Event: The company released performance reports for 2021 and the first quarter of 2022. In 2021, the company achieved revenue of 1,289 million yuan, an increase of 40.33% over the previous year, net profit of 123 million yuan, an increase of 16.53% over the previous year; deducted non-net profit of 94 million yuan, an increase of 32.03% over the previous year. In the first quarter of 2022, the company achieved revenue of 383 million yuan, an increase of 40.45% over the previous year, net profit of 33 million yuan, an increase of 34.27% over the previous year, after deducting non-net profit of 32 million yuan, an increase of 104.04% over the previous year.
The advantages of BO backplanes are obvious. Supply is in short supply, and backplane production will double. The main reason for the company's growth is the rapid development of the company's photovoltaic business. In 2021, the company sold a total of 88.64 million square meters of backboards and achieved operating revenue of 1.05 billion yuan, an increase of 26% over the previous year. The company's top five customers shipped 64.19 million square meters, accounting for 78% of total shipments. The concentration of orders from high-quality customers is high. Among them, BO backplates sold 32.64 million square meters, an increase of 187% over the previous year. This year, the company will actively expand sales of its own BO backboard. While maintaining the continuous growth of white BO backboard sales, it developed a black BO backboard to be put on the market, which was approved by strategic customers Longji Co., Ltd. and Jingao Technology and placed orders in batches. It is expected that BO backboards will account for 60%. The company currently has a backboard production capacity of 114 million square meters, which is already full. It is expected that it will add 100 million square meters of production capacity in the future. Production will be successfully digested, production will double. The additional production capacity has already been purchased for land and plants. Production is expanding rapidly. It is expected that production will be put into operation one after another this year.
With the rapid development of aluminum-plastic film, production capacity will increase tenfold. In 2021, the company completed storage of 6.2967 million square meters of aluminum-plastic film and sold 5,875,600 square meters. Sales increased 126% year-on-year, with sales of power/energy storage products accounting for 65%, 3C digital aluminum-plastic film sales accounting for 35%; operating income of 96.922 million yuan, an increase of 113% over the previous year. In 2021, the company completed multiple rounds of testing of power battery aluminum-plastic film products for customers such as Company B, Yiwei Lithium Energy, Honeycomb Energy, Gateway Power, Mengguli, etc., and was able to ship new customers Funeng Technology and Mengguli in small batches that year. Limited to production capacity bottlenecks, the company raised and invested to greatly expand the company's aluminum-plastic film production capacity by 300 million square meters, seizing a high position in the market in the context of domestic substitution.
The adhesive film business is developing rapidly, and there are plenty of membrane technology epitaxial products. In 2021, the company has built 4 adhesive film production lines and successfully put them into operation, forming a theoretical production capacity of 40 million square meters of POE/EVA film per year, with a film output of 9.879,500 square meters and sales of 8.8565 million square meters. The IPO raised 120 million square meters of production capacity will gradually reach production, which will be another growth point for the company's performance. In addition, the company also has a number of promising new technologies, including heterogeneous mesh barriers, which are expected to blossom more in the future.
Profit forecasts and investment recommendations. The company's backboard performance will continue to grow steadily. At the same time, the aluminum-plastic film business will become a new growth pole for the company's revenue. Production expansion will accelerate, and there is huge room for future growth. We expect the company's net profit to be 232/506/668 million yuan in 2022/2023/2024, maintaining the company's target price of 46.8 yuan and maintaining the “buy” rating.
Risk warning: single-sided module market shrinks; lithium battery technology iteration; fixed increase in new production capacity falls short of expected risk.