Items:
The company released the mid-year report of 2022, with revenue of 124 million yuan in the first half of the year, an increase of + 38.11% over the same period last year, and a net profit of 30 million yuan, an increase of + 18.8% over the same period last year. The net profit after deducting non-profit was 26 million yuan, up 7.66% from the same period last year. Of this total, 2022Q2 income was 63 million yuan, an increase of + 39.44% over the same period last year, and the net profit of returning to the mother was 16 million yuan, which was + 31.25% compared with the same period last year, realizing a net profit of 16 million yuan.
Comments:
High revenue growth has led to positive profit growth and continued to strengthen the domestic leading position of silica for toothpaste.
The company's revenue grew by 38% in the first half of the year, and increased to 39% in the second quarter, mainly due to the increase in customer orders; the company's overseas export revenue in the first half of the year was 19 million, an increase of + 447.37% over the same period last year. The high growth of overall revenue and overseas exports reflects that the company is constantly gaining market share in domestic and foreign markets. At the same time, the high growth rate of revenue also led to the positive growth of the company's profit, with 22H1 growing by + 18.8% compared with the same period last year, while the net profit growth rate reached 31.25% in the second quarter, a significant improvement from the profit growth rate of 21-19%. Both the increase of volume and profit and the expansion of market share at home and abroad show that the company's leading position continues to strengthen.
The increase in raw material costs has been transmitted through price adjustment in the second quarter, and the subsequent net interest rate may be maintained at 20% +.
The company's first-half gross profit margin was 35%, down about 15Pct from the same period last year, mainly affected by the rise in raw material costs and the adjustment of accounting standards for transportation expenses. Since Q2, the company's main customer orders have been adjusted to quarterly pricing, which can transmit upward pressure on raw material costs. Q2 gross profit margin is 38.1%, which is about 7.4Pct higher than Q1's 30.68%. At the same time, the raw material price locking agreement signed between the company and suppliers can also curb the impact of cost increases, and gross profit margins are expected to improve month-on-month in the next quarter of this year. The company's net interest rate in the first half of the year is 24.23%, of which Q2 net interest rate is 25.31%. Affected by the improvement in gross margin month-on-month, the subsequent net profit rate is expected to maintain 20% +.
New fields continue to advance, and semiconductor materials gradually fall to the ground. The company has a broad market space for the second and third S curves. Based on 20 years of R & D process accumulation and project experience in the field of silica for toothpaste, the company has made an active layout in product research and development and channel development. at present, the field of nano-scale semiconductor materials is gradually landing. 1) in product research and development, in the field of silicon dioxide for CMP, based on the company's accumulation in the research and development of silicon dioxide products and accurate process control capabilities, Huangpu New Materials Research Institute subsidiary and the parent company Feixue Group set up a joint venture subsidiary Feixue Core in July 2022 to engage in the research and development, production and sales of chip polishing fluid grinding materials. In the future, we can pay attention to the "uncover list" project in Guangdong Province to obtain R & D progress. In the field of food, medicine and makeup, the company already has a small batch supply, and it is expected that the application market in the future segment will be able to increase in 3-6 months after passing the customer certification. In the field of storage batteries, the company's silica project for battery separators with Deremick has entered the final verification stage. 2) in terms of channel expansion, the company has set up subsidiaries in Hong Kong and the United States overseas to broaden market coverage and promote the development of overseas markets.
Investment suggestion: based on the certainty of the high growth of the company's first S curve and the possibility of the outbreak of the second and third S curves, both volume and profit increased in the first half of the year, we adjusted the company's 22-24 year return net profit forecast to 0.7,1.11,148 million yuan (the previous value is 0.7,1.01,131 million yuan), gave 23 years 45 times PE, adjusted the target price to 41 yuan, and maintained the "push" rating.
Risk tips: major customers in the toothpaste field terminate / reduce cooperation; overseas market development is not as expected; market development in new areas is not as expected; raw material costs have risen sharply.
