The company released its annual report for 2019: revenue of 625 million yuan, down 3.48% from the same period last year; net profit of 137 million yuan, an increase of 154.29%; net profit of 74 million yuan, an increase of 118.08% over the same period last year; and the weighted average return on net assets of 11.83%, an increase of 30.36pct. The company released its quarterly report for 2020:
The revenue was 96.92 million yuan, down 21.88% from the same period last year, and the net profit was 11.29 million yuan, down 53.74% from the same period last year.
In terms of products, the revenue of components and optoelectronic system business in 2019 was 280 million yuan, down 8.27% from the same period last year, accounting for 44.81% of revenue, 2.35% lower than the same period last year, and gross profit margin 49.25%, an increase of 1.82% over the same period last year. The revenue of fluoroplastics reached 205 million yuan, a year-on-year increase of 23.62%, accounting for 32.81% of revenue, an increase of 7.19% over the same period last year, and a gross profit margin of 61.30%, a decrease of 0.73% over the same period last year. Polyolefin business realized revenue of 45 million yuan, down 6.19% from the same period last year, accounting for 7.22% of revenue, 0.21% from the same period last year, 21.82% from the same period last year, and 6.48% from the same period last year The revenue of water treatment equipment reached 43 million yuan, a decrease of 33.31% over the same period last year, accounting for 6.82% of revenue, a decrease of 3.04% over the same period last year. The company's overall gross profit margin was 48.97%, a year-on-year reduction of 1.2pct.
The company's expenses during 2019 were 201 million yuan, an increase of 11.50 percent over the same period last year. During the period, expenses accounted for 32.13 percent of operating income, an increase of 4.32pct over the same period last year.
According to the latest earnings report, we adjust our profit forecast and estimate that the company's 2020-2022 net profit will be RMB 1.51168pm, EPS is RMB 0.52 per share, corresponding to PE is a multiple of 21-19-17 (2020-5-8), maintaining a "prudent overweight" rating.
Risk hint: industry competition intensifies, demand growth falls short of expectations, and gross profit margin is lower than expected.