Incidents:
The company released its 2021 annual report and quarterly report. The company achieved operating income of 323 million yuan, a year-on-year decrease of 42.55%; net profit attributable to shareholders of listed companies - 459 million yuan, an increase of -426.00% over the previous year; the first quarter report of 2022, the company achieved operating income of 21.376 million yuan, a decrease of 84.15% over the previous year; net profit attributable to shareholders of listed companies - 13.1755 million yuan, an increase of 66.59% over the previous year.
Comment:
The consumer electronics cooling component business is clearly under pressure, dragging down operating performance. The company's main products are high thermal conductivity graphite film, ultra-thin heat pipes, and ultra-thin thermal plate series products. By business, the company's revenue from cooling materials/Wuheng system/exterior structure products decreased by 45.84%/38.82%/17.67% respectively. The corresponding gross profit margin was 7.78%/27.79%/-40.89%, and the overall business pressure was obvious. The main reason is that starting in 2021, domestic smartphone shipments fell year on year, which led to a sharp decline in sales of some of the company's smart terminal customers and was unable to meet the demand for the release of existing production capacity. At the same time, the subsidiary Haicheng Optoelectronics stopped production and calculated preparations for impairment of fixed assets, one-time amortization of profit and loss of the remaining portion of the long-term amortization expenses of the leased plant, and the return of deferred income tax assets had a great impact on net profit. Factors such as rising raw material prices and falling product prices have also lowered the company's gross profit level. According to the company's annual report, on the one hand, it will provide more products and services in the 3C industry chain, and on the other hand, it will also develop more industry applications around carbon materials to optimize product structure and strategic layout.
The change in controlling rights continues to advance, and the company is expected to usher in a new business layout. During the reporting period, Mr. Xu Shizhong, the controlling shareholder and actual controller of the company, and his co-actor, Tianjin Yiyuan Enterprise Management Partnership, signed a “Share Transfer Agreement” with the Zhuhai Jinfuyuan Enterprise Management Partnership. Although the fixed increase plan introduced at the same time was terminated in the April announcement of this year, it was also clear in the termination announcement:
“The company will strictly follow the requirements of the regulatory policy and take into account the capital market and the actual situation of the company, and continue to push forward work related to control changes.” Given that the company's existing business is under heavy operating pressure, if the controlling rights are successfully changed, new shareholders are expected to introduce high-quality assets to activate the company's growth potential.
Investment advice: Based only on the company's current business forecast, the company's estimated revenue for 2022-2024 is 364/422/495 million yuan respectively, net profit of the mother is 0.08/0.29/038 million yuan respectively, corresponding to EPS is 0.04/0.14/0.18 yuan, corresponding to PE212.67/57.14/43.42X, first coverage, giving an “increase in holdings” rating
Risk warning: equity changes are not progressing as expected, existing business operations are poor, and competition worsens