Main points of investment
Event: the company released its annual report for 2021, with an annual operating income of 1 billion yuan in 2021, an increase of 18.06% over the same period last year, a net profit of 51 million yuan, an increase of 542.99%, and a net profit of 45 million yuan, an increase of 376.38% over the same period last year.
The results compound in line with expectations, and Q4 made a record profit in a single quarter. Q4 achieved a net profit of 17.62 million yuan, a record high for a single quarter. Q4 deducts the non-return net profit of 12.96 million yuan, and the non-recurrent profit and loss is mainly government subsidy. The total amount of Q4 asset impairment and credit impairment is 2.56 million yuan, and the net non-operating income and expenditure is-3.83 million yuan. Deducting non-operating factors such as impairment and non-operating income and expenditure, deducting non-return net profit also has a good performance.
Film price increase profit repair, capacitor operation is sound. The company's electronic-grade thin film materials business achieved an operating income of 415 million yuan, an increase of 33.47% over the same period last year, and a gross profit margin of 25.10%, an increase of 10.52pp over the same period last year. Sales of electronic-grade thin film materials were 17400 tons, an increase of 7.10% over the same period last year. Benefit from rising film prices, a substantial increase in revenue, a significant improvement in profitability. The capacitor business achieved an operating income of 398 million yuan, an increase of 8.69% over the same period last year, and a gross profit margin of 20.60%, an increase of 0.16pp over the same period last year. The capacitor business is sound, and the level of gross profit margin is relatively stable.
The new project is progressing steadily and is expected to contribute revenue one after another in the second half of the year. The six investment projects announced by the company in December 2020 and June 2021 are making steady progress. Among them, the new energy ultra-thin film material project has completed the filing and energy evaluation, the main equipment of the first film line of the project is expected to be delivered by the end of 2022, and the main equipment of the second film line has been signed. The filing of the new energy vehicle capacitor project, the safety and environmental assessment, and the renovation of the factory building are in progress. The construction of the first phase of the new energy capacitor expansion project has been completed, and the second phase of equipment is being selected. DC power grid transmission capacitor project has been completed for the record, the main equipment is being selected, and the factory building is under design and decoration. The company's new project construction is carried out in an orderly manner, and it is expected to contribute revenue increment in the second half of the year.
The salary of employees increases synchronously, which fully stimulates the vitality of the company. Since the change of the actual controller, the company has implemented a more market-oriented salary system and incentive mechanism. The salary of senior executives and employees in 2021 is much higher than that in 2020, and the production and operation is also closer to the market, which is conducive to fully stimulate the vitality of management and grass-roots employees.
Profit forecast and investment advice. It is estimated that the company's net profit from 2022 to 2024 will be 103 million, 175 million and 232 million respectively. The price increase of BOPP film contributes to the flexibility of performance this year, and the volume and price of the new line will rise next year. In the medium to long term, thin film capacitors have made a comprehensive transformation to the field of new energy, with improved income and profitability, opening the ceiling of valuation. The company currently has a market capitalization of 4.2 billion and maintains a "buy" rating.
Risk tips: film prices rise less than expected; raw material prices rise; new project production schedule lags behind; customer expansion falls short of expectations.