Recommended logic: 1) the leading position of the company's diffusion and brightening film is stable; 2) the forward-looking layout of the company grasps the development trend of the thinning of the display industry, the improvement of the permeability of high-end display technologies such as Mini-Led and quantum dots, and the leading technology of products such as composite films and quantum dots, which leads to the improvement of performance and profit margin. 3) relying on the coating technology for horizontal expansion, the company is currently making great progress in the photovoltaic field, the window membrane field has also taken shape, and continues to incubate and cultivate other collaborative business, which is expected to bring significant performance increment and continuous growth to the company. Build a membrane platform company.
Research and development promotes the continuous high-end of the optical film, which leads to the improvement of performance and profit margin. The company's R & D expenditure rate in 2020 is 7.4% CAGR5 personnel 19.8%. There are 145 R & D personnel in 2020, accounting for 22.2% of the total number of employees. Continuous R & D investment and strong R & D strength promote the company's products to become more and more high-end, and the moat continues to deepen.
The specific optical film business reflects: 1) the company brightens and spreads the market share of the film business in the world, and its position is stable. 2) with the thinning of the display industry and the increasing penetration of high-end display technologies such as Mini-Led and quantum dots, high-end products such as quantum dot films and composite films have a bright future, and high-tech difficulties make the product price and competition pattern good, and the profit margin is high. Relying on R & D advantages and precision coating technology, the company takes the lead in quantum dot film and composite film in China. In 2020, the company's high-end film sales were 340 million yuan, an increase of 149.7% over the same period last year. 2021H1 achieved an income of 240 million yuan, an increase of 95.5% over the same period last year. The proportion of the company's high-end products continues to increase rapidly, leading to the continuous growth of the company's optical film performance, and the profit margin is also expected to improve.
Rely on the coating technology to expand the business field horizontally and continue to grow the relay. Relying on the coating process, the company's photovoltaic and window film field has entered the harvest period. Photovoltaic field: 1) the company has mastered the photovoltaic backplane and film core materials, formula and production technology, currently mainly mass-produces double-sided fluorinated backplane TPF, KPF, and single-sided fluorinated backplane TPO, KPO, transparent backplane and other products, has completed Jingke, Longji and other major customers and mass production delivery. In 2020, the company's photovoltaic backplane film production capacity of 3000 square meters, sales of 2707 square meters, revenue of 263 million yuan, a year-on-year increase of 59.5% H1 revenue of 240 million yuan in 2021, an increase of 139.4%. 2) the company recently proposed to expand the solar packaging film production base construction project, with a total investment of 290 million yuan and a new production capacity of 9000 million square meters, the main products are POE packaging film (including EPE), all of which are expected to contribute 730 million yuan in income after delivery. Window film business plate: the company layout car clothing film, car body film and new energy vehicle windshield and side door coating pattern and other products, domestic alternative market prospect is good. 2021H1 window film revenue of 39.77 million yuan, an increase of 87.8% over the same period last year, has an embryonic form, and will continue to contribute to the increase in the future.
Profit forecast and investment advice. It is estimated that the company's net profit from 2021 to 2023 will be 1.9,3.3 and 480 million yuan respectively, with a compound growth rate of 52.5%. As a leader in domestic high-end display optical film materials, the company expands to the functional thin film platform and has a strong driving force for long-term performance growth. We give the company a valuation of 30 times in 2022 and give a "buy" rating for the first time corresponding to the target price of 42 yuan per share.
Risk hint: composite film, quantum dot film and other high-end film release is less than expected risk, photovoltaic film market expansion is not as expected risk, production capacity is not as expected risk.
