Brief comment on performance
According to the announcement on the evening of December 1, according to the company's strategic planning and business development requirements, in order to promote and expand the business of transportation and logistics composite materials, the company plans to set up a wholly-owned subsidiary Zhejiang Huaju Composite Materials Co., Ltd. with a registered capital of 30 million yuan.
Business analysis
Asset integration is conducive to business development. The composite material used in the company's transportation and logistics mainly refers to the thermoplastic honeycomb material, which is a new type of car body material, which is used to replace traditional materials such as steel plate and plywood. In the past, the company's production capacity of composite materials for transportation and logistics was mainly distributed in Hangzhou Huaju (company headquarters), Yangzhou McStone and Zhongji Automobile, which is relatively scattered. Now the company has set up a wholly-owned subsidiary in Qingshan Lake, Zhejiang Huaju, which is expected to integrate production capacity, which is conducive to management and control and future development.
Multi-material layout, the platform is gradually formed. The company's business is divided into five parts, namely, copper clad laminate, thermal conductive materials, composite materials for transportation and logistics, insulating materials, aluminum-plastic films, which are all based on the formulation capacity of composite materials, thin layer technology and other basic technology. in the layout for many years, the company has gradually formed a diversified material platform. According to the company's future development plan, we think that the company has different strategic ideas in different products. Copper clad laminate and aluminum-plastic film are dominated by high-end breakthroughs, while thermal conductive materials and composite materials for transportation and logistics are mainly used to expand their share. insulating materials are mainly reserved resources by cooperating with high-quality customers. based on this, the company's multi-type business and multi-level layout is clear, and the future space extensibility is worth looking forward to.
High-end CCL continues to break through, plus aluminum plastic film to open space. In recent years, the company has focused on the research and development of high-end copper clad laminate products (high frequency\ high speed\ HDI\ class BT, etc.), key customer certification and batch work have been carried out in an orderly manner (high frequency materials have been supplied in large quantities by large customers), and production expansion planning is progressing smoothly (Qingshan Lake II 450,000 sheets / month will be put into production in July, Zhuhai 2 million sheets / month is under construction). In addition to copper clad laminate, the company is also increasing the strength of aluminum plastic film for new energy vehicles, not only with equipment imported from Japan, Japanese technology, and the layout of dry and thermal production lines. at the same time, 140 million yuan was invested in the construction of the "high-performance aluminum-plastic film project with an annual production capacity of 36 million square meters for lithium battery packaging" (the existing production capacity is about 5 million square meters per year, and the production capacity is expanded by 7.2 times). There will also be great prospects in the new energy vehicle plate in the future.
Investment suggestion
We expect the company's net profit from 2021 to 2023 to be 266 million yuan, 355 million yuan and 509 million yuan, with corresponding valuations of 23 times, 17 times and 12 times, and continue to maintain the "buy" rating.
Risk hint
Product prices decline; production capacity is not as expected; competition intensifies; the risk of lifting the ban on restricted shares.