Event: on April 26, the company released its annual report in 2022 and the first quarter report in 2023. The company's revenue in 2022 was 1.877 billion yuan, down 5.39% from the same period last year. The net profit attributed to shareholders of listed companies was 168 million yuan, down 19.97% from the same period last year. Revenue in the first quarter of 2023 was 483 million yuan, an increase of 0.97 percent over the same period last year, and the net profit attributed to shareholders of listed companies was 20 million yuan, an increase of 13.77 percent over the same period last year.
The company is a high-tech enterprise integrating R & D, production and sales of optical film, multi-functional coating composite film, adhesive tape products and other materials. it is a leading supplier of functional coating composites in China. The company's main products include functional film materials, electronic grade adhesive materials, thermal management composites, film packaging materials, polymer materials, mainly used in the field of consumer electronics manufacturing, and gradually expanded to new energy lithium batteries and other industries.
In 2022, in the face of depressed global consumer demand, the company's 22Q4 was under pressure. The revenue of the functional thin film materials business was 450 million in 2022, down 20.52% from the same period last year, but the volume of electronic-grade adhesive materials in high-end products continued to grow by 844 million in 2022, an increase of 26.43% over the same period last year. In the first quarter of 2023, the company achieved revenue of 483 million yuan, an increase of 0.97% over the same period last year, and the net profit attributed to shareholders of listed companies was 20 million yuan, an increase of 13.77% over the same period last year.
The company's customer advantage is significant, OCA business is expected to accelerate: optical transparent adhesive (OpticalClear Adhesive) refers to the specially designed acrylic pressure-sensitive adhesive with specific refractive index, transmittance and haze into a non-substrate double-sided tape, and then attach a layer of release film on the upper and lower layers. OCA optical adhesive has the characteristics of colorless and transparent, light transmittance more than 90%, good cementation strength, can be used at room temperature, curing shrinkage and so on. With the popularity of new applications such as automotive electronics, consumer electronics and 3D curved screens, new growth points have emerged in the OCA industry. The announcement revealed that the total market size of OCA optical adhesive in 2021 reached US $2.874 billion, an increase of 13.7% compared with 2020. At present, the market is mainly occupied by foreign companies such as 3M Company. The company has been in the industry for many years, and its end customers include Apple Inc, Samsung, Huawei, ZTE and other well-known enterprises. According to the 2022 annual report, 312 million yuan has been invested in the expansion project of OCA optical film production. The total investment of the OCA coating line technical transformation project is 268 million yuan, and the project schedule is 100%. The accumulated customer and product advantages of the company are expected to speed up the progress of product volume.
Deep ploughing industry for many years, continue to accumulate technological advantages: the company has always paid attention to independent innovation and technological research and development, and has been recognized as a high-tech enterprise for many years since 2009. At present, the company has a provincial high-performance adhesive material R & D center, which is equipped with a strong and high-quality technical R & D team, specializing in the research and development of optical films, adhesives and other new products. According to the annual report, by the end of the reporting period, the issuer and its subsidiaries had been granted 451 patents, including 225 invention patents, leading and participating in the drafting of five national standards for adhesives. In 2022, the company was approved by the Jiangsu Provincial Department of Science and Technology as the "innovative leader in Jiangsu Province" and the Jiangsu Business Development Promotion Association. The company was rated as "Jiangsu Merchants' specialized and special new 'industry leader, high-quality development of top 500 enterprises".
Investment suggestion: we estimate that the company's income from 2023 to 2025 will be 2.686 billion yuan, 3.766 billion yuan and 5.291 billion yuan respectively, and the net profit will be 348 million yuan, 541 million yuan and 782 million yuan respectively.
Risk hint: downstream market demand is lower than expected risk; raw material price fluctuation risk; exchange rate fluctuation risk; market competition aggravates risk.