The company released the 2021 report and the 202201 quarter award, and the efficiency advantage of the new factory was highlighted. The annual report of the company holding a "buy" rating achieved an operating income of 4.21 billion yuan, YoY+98.4%, 's net profit was 400 million yuan, and YoY+194.2%, deducted a non-home net profit of 360 million yuan. At the same time, the company announced 2022Q1 quarterly report, achieving operating income of 950 million yuan, YoY+14.3%, return net profit of 71.003 million yuan, YoY-8.0%. Taking into account the decline in the price of copper clad laminate, we lowered our previous profit forecast and increased our profit forecast for 2024. It is estimated that the company's net profit from 2022 to 2024 will be 4.4x5.6 (the former value is 4.9max 6.3) / 720 million yuan, and the EPS will be 1.87pm 2.39 (the former value is 2.11max 2.68) / 3.05yuan. The current stock price corresponds to 15.2 PE in 2022-2024. The company's production expansion and product upgrading support steady growth, high-speed copper clad laminate has made a breakthrough, the construction of the new plant is conducive to the improvement of operational efficiency, the reduction of manufacturing costs, and the maintenance of "buy" rating.
2022Q1 clad steel prices continue to decline, looking forward to the whole year of 2022 to adjust the product structure, the company's fine laminate business to achieve substantial expansion in 2021, rising raw materials and industry boom double push copper clad laminate products prices and increase profits. The commissioning of Jiangxi N4 plant has promoted the company to sell 22.757 million pieces of copper clad laminate in 2021, the average unit price of YoY+37.2%, clad steel plate is 144.9 yuan / sheet, the gross profit of YoY+44.1%, sheet is 33 yuan / sheet, the average unit price of bonded sheet is 15.8 yuan / m, and the gross profit of YoY+22.5%, per meter is 12 yuan. Affected by the reduction in the price of the covered feed board, the company's 2022Q1 gross profit margin was 14.6%, down 1.7pct from 16.3% in 202104. Looking forward to the whole year of 2022, the company will mainly adjust the product structure, and the high-speed copper clad laminate will be boosted by orders for base stations and servers, and the proportion for the whole year is expected to rise: the absolute value of automotive products is growing rapidly.
Efficiency advantages and technical capabilities are the next stage. The company has passed the high price of FR-4-based products that optimize production costs and product mix. In the medium and long term, it should still focus on the efficiency advantages and high-end product capabilities of various manufacturers. The company's Jiangxi N6 plant continues to expand, which is expected to push costs down. In addition, the company actively reserves high-end copper clad laminate products, and the R & D expense rate for the whole year of 2021 is 5.2% 0.37pct. Domestic replacement of CCL has entered a new stage, the company has selected generations to upgrade its own technology, and gradually formed a series of core formulation technologies, such as lead-free, halogen-free, high-frequency and high-speed, vehicle, high thermal conductivity, IC packaging, etc., which is expected to benefit from the development of the industry.
Risk hints: weaker downstream demand leads to lower-than-expected production expansion, lower CCL prices lead to damage to profitability, upstream raw material prices erode costs, and competition in high-speed clad steel industry increases.