Event: the company released its quarterly report for 2022, with operating income of 250 million yuan in the reporting period, an increase of 0.34% over the same period last year, a net profit of 21 million yuan, an increase of 24.36%, and a non-return net profit of 19 million yuan, an increase of 21.78% over the same period last year.
The prosperity of thin film materials is high, and the gross profit margin continues to rise. The demand for new energy vehicles, wind power, photovoltaic and other industries is strong, and the company's BOPP capacitor film is in short supply. Driven by the rising price of raw material BOPP particles, the price of BOPP film continues to rise. 22Q1 BOPP capacitive film continues the upward trend, with a comprehensive gross profit margin of 24.42%, an increase of 2.40pp over the same period last year and an increase of 4.88pp on a month-on-month basis. The income of 22Q1 Company is basically flat, mainly due to the fact that the downstream household appliance industry of AC capacitors is greatly affected by factors such as repeated epidemic situation and tight transport capacity.
Sales and management expenses increased rapidly, while financial expenses decreased. The company's sales and management expenses were 0.12 and 19 million yuan respectively, an increase of 12.21% and 22.90% respectively over the same period last year. The rapid growth of sales and management expenses is mainly due to the following reasons: first, since the change of the actual controller, the company has implemented a more market-oriented compensation system and incentive mechanism; coupled with the substantial growth in the company's performance since 2021, the salary of sales and management staff has increased. Second, the rise in oil prices has led to an increase in logistics and transportation costs. As a result of the company's lower financing costs, resulting in a reduction in borrowing interest, financial expenses have decreased. Overall, the period expense rate of 22Q1 is 15.59%, an increase of 1.88pp over the whole of 2021.
Sufficient orders on hand, strengthen the stock of raw materials. At present, the company has plenty of orders on hand, and by the end of the first quarter of 2022, the company's contract liabilities were 13 million yuan, an increase of 21.70% over the end of 2021. Due to the tight supply of BOPP particles, the main raw material, and considering the impact of the epidemic, the company increased the stock of raw materials to 238 million yuan at the end of Q1, an increase of 14.90% over the end of 2021. Affected by this, the net operating cash flow in the first quarter was-32 million yuan. The six investment projects announced by the company in December 2020 and June 2021 progressed steadily. By the end of the first quarter, the balance of projects under construction was 47 million yuan, an increase of 30.52% over the end of 21 years.
Profit forecast and investment advice. It is estimated that the net profit of the company in 2022-2024 will be 1.06,1.78 and 238 million yuan respectively. The company's gross profit margin has increased significantly, and its profitability has continued to improve. The transformation of thin film capacitors to the field of new energy is expected to make a breakthrough. The current market capitalization of the company is 3.448 billion, corresponding to the PE of 33, 19 and 14 times respectively in 2022-2024. Maintain 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; the epidemic affects the progress of sales confirmation.
