Events:
On October 28, 2021, the company released its quarterly report for the third quarter of 2021: net profit attributed to the owner of the parent company in the first three quarters was 270 million yuan, an increase of 59.34% over the same period last year; operating income was 1.887 billion yuan, up 40.34% over the same period last year; and basic earnings per share was 0.53 yuan, an increase of 60.61% over the same period last year.
Main points of investment:
The profit continues to reach a new high, and the control of the three fees is excellent.
2021Q3 achieved revenue of 684 million yuan, + 32.81% year-on-year, 6.98% month-on-month; net profit of 102 million yuan, + 75.52% year-on-year, and + 2.61% month-on-month, another record profit for a single quarter. The company's gross margin / net profit rate / expense rate is 39.03%, 15.54%, 22.61%, 0.89 pct,-1.00, 0.88, 0.89, 3.20, 3.80 pct, respectively. In terms of expense rate, the company's Q3 sales / management / financial rates are 5.15%, 13.63% and 2.94%, respectively, compared with Q2 + 0.65 pct in 21 years.
The leading position is stable, and many plates work together.
As a leading enterprise of electronic chemicals, by the end of 2020, the company's UV curing business has an annual production line of 10,000 tons of UV curing optical fiber coating materials; the output of mixed crystals in liquid crystal display plate reached 123 tons in 2020, and the production capacity of single liquid crystal reached 80 tons per year. The self-sufficiency rate of single crystal reached 50.44% in that year, and the self-sufficiency rate was relatively high. The production capacity of wet process chemicals, epoxy plastic sealing materials and tin balls are 3000 tons / year, 12000 tons / year and 450 tons / year respectively. The company is in a leading position in many plates, and it is expected that many plates will make concerted efforts in the future.
Continue to promote customer certification and new project construction
According to the company's semi-annual report, the company's 5000t/aTFT-LCD photoresist project provides stable supply to customers, the production capacity of 5500t/a synthetic new materials project and 100t/a high-performance optoelectronic new material purification project is steadily increasing, and the testing capacity and production line construction of OLED materials are also advancing in an orderly manner.
We are optimistic that the above projects will promote the new growth of the company in the future.
Profit forecast and investment rating: the company's net profit in 2023 is expected to be RMB 363,000,000, corresponding to the PE of 24-18-15, which is covered for the first time and given a "buy" rating.
Risk tips: new projects are not as expected, technical iterations, trade barriers, etc.