The company released its semi-annual report for 2022, with revenue of 1.095 billion yuan in the first half of the year, an increase of 70.31% over the same period last year, and a net profit of 409 million yuan, an increase of 153.54% over the same period last year. Of this total, Q2 realized revenue of 563 million yuan, an increase of 50.10% over the same period last year and 5.86% month-on-month growth; the net profit returned to its mother was 219 million yuan, up 122.11% from the same period last year and 15.44% from the previous year. Mainly due to the high prosperity of photovoltaic trichlorosilicon pull the price of functional silane up.
The high boom of photovoltaic grade trichlorosilane pulled up the price of functional silane, and the performance increased significantly in the first half of the year. Driven by the demand of the photovoltaic industry, the price of trichlorosilane, a raw material upstream of functional silane, rose sharply. According to Baichuan Yingfu data, the average market price of photovoltaic grade trichlorosilane reached 26,000 yuan / ton in the second quarter, up 30.02% from the previous month. The price rise of trichlorosilane strongly supports the price of functional silane. At the same time, on the demand side, the demand for ethyl orthosilicate is driven by the expansion of the aerogel industry, and the demand is relatively stable in the field of coatings and composite materials, although the prosperity of room temperature vulcanized silicone rubber, which is widely used in the construction industry, has declined. The company's Q2 performance is still growing rapidly, which verifies that the company's rich product matrix can stabilize the performance fluctuations caused by the decline in the prosperity of a single product to a certain extent.
Aerogel layout in the next city, industrial coordinated expansion to break through the capacity bottleneck. On April 30, 2022, the company announced that it planned to sign the "annual output of 300000 tons of silicon-based and aerogel new materials project" with the management committee of Ningxia Zhongwei Industrial Park, with an investment of about 2 billion yuan. It mainly produces trichlorosilane, ethyl orthosilicate, vinylsilane, phenylsilane and aerogel materials. Ethyl orthosilicate is synthesized from silicon tetrachloride and ethanol, while trichlorosilicon is a by-product of silicon tetrachloride. The coordinated expansion of the industry will help the company to break through the bottleneck of ethyl orthosilicate production capacity (silicon tetrachloride is a dangerous chemical, product transportation has a bottleneck). At the same time, the double cycle cost advantage of hydrogen chloride and ethanol is significant, and the low production cost means that a high return on investment can be achieved at a low price.
Raise the profit forecast and maintain the buy rating: affected by the high economic situation of trichlorosilane, the price of the company's functional silane products has risen, and we have raised our profit forecast. It is estimated that the company's net profit in 2022-2024 will be 749 million yuan, 8.49 yuan and 1.049 billion yuan respectively (originally 630 pounds, 720 pounds, 832 million yuan), corresponding to 12x, 11x, 9X respectively, maintaining the "buy" rating.
Risk hint: the progress of the new project is not as expected; product prices continue to fall.
