What happened: the company released its third quarterly report for 2021. 2021Q1-Q3 achieved revenue of 532 million yuan, + 25.88% year-on-year, and net profit of 101 million yuan, + 24.36% compared with the same period last year. In a single quarter, 21Q3 achieved revenue of 200 million yuan, + 25.75% year-on-year, + 24.25% month-on-month, and net profit of 38.67 million yuan, + 30.36% and + 23.43%, respectively.
Sales volume increased significantly month-on-month, and fluctuations in raw material prices affected profits. The production and sales of 2021Q3's main function wet electronic chemicals are 23000 tons and 25900 tons respectively, with a month-on-month ratio of + 2.99% and + 23.62%. The selling price is 7.34 yuan / kg, which is the same as the previous month. The company's 2021Q3 gross profit margin was 26.54%, with a month-on-month decline of 2.32pct, mainly due to repeated fluctuations in raw material prices. according to wind data, the average price of dimethyl carbonate in the first three quarters of 21 years was 7897 (Q1), 6600 (Q2) and 9869 (Q3) yuan per ton, respectively. With Hualu Hengsheng and other manufacturers DMC production capacity have been put into operation, it is expected that the future DMC prices are expected to decline.
The verification test is going smoothly and the product matrix continues to be rich. In the IC field, the company's developer has passed the semiconductor target manufacturer's laboratory sample evaluation and passed the brand IC customer on-site audit; in the panel field, the company's stripping solution has completed the pre-introduction laboratory test and on-site audit of the domestic flexible OLED brand factory, and entered its supply system, and has passed the first stage production line test. BOE etching solution has completed the introduction test and verification of OLED panel clients such as Chongqing BOE and Hefei Vishino Technology, and passed the Tianma Microelectronics project and verification to complete the production line test.
In the construction of production capacity gradually released. The Sichuan Glinda 100kt/an electronic materials project raised by the company has completed the project design as planned and is currently in the stage of stepping up construction. The acquisition and installation of infrastructure and major equipment are expected to be completed in the second half of 2021.
Profit forecast and investment advice. It is estimated that the company's EPS in 21-23 will be 1.02 euro 1.49 yen per share, respectively. With reference to the comparable company's average PE valuation in 2022, it will give the 2022 results 30 times the PE valuation level, corresponding to a reasonable value of 44.60 yuan per share, maintaining the "buy" rating.
Risk hint. Customers concentrate risk; fundraising project is less than expected risk; ownership structure risk; raw material price increases significantly.
