\u3000\u3000 Hubei Dinglong Co.Ltd(300054) (300054)
Event: Hubei Dinglong Co.Ltd(300054) release 2021 annual performance forecast
The company expects to realize the net profit attributable to the parent company of 208-238 million yuan and deduct the non net profit of 190-220 million yuan during the reporting period, making a significant turnaround year-on-year.
The polishing pad business made a substantial profit for the first time. In 2021, the revenue level of the company’s polishing pad business continued to grow. We expect that the annual operating revenue of the polishing pad business will exceed 300 million yuan, the annual sales volume will exceed 100000 pieces, and the gross profit margin in the fourth quarter will continue to the high level of the first three quarters. In terms of Chinese customers, the products have been steadily sold in a large number of clients, and the first mover advantage has established the company’s market share in the field of CMP polishing pads in China; In terms of foreign customers, the company’s products received overseas orders for the first time in December. The recognition of overseas customers shows that the quality of the company’s products has reached the international leading level. The company is the only CMP polishing pad supplier in China who has fully mastered the core R & D and manufacturing technology of the whole process of polishing pad. In terms of product models, the company’s polishing pad products basically realize the complete coverage of mature process models. The goal of the next stage is to complete the localization substitution of all models from mature process to advanced process.
2022 may become the first year of high-volume photoelectric panel materials. We expect the company’s annual operating revenue of YPI products to exceed 10 million yuan. PI (polyimide) slurry is the key supporting material for OLED to realize flexible display. The company is the first enterprise in China to realize the mass production of PI slurry for flexible OLED display substrate material. In terms of product verification, the verification of G6 line of main customers has been basically completed and entered the stage of mass production; In terms of new product research and development, PSPI and ink products have entered the pilot stage, and new material products in other panel industries are under research and development.
The profit of printing and copying general consumables business increased significantly year-on-year. We expect that the printing and copying general consumables business will realize a net profit attributable to the parent company of nearly 90 million yuan in the whole year. Printing and copying general consumables are the traditional advantageous business field of the company. In the field of color toner, the company’s products have absolute advantages; In the field of recycled ink cartridges, the company is in a leading position in the world.
Investment advice
It is estimated that the company’s revenue from 2021 to 2023 will be 2.308/3.592/5.768 billion yuan respectively, with a year-on-year increase of 27.05% / 55.63% / 60.57%, and the net profit will be 2.23/3.88/665 billion yuan respectively, with a year-on-year increase of 239.73% / 73.75% / 71.29%. The closing price of 20220125 corresponds to 53.4 times of PE in 2022. Considering that the company is “positioned to solve the problem of import substitution of photoelectric semiconductor materials and promote the process of material localization”, it will benefit from import substitution and have large growth space in the future. It will be rated as “buy” for the first time.
Risk tips
New product development was less than expected.
