20Q3 performance is + 173% compared with the same period last year, and the company is expected to release quarterly results for 2020 compared with the same period last year, with revenue of 1.318 billion yuan, + 94.33% year-on-year, and net profit of 185 million yuan, + 105.47% over the same period last year, which is close to the upper limit of the performance forecast, and the performance is in line with expectations. In a single quarter, 20Q3's revenue was 623 million yuan, + 151.44% compared with the same period last year, and its net profit was 86 million yuan, + 172.58% compared with the same period last year, mainly due to the continuous improvement of downstream wind power and the increase in sales of epoxy adhesive products. The company issued a forecast of its annual results in 2010. the estimated net profit for the whole year is 2.38-301 million yuan, which is + 70.00% and 115.00% compared with the same period last year. The gross profit margin / net profit rate of the company's 20Q3 is 35.22% / 13.82%, which is well controlled over the period of-1.78 pct;. The sales / management / R & D / financial expense rate is 5.91% / 5.76% / 4.25% / 0.35%, with year-on-year changes of-2.43% / 1.33% / 2.02 / 0.21 pct.
Adhesive sustained growth is expected, optimistic about the company's military business development and layout 1) adhesive business: mainly in the field of wind power, the wind power rush assembly industry is expected to maintain high growth in the short term. In the medium to long term, the company has made rapid growth in areas such as flexible packaging, consumer electronics and rail transit outside the field of wind power. On the other hand, the company has entered the supply chain of overseas wind power giants Vestas and Siemens Gamesa, completing business docking with Vestas, and Gomeisa has entered the stage of trial production of small quantities of blades. Breakthroughs in adhesive business in other areas and overseas customers make the company expected to achieve sustained and rapid growth in the future. 2) military business: the company further strengthens the research and development of new products and expands electromagnetic compatibility products and its extended products, covering component-level filtering products, system-level power filtering products, intelligent filtering products, and some supporting products have entered the stage of small batch production, providing strong support for follow-up development. in addition, the company has newly participated in the power supply and electromagnetic compatibility design of a certain type of aircraft in the national aviation field. Dozens of newly developed power supplies and electromagnetic compatibility products have been jointly tested, providing a new growth point for the follow-up company's performance, and the business is expected to accelerate growth.
Investment advice: maintain a "buy" rating
Taking into account the continued upward momentum of the wind power scene, we have raised the company's 2020-22 net profit to RMB 263,000,000 (the previous value is RMB319m), corresponding to the PE value in 18-15-12, and adjusted the one-year reasonable valuation to RMB25.60-29.44RMB (corresponding to PE 20-23X in 2021), maintaining the "buy" rating.
Risk tips: overseas business is not as expected; military business is not as expected; raw material prices are fluctuating.