Introduction to this report:
The company's 2022 Q3 performance is in line with expectations. The downstream photovoltaic and new energy markets have maintained a high level of prosperity. After the fixed increase project is implemented, it will further guarantee the company's long-term growth.
Key points of investment:
Maintain the increase in holdings rating. Since demand in the traditional consumer industry fell short of expectations, we lowered the company's EPS forecast for 2022-2024 to 0.13 (-0.05) /0.23 (-0.06) /0.34 (-0.05) yuan. Referring to the industry's comparable valuation level while considering the high growth of photovoltaics and new energy, we gave 35 times PE for 2023, and lowered the target price to 8.05 (-2.1) yuan.
The performance was in line with expectations, and thin-film capacitors maintained a high boom. The company achieved operating income of 783 million yuan in the first three quarters of 2022, +5.32% year on year, and net profit of the mother was 53 million yuan, +58.23% year on year.
22Q3 single-quarter revenue was 264 million yuan, +9.29% year on year; return mother's net profit was 13 million yuan, +130.30% year on year; gross profit margin was 21.02%, -0.18 pcts year on year, -3.98 pcts month on month; net interest rate 4.59%, +1.99 pcts year on year, -1.58pcts month on month. Demand for thin-film capacitors is high in the downstream photovoltaic and new energy sectors, driving the company's revenue and profit growth.
The boom in photovoltaics and new energy has accelerated the pace of growth with steady increase and expansion of production. In the next few years, new energy vehicles, photovoltaics, and wind power will maintain a high level of prosperity. The company's ultra-thin polypropylene film materials are the core raw materials for film capacitors used in new energy, and the market prospects are broad. In August 2022, the company issued a fixed increase announcement. It is proposed to increase no more than 400 million yuan, of which 280 million yuan will be used for the new energy ultra-thin film material project. A total of 2 ultra-thin film production lines will be introduced. The project construction period is 4 years. After completion, the project will have an annual production capacity of 4,100 tons of ultra-thin film materials for new energy and 2,100 tons of recycled particles, which will effectively increase the company's profitability and market share, further enhance the company's core competitiveness and promote the company's sustainable development.
catalysts. New production capacity has been put into operation at an accelerated pace; the share of photovoltaics and new energy has increased.
Risk warning. Market competition intensifies; base film prices fall.