Event description
The company released its three-quarter report in 2023, realizing revenue of 1.13 billion yuan (year-on-year + 13.5%), attribution net profit of 170 million yuan (year-on-year + 15.1%), and non-net profit of 170 million yuan (year-on-year + 19.8%). Among them, Q3 achieved 410 million yuan in revenue in a single quarter (+ 47.6% compared with the same period last year, + 2.3% compared with the same period last year), realized a net profit of 72 million yuan (+ 79.4% compared with the same period last year, + 4.8% compared with the same period last year), and deducted 72 million yuan from non-net profit (+ 99.0% compared with the same period last year. + 6.0%).
Event comment
The company is a technology enterprise specializing in the production of thin carrier series products and release films for integrated circuits, chip electronic components and other enterprises. the products mainly include paper carrier belt, upper and lower tape, plastic belt and matching cover tape, release film, casting film, chip bearing plate and so on. The company realizes the self-production of raw materials such as base paper, PET base film and plastic particles, builds the advantage of integrated industrial chain, firmly grasps the advantage of customer resources, ploughs key customers such as Samsung Mechatronics and Murata of Japan, strengthens business expansion, and builds customer and brand advantages.
The market space is broad and the development prospect is good. Thin carrier tape is used with adhesive tape or cover tape to protect and orderly support and release electronic components in order to achieve efficient packaging of chip electronic components. The prosperity of chip components and surface mount technology leads to the continuous growth of thin carrier tape. It is estimated that the global thin carrier market will be about 7.23 billion in 2021, and it is expected to hit 10 billion yuan in 2025. Precision release film is mainly used in MLCC (chip ceramic capacitor), polarizer and OCA optical adhesive and other scenes, the development space is huge. It is estimated that from 2021 to 2025, the global market space for MLCC release films will increase from 26.5 billion yuan to 36.1 billion yuan.
It will enter the channel of continuous repair in 2023. Since 2023, with the recovery of terminal consumer electronics demand, the company's sales have been repaired quarter by quarter, and the performance has continued to grow month-on-month. 2023Q3's gross profit margin and net profit margin are 40.2% and 17.4% respectively, with a year-on-year change of + 14.9 pct/+3.1 pct and a month-on-month change of + 6.4 pct/+0.4 pct. The increase in the company's financial expense rate over the same period last year was mainly due to the decrease in net exchange income in the current period due to exchange rate fluctuations during the reporting period.
The company's production capacity construction and product volume are promoted rapidly. The company's fifth electronic special base paper production line project is accelerating, has entered the equipment installation stage, is expected to start trial production in the fourth quarter; the company is actively expanding tape production capacity, the current capacity has reached 3.25 million rolls; the company breaks through the field of high-end plastic belt, and currently has more than 80 plastic belt production lines of all kinds. The company's MLCC release membrane has achieved a stable batch supply to Guoju, Huaxinke, Fenghua Hi-Tech, Sanhuan Group and other major customers, and some breakthroughs have been made in the verification of medium and high-specification products. The verification and trial of large customers in South Korea and Japan have been promoted in an orderly manner, and shipments in the field of polarizer manufacturing process have increased steadily; the company has fully used self-made BOPET base membrane, and multi-specification products have passed the verification and entered the small batch trial stage, and the second phase of the project continues to advance. The company's South China headquarters built 100 million square meters of release membrane, the first line will enter trial production before the end of this year, the second line will be trial production in the first half of next year, Tianjin fund plans annual production capacity of 480 million square meters of release film; cast film project is full production and sales, the second phase of the project is expected to carry out equipment installation by the end of 2023.
The company is the leading company in the field of thin carrier in China, creating the core competitive advantage of integration, strong R & D and heavy customer.
Benefiting from the downstream demand release and national policy support, the domestic alternative market for thin carrier and release film is broad. It is estimated that the net profit attributable to 2023-2025 will be 2.5 billion yuan, respectively, maintaining a "buy" rating.
Risk hint
1. Downstream demand is lower than expected.
2. The risk of exchange rate fluctuation.