Announcement: 22Q1's revenue was 250 million yuan, up 27.0% from the same period last year, down 3.0% from the previous month, and its net profit was 43 million yuan, down 18.2% from the same period last year, 29.1% from the previous year, deducting 42 million yuan from the same period last year, down 18.5% from the same period last year and 20.7% from the previous year. Earlier, the company disclosed its 21 annual report that its revenue was 970 million yuan, an increase of 62.7% over the same period last year, and the net profit returned to its mother was 240 million yuan, an increase of 49.6% over the same period last year, deducting 220 million yuan from non-net profit, an increase of 43.6% over the same period last year.

22Q1 is affected by the sharp rise in brocade prices, the gross profit margin has declined, and 22Q2 is expected to pick up gradually. 22Q1 gross profit margin 32.1%, down 9.1pct, month-on-month drop 3.0pct, net profit 17.0%, down 9.4pct, month-on-month decline 6.2pct. Affected by the sharp rise in the price of raw materials and the continued strength of the RMB exchange rate, 22Q1's profitability continues to be under pressure. According to Shanghai Nonferrous, the average tax-inclusive price of 22Q1 Jinchuan Jinjin rose from 156000 yuan / ton to 223000 yuan / ton, an increase of more than 40%. After the company transfers part of the risk of price changes of raw materials to the downstream, it is expected that the gross profit margin of 22Q2 will gradually pick up.

In the past 21 years, the brocade powder business has increased rapidly, the customer structure has been optimized, and the new products have been accelerated. In 21 years, the revenue of brocade powder was 800 million yuan, an increase of 61.6% over the same period last year, and the sales volume was 1530 tons, an increase of 70.5% over the same period last year. In 21 years, the unit raw material cost of brocade powder increased by 37.9%. Through the savings of labor and manufacturing costs, the company controlled the increase in unit cost to 5.5%, and the annual gross profit margin decreased by 38.3% compared with the same period last year. 7.Opct. For 21 years, the company deeply ploughed brocade powder and copper powder for consumer grade MLCC, and accelerated the layout of finished 80nm brocade powder, automotive specification grade MLCC brocade powder, copper powder sample delivery and customer certification. In 22 years, it will speed up the promotion of 80 nm, 180 nm.

200 nm finished product brocade powder market layout. In 21 years, the sales volume of Top5 customers was 800 million yuan, accounting for 82.1%. The sales volume of Samsung Motor, the largest customer, was 620 million yuan, accounting for 64.4%, down nearly 3pct from the same period last year. The domestic and Japanese market powder sales revenue increased by 143.0% and 65.3% over the same period last year. The domestic market is growing rapidly and the customer structure is optimized.

The growth of alloy powder and silicon powder set sail. In addition to brocade powder, the revenue of copper powder and silver powder in 21 years was 50 million yuan / 30 million yuan, an increase of 25.8% and 15.1% over the same period last year, accounting for 4.8% and 3.6% of the income. In 21 years, new products such as alloy powder and silicon powder earned 5 million yuan / 36000 yuan with a gross profit margin of 32.9% and 8.5%, of which the revenue of alloy powder increased by 469% over the same period last year. With the improvement of product performance and the promotion of market development, the second curve constructed by new products such as alloy powder and silicon powder will be gradually formed.

The product verification of nano-silicon powder and silver-coated copper powder has been carried out smoothly, and production expansion has been planned for 22 years, which is the basis of uncertain quantity. For 22 years, nano-silicon powder will continue to respond to the needs of customers to improve energy density and cycle stability, timely expansion of silver-coated copper powder will focus on the benefit optimization goal of mass production of HJT batteries, continuously optimize the existing production process in a uniform and equal manner, speed up the automation of production equipment, and carry out production expansion in a timely manner. It is expected that more than 23 years of two new products are expected to be released.

Adjust earnings forecasts and maintain buy ratings. It is optimistic that the company's brocade powder business will continue to achieve high growth through expanding customers, expanding new products and expanding new areas, and the layout of new products in the second curve will be promoted solidly. Taking into account the pressure of rising prices of raw materials, the 22-year net profit forecast was lowered to 3.3 / 440 million yuan (original value 4.0 / 530 million yuan), and the 24-year forecast of 520 million yuan was added to maintain the buying rating.

Risk tips: lower-than-expected demand growth; lower-than-expected volume of new products; raw material price rise risk; exchange rate risk litigation risk, etc.