Incident: The company released its 2021 annual report. During the reporting period, it achieved operating income of 3.620 billion yuan, an increase of 58.47% over the previous year, and the net profit of the mother was 238 million yuan, an increase of 90.24% over the previous year. The basic earnings per share were 1.68 yuan, and it is proposed to distribute 5 yuan per 10 (tax included).
The copper-clad business structure continues to be optimized, and costs are pressured in an orderly manner. The company promotes high-quality expansion of copper-coated plate production capacity, actively lays out the aluminum-plastic film business, and deepens the implementation of the “H1 (mature product line) +H2 (growth product line) +H3 (seed product line)” management strategy. Among them, the copper-clad business achieved revenue of 2,693 billion yuan, a year-on-year increase of 79.09%, a gross margin of 15.60%, a year-on-year increase of 0.12 pc. The proportion of H2 products sold in the copper-clad business increased further, and the product structure became more reasonable. In the cycle of rapid rise in raw material costs, the company improved its ability to dynamically manage orders in the copper cladding business, closely linked upstream and downstream of the industry chain, enhancing strategic customer stickiness, improving the synergy of production, procurement, sales, etc., and absorbing pressure from rising costs; in addition, high-quality production capacity growth enhanced high-grade copper coated plates Supply capacity to further enhance the company's position in the industry.
The advancement of the strategic new aluminum-plastic film business is in line with expectations. The company is steadily advancing the construction of an aluminum-plastic film project for lithium battery packaging with an annual output of 36 million square meters. All progress is in line with expectations, and is using existing production capacity to actively develop market layout, achieve large-scale sales in consumer electronics, light power and other fields, and carry out testing and product development cooperation with some power battery manufacturers. While vigorously promoting project construction and expanding production capacity at a high level, the aluminum-plastic film business continues to increase R&D investment and process optimization, and promote the localization of core raw materials. A variety of products have achieved diversified selection of raw materials.
Investment advice: We predict that the company's net profit for 2022-2024 will be 334, 439, and 529 million yuan, and EPS of 2.36, 3.09 and 3.73 yuan. The current stock price corresponds to 11, 9, and 7x PE, maintaining the company's “buy” rating.
Risk warning: High-frequency high-speed copper-clad plate production expansion falls short of expectations; downstream customer verification falls short of expectations; risk of supply chain tightening.
