Return to growth in 21 years, maintain "overweight" rating
Feikai material released its annual report on March 30, with revenue of 2.63 billion in 21 years, an increase of 40.9% over the same period last year, and a net profit of 390 million, an increase of 67.9% over the same period last year. According to the total share capital of 529 million shares, the corresponding EPS is 0.73 yuan, which is basically in line with our expectations (EPS 0.72 yuan). Q4 achieved revenue of 740 million, an increase of 42.5% over the same period last year, and a net profit of 120 million, an increase of 92.0% over the same period last year. The company ploughed screen materials, semiconductor materials and other domestic alternative key areas, the rapid release of pharmaceutical intermediates, we raised the company's EPS forecast for 2022-2023 to 1.01max 1.09 yuan (the previous value is 0.85 pound 1.03 yuan), introduced a 24-year profit forecast of 1.17 yuan, combined with comparable company valuation (2022 Wind consensus expected average of 27 times PE), considering the company's pharmaceutical intermediate business growth rate is faster. Give the company 32 times PE in 2022, corresponding to the target price of 32.30 yuan (the previous value is 32.30 yuan, based on 38 times PE in 22 years), and maintain the "overweight" rating.
The category of screen display materials and light-curing materials has expanded. According to the announcement of the company, the company's income of screen display materials reached 1.3 billion yuan in 21 years, an increase of 42.3% over the same period last year. The sales of liquid crystal materials and positive photoresist for screen display increased rapidly, negative photoresist achieved mass production, and category expansion accelerated. In 21 years, the income of semiconductor materials reached 550 million yuan, an increase of 35.2% over the same period last year. Stimulated by the strong downstream demand and domestic substitution, the company released wet electronic chemicals, epoxy plastic sealants and other materials rapidly; shipments of UV-curable optical fiber coatings resumed growth, with an income of 500 million yuan in 21 years, an increase of 24.9% over the same period last year.
In the field of pharmaceutical intermediates, the company's main products are used in antiviral drugs, antibiotics and cardio-cerebrovascular fields. 21H2 sales have increased significantly, and revenue from related sectors has increased by 276 million, an increase of 93.9% over the same period last year.
22Q1 performance continued to increase year-on-year. Pharmaceutical Intermediates Rapid Volume Company issued a 22Q1 performance forecast on the same day, which is expected to achieve a net profit of 1.2-140 million yuan, an increase of 106.7% and 139.8% over the same period last year. According to the company announcement, due to the good market environment in the industry, the company's main product sales have increased to a certain extent, including pharmaceutical intermediate products due to the substantial increase in downstream customer demand, the related business income has increased significantly; the screen shows that the production capacity of old products has been put into operation, the volume of new products has broken through, and the revenue of the plate has grown rapidly; semiconductor materials have maintained a good growth rate driven by the increase in downstream demand.
The project of raising convertible bonds has been steadily advanced, and the product structure has been continuously enriched.
According to the company announcement, 5000 tons / year TFT-LCD photoresist project has been steadily supplied to customers, 5500 tons / year synthetic new materials project and 5500 tons / year high-performance optoelectronic new material purification project production capacity is steadily increasing, integrated circuit packaging material base project part of the production line has been put into production. At the same time, the company can raise convertible bonds to invest 10, 000 tons / year ultraviolet curing optical fiber coating material expansion project, 120 tons / year TFT-LCD mixed liquid crystal display material project, 150 tons / year TFT-LCD synthetic liquid crystal display material project and 15 tons / year OLED terminal display material sublimation purification project are making steady progress. With the continuous improvement of the company's product structure, pharmaceutical intermediates, semiconductor materials, display materials and coatings bloom in the future, driving the continuous growth of performance.
Risk tips: core technology leakage risk, semiconductor material income growth rate is lower than the expected risk, pharmaceutical intermediate income fluctuation risk.