The company released its 2022 annual report. The company achieved revenue of 3.312 billion yuan in 2022, an increase of 30.62% over the previous year, and Guimu's net profit of 1,040 million yuan, an increase of 52.16% over the previous year. Among them, Q4 achieved revenue of 649 million yuan, a decrease of 20.15% over the previous month, and Guimu's net profit was 209 million yuan, a decrease of 15.37% over the previous year.
In 2022, the company plans to distribute a cash dividend of 1.2 yuan per share to all shareholders based on the total share capital registered on the day the equity distribution was implemented, an increase of 0.4 shares per share.
There was a strong increase in performance throughout the year, and the decline in the economy still showed high profit resilience. In the first half of 2022, affected by the high demand for photovoltaics, the sharp rise in the price of silicon trichloride led the price of silane to a historic high. The second half of the year was affected by both supply and demand. Industry competition intensified, and the silane boom declined. According to Baichuan Yingfu data, the average price of sulfur-containing silane in the fourth quarter was 24,000 yuan/ton, down 10.24% from the previous month. The average price of epoxy silane was 48,100 yuan/ton, a decrease of 24.84% from the previous month. The average price of acylsilane is 30,200 yuan/ton, ring There was a decrease of 9.94%, but the company still showed high profit resilience in the fourth quarter. Net sales interest rate increased 1.82 pct to 32.25% month-on-month, mainly due to (1) the further improvement of the industrial chain layout. The company's annual production of 60,000 tons of hydrochlorosilicon project was put into operation in July 2022, forming a complete green cycle from raw materials to final products to reduce production costs; (2) the company's export orders were priced on an annual or semi-annual basis, influenced by falling product sentiment, and were less volatile than domestic sales orders.
The R&D driven silicon-based material platform can be expected to grow over the long term. The company attaches great importance to R&D and production centered on silicon-based compounds, and continues to expand the range of silane products. The initial fund-raising project, the functional silane coupling agent and intermediate project, has completed construction investment of 212 million yuan, and production capacity is expected to be added by 15,000 tons in 2023. An annual output of 2,000 tons of high-purity quartz sand and a 2,000-ton aerogel composite project will form a map for expanding its own raw material, silicon tetrachloride into high-end materials and high-value fields.
Maintain profit forecasts and maintain the “buy” rating: the company's functional silane coupling agent and intermediate projects will be partially put into operation this year, the high profitability of silicon trichloride will be consolidated after production, and the R&D-driven silicon-based material platform is expected to enjoy high valuations. The company's revenue for 2023-2025 is estimated to be 33881, 4198, and 50.26 billion yuan respectively (adding 2025 revenue of 5.026 billion yuan), and Guimo's net profit is 1,022, 13.16 billion yuan, 1,553 billion yuan (adding 2025 net profit of 15.53 billion yuan), respectively. The corresponding PE is 12X, 9X, and 8X respectively, maintaining the “buy” rating.
Risk warning: The progress of the new construction project falls short of expectations; risk of falling demand