp month on month.
The turning point of profit has been found, and there is strong certainty of repair in the second quarter. At the end of the first quarter, the company timely adjusted the product price. In April, due to the continuous rise in the price of raw material EVA particles, the company raised the adhesive film price again. Therefore, the average delivery price of adhesive film in the second quarter is expected to increase significantly month on month, and the profit of photovoltaic adhesive film is expected to repair upward. At the same time, the shipment volume also increased with the improvement of downstream production scheduling month on month. On the whole, the volume will rise in the second quarter.
The profit of photosensitive dry film increased and the expansion of production continued to advance. The company's new photosensitive dry film business has entered the performance release period, and the shipment in the first quarter is expected to be more than 20 million square meters. Moreover, due to the scale effect, the profitability has improved compared with 2021. The company continued to promote the expansion of photovoltaic adhesive film and electronic material projects. In April 22, the company announced the addition of 250 million flat photovoltaic adhesive film expansion projects to provide supporting packaging material solutions for current n-type modules such as TOPCON, hjt and IBC; Add 100 million square meters of high-resolution photosensitive dry film project, and the annual production capacity of the company's photosensitive dry film will exceed 800 million square meters after it is put into operation; Increase the production capacity of synthetic resin and additives as raw materials of photosensitive dry film to 614500 tons. In May 21, the company plans to invest in 24000 tons of alkali soluble resin project. At present, the planned production capacity is increased to 614500 tons to fully ensure the supply capacity of raw materials; The flexible copper clad laminate project is adjusted to 5 million square meters. The company continues to expand its production in terms of photovoltaic adhesive film and photosensitive dry film, and the leading position of photovoltaic adhesive film is expected to be maintained. At the same time, the second growth curve of photosensitive dry film business is highlighted.
Profit forecast and investment suggestions: the company's photovoltaic film production capacity has expanded steadily to ensure future shipments. The electronic material business has entered a rapid and large-scale stage, becoming a new point of the company's performance. We expect that the net profit attributable to the parent company will maintain a compound growth rate of 22.93% in the next three years and maintain the "hold" rating.
Risk warning: the risk that the global PV installation is less than expected; The risk that the company's capacity investment and construction is less than expected; The risk of rising raw material costs and declining profitability of the company; Risks of policy changes.
