The company publishes its 2022 semi-annual report. 2022H1 achieved revenue of 455 million yuan, year-on-year + 36.72%; net profit of 93 million yuan, + 48.62%; and basic earnings per share of 0.47 yuan per share. In a single quarter, 22Q2 achieved revenue of 213 million yuan, year-on-year + 32.59%, month-on-month-11.81%; net profit of 54 million yuan, year-on-year + 70.93%, month-on-month + 35.68%; gross profit 32.40%, month-on-month + 5.86pct; net profit 25.13%, month-on-month + 8.80pct.
The price of raw materials has fallen, and the product price gap has continued to widen. According to the announcement of operating data, the prices of wet electronic chemicals for the main functions of 22Q1 and Q2 companies are 10357 yuan / ton and 10155 yuan / ton, respectively, compared with the same period last year. The price of DMC, the main raw material, continues to decline. According to wind data, the ex-factory prices of 22Q1 and Q2 Stone Shenghua DMC are about 8173 yuan / ton and 5529 yuan / ton. According to the prospectus, according to the company's 2019 caliber, for every 10% increase in the average purchase price of DMC and trimethylamine, the company's comprehensive gross profit margin fell by 1.55% and 1.23%, respectively.
Tamping the main business, the product structure is continuously optimized. While maintaining the advantage of TMAH developer, the company further develops and expands the market of new products such as fluorine-containing buffer oxidation etching solution (BOE etching solution) and stripping solution. Among them, photoresist stripping solution products are being tested and verified in several leading domestic brand factories on the basis of completing the quantity supply of domestic brand flexible OLED factory; fluorine-containing buffer oxidation etching solution (BOE etching liquid) has achieved volume supply in Chongqing BOE, Hefei Weixinuo and Tianma Microelectronics three leading customers.
Fund-raising and projects under construction are making steady progress. The "production expansion Project of Electronic Chemicals with an annual output of 70,000 tons of new display materials (Phase II)" is expected to be put into trial production in 2022. Sichuan Glinda 100kt/an Electronic Materials Project (Phase I), a fund-raising project, has completed the installation of the main part of the civil construction and the main equipment, and is expected to be put into trial production in December 22.
Profit forecast and investment advice. It is estimated that the company's EPS in 22-24 will be 1.01 euro 1.47 yen per share respectively. With reference to the comparable company's 2023 PE valuation, it will give the 2023 results 30 times the PE valuation level, corresponding to a reasonable value of 44.06 yuan per share, maintaining the "buy" rating.
Risk hint. The fund-raising project is not as expected; the price of raw materials has increased sharply; the risk of customers is concentrated.