The company issues 21 annual report and 22-year first-quarter performance forecast. 1) the company's 21-year income was 1.283 billion yuan, an increase of 42.96% over the same period last year, and the non-net profit deducted from the mother was 155 million yuan, an increase of 53.96% over the same period last year. The revenue in the fourth quarter alone was 453 million yuan, an increase of 127.71% over the same period last year, and the non-net profit deducted by the mother was 85 million yuan, an increase of 392.09% over the same period last year. 2) in terms of product gross profit margin, the 21-year gross profit margin of silane coupling agent and gaseous silica changed by 2.07% and-1.69% to 28.32% and 17.19%, respectively. 3) the proportion of R & D expenditure in revenue in 21 years was 3.43%, an increase of 0.60% over the same period last year, mainly due to the need to increase R & D investment in the development of enterprises. 4) in the first quarter of 22, the company is expected to achieve a non-net profit of RMB 1.15-122 million, which will increase by RMB 0.99-106 million compared with the same period last year, an increase of 624.39%, 668.68% and 35.06%, respectively, compared with the same period last year.

The company is rich in production capacity and is optimistic about future growth. 1) the first phase of the company's phenyl and octyl silane project in 2021 has successfully achieved mass production and started external sales; 2) the company's 40,000 tons of silicon-based new materials green recycling industry chain project (20,000 tons of nano-silica and 20,000 tons of high temperature silicone rubber), 30,000 tons of special silicone new materials project, 9000 tons of new silicone material project is scheduled to be put into production in the second half of 2022. 3) the company's second set of 50,000-ton trichlorosilicon production capacity plant has further optimized and upgraded the technical process on the basis of the first set of equipment, through a special impurity removal device to remove boron, phosphorus, carbon and other impurities in trichlorosilicon, in order to meet the requirements of the photovoltaic industry for trichlorosilicon, and to achieve the external sales of photovoltaic grade trichlorosilicon, which is scheduled to be put into production in the third quarter of 2022. At that time, the company will have a production capacity of 100,000 tons of trichlorosilicon per year, which can fully protect the demand for trichlorosilicon raw materials in the company's new projects. 4) the company decided to invest 1.2 billion yuan in 2022 to build a new functional material project with a total production capacity of 114000 tons and supporting 50, 000 tons / year trichlorosilicon production plant, which will be built in two phases and the construction period is expected to be 3 years.

The company has advanced production technology, has a complete green recycling industry chain, and has significant product advantages. 1) the company has a single set of 50,000-ton trichlorosilicon production capacity device, which makes a technical innovation to the existing trichlorosilicon production process. Compared with the traditional process, the production process adopted by this production device can achieve continuous and automatic production, greatly improve production efficiency and product acceptance, so as to ensure the stability of product quality. 2) the company has the largest production line of sulfur-containing silane (including solid silane) in the world, and through the extension of the industrial chain, a complete green cycle industrial chain of "silicon block-chlorosilane-intermediate-functional silane-gaseous silica" has been built.

Profit forecast and investment evaluation. We estimate that the net return profit of Hongbai new wood in 22-24 is 4.49,5.99 and 728 million yuan, and the corresponding EPS is 1.35,1.81 and 2.19 yuan respectively. On the whole, we give Hongbai new materials in 2022 14-16 times PE valuation range, the corresponding reasonable value range is 18.90-21.60 yuan. For the first time, it is given an investment rating of "better than the market".

Risk hint. The progress in the construction of production capacity is not as expected; the macroeconomic downturn; product prices fluctuate greatly.