Core ideas:
Glinda released its 21 annual report, and the results were in line with expectations. In 2021, the company achieved revenue of 780 million yuan, + 33.60% year-on-year, and net profit of 141 million yuan, + 39.37% compared with the same period last year. In a single quarter, 21Q4 achieved revenue of 247 million yuan, + 53.93% year-on-year, + 23.78% month-on-month, and net profit of 39.29 million yuan, + 102.29% and + 1.60%, respectively.
Booming production and sales promote the performance upward, and the product application field continues to upgrade. In 21 years, the production and sales of wet electronic chemicals were 91200 tons and 93200 tons respectively, which were + 26.48% and + 28.61% respectively compared with the same period last year. The company's TMAH developer is mainly used in the display panel field. In 2021, the company began to focus on the semiconductor IC field breakthrough, the company has further enriched the patent layout, has completed one invention patent and two practical patent authorization, the developer has passed the semiconductor target manufacturer laboratory sample evaluation, and passed the brand IC customer on-site audit.
Raw material prices continue to fall, profitability is expected to improve. Since the beginning of this year, the prices of the company's main raw materials DMC and trimethylamine have continued to decline. As of April 21, according to wind data, the ex-factory price of Shi Da Shenghua DMC is about 5400 yuan / ton, down 50% from the year's high. According to the prospectus, according to the company's 2019 caliber, for every 10% increase in the average purchase price of DMC and trimethylamine, the company's comprehensive gross profit margin fell by 1.55% and 1.23%, respectively. Assuming that the unit price of the company's products is stable, profitability is expected to continue to improve in the event of a decline in raw material prices.
Sichuan fund-raising projects have been put into production, and the product matrix continues to be rich. Sichuan 100kt/an Electronic Materials Project (Phase I) is expected to be completed in June 2022, including 40,000 tons of TMAH developer, 15,000 tons / year of BOE etching solution and 5000 tons / year of aluminum etching solution. At the same time, Hangzhou Phase II 16000 tons of TMAH developer is expected to be put into production in the third quarter. The company is expected to be based on TMAH developer, horizontally expand the function of wet electronic chemicals, enrich the product matrix, and create new profit growth points.
Profit forecast and investment advice. It is estimated that the company's EPS in 22-23 will be 1.46 yuan per share, respectively. With reference to the comparable company's 2022 PE valuation, it will give the 2022 results 30 times the PE valuation level, corresponding to a reasonable value of 43.92 yuan per share, maintaining the "buy" rating.
Risk hint. The fund-raising projects are not as expected; the prices of raw materials have increased significantly; and customers have concentrated risks.