Event: Shihua Technology released 21 mid-year report, 21H1 achieved revenue of 149 million yuan, yoy+45.43%, return net profit of 65 million yuan, yoy+122.43%, deducted non-return net profit of 48 million yuan, yoy+73.91%.
Comments: the performance of 21H1 has improved steadily, and electronic composite functional materials contribute to the main growth point. Shihua Technology released the 21 mid-year report, 21H1 achieved revenue of 149 million yuan, yoy+45.43%, return net profit of 65 million yuan, yoy+122.43%, deducted non-return net profit of 48 million yuan, yoy+73.91%.
Just look at Q2, the company generated revenue of 84 million yuan, yoy+47%,qoq+28%. The return net profit is 32 million yuan, yoy+80%,qoq-5%, deducts the non-return net profit is 27 million yuan, qoq+27%.
The decline in Q2 net profit from the previous month is mainly due to the fact that the company Q1 received a government subsidy of 8.6 million yuan. Excluding this effect, the net profit increased by 27.4% from the previous month. The gross margin of 21H1's products is 62.48%, the net profit is 43.71%, the net profit is 15.14pct, and the non-net profit is 32.47%, which is 5.32pct. The increase in gross profit margin mainly benefits from the scale effect of sales and the company's effective control of production costs. From a product point of view, 21H1's electronic composite materials / precision process materials / optoelectronic display module materials achieved sales revenue of RMB 98,460.4578max, and yoy+150.3%/-8.5%/-63.2%, accounted for 66.1% of the revenue, respectively. 30.7% of the revenue, 30.7% of the acme, 3.2% of the mae, 27.7% of gamma, 18.1% of the co., Ltd. 9.4%. 21H1 invested 14.61 million yuan in R & D, and yoy+93.93%, accounted for 9.8% of revenue.
Platform manufacturers of composite functional materials, performance deeply bound to Apple Inc, short-term optimistic about the second half of the traditional peak season + Apple Inc new machine stock increase + IPO fund-raising project capacity release pull on the company's performance. In the second half of the year, benefiting from the traditional peak season of consumer electronics, the release of Apple Inc's new products in September, and the increased demand for functional materials for Apple Inc's new machine, the company's capacity utilization is expected to remain high. The fund-raising project is progressing steadily, and 5 of the 12 planned high-precision coating lines have been arranged, of which 4 production lines are being trial-produced and put into production according to business requirements, and an OLED international high-end production line and supporting equipment are being installed and are expected to be completed by the beginning of 22. The upward prosperity of the industry provides strong support for the digestion of new capacity, and the high visibility of performance in the second half of the year is expected to accelerate growth.
In the medium and long term, we are optimistic about the performance flexibility brought about by the increase in the share of new product introduction, customer expansion and upward migration of raw materials. 1) share increase, A customer products use large scale of functional materials, large number of materials, the company's current share is low, and there is much room for improvement. 2) at the present stage, the company's performance is deeply bound to Apple Inc, and the photoelectric display module material has been successfully introduced into Samsung. Backing Apple Inc, Samsung and other high-quality customers to open the brand influence, with the later production capacity gradually put into the company's supply capacity. It is expected to further enhance the growth space through the expansion of customer + application areas. 3) the company plans to invest 260 million yuan to set up a wholly-owned subsidiary for acrylic acid series of functional polymer materials development and industrialization projects, extending to the upstream industrial chain will help the company to optimize the procurement structure of raw materials and enhance profitability.
Investment advice: with reference to the results of the semi-annual report, the 22-year net profit of 21Unix will be reduced from 2.3 PE to 2 / 289 million, corresponding to 43.7 CPG for 22 years, maintaining the "buy" rating.
Risk hints: production capacity climbing is not as expected, Apple Inc's new product sales are not as expected, new product introduction and customer expansion are not as expected.