Event: the company announced its 2020 annual report and Q1 performance forecast on February 26, 2021, of which the 2020 net profit was 21 million, an increase of 16% over the same period last year. It is estimated that the net profit of Q1 in 2021 is 25 million yuan-30 million yuan, an increase of 183.36% in 200.03% over the same period last year.
The comments are as follows:
Benefiting from the rise in volume and price in the copper foil market, Q4 net profit in 2020 reached an all-time high in a single quarter. The company announced its 2020 annual report and Q1 performance forecast on February 26, 2021, of which revenue in 2020 was 1.278 billion, down 3.29% year on year, split Q4 was 357 million, year-on-year increase of 18.20%, 2020 net profit was 21 million, year-on-year increase of 16%. Split Q4 quarter, home net profit of 45.58 million yuan, an increase of 738%, a record high for a single quarter The substantial increase in performance is mainly due to the fact that H2 benefited from the rapid development of 5G, new energy vehicles, IDC, automotive electronics, consumer electronics and other fields in 2020, and the strong demand for copper foil and copper clad laminate, especially the continuous increase in copper foil processing fees led to a substantial increase in revenue, gross profit margin and net profit. According to the company's forecast, the net profit of Q1 in 2021 is 25 million yuan to 30 million yuan, an increase of 183.36% Mui 200.03% over the same period last year. The shortage of industrial supply and demand is expected to further lead to price increases and the release of performance flexibility.
New projects are accelerated and copper foil production capacity is growing rapidly. In order to seize the market opportunity, the company has officially put into production the second phase of the high-precision electronic copper foil project with an annual output of 8000 tons in November 2010. according to the announcement, after the project was put into production, the company's copper foil production capacity has reached 20,000 tons, and the copper foil production capacity has increased by 67%. At the same time, the company has also started a new "annual production of 6 million pieces of high-end core board project" and "annual production of 20,000 tons of high-precision ultra-thin lithium copper foil project" in Meizhou to accelerate the progress of lithium copper foil and high-end core panel. especially in the field of lithium copper foil, 4.5 μ m lithium copper foil products have been successfully developed, and their competitiveness has been enhanced, and their performance has met the requirements of high-end products in the market, which is expected to bring greater capacity release in 2023.
Operating cash flow has improved significantly, and financial expenses are expected to decline significantly. In 2020, as the copper foil market was in short supply, the company took the initiative in the collection and payment link, which in turn led to a substantial improvement in the company's cash flow. According to the company's annual report, the net cash flow generated by the company's operating activities was 63.4596 million yuan, an increase of 278.75% over the same period last year. We believe that with the follow-up private promotion of the company, the company's financing costs and financial expenses are expected to decline significantly, and the company's cash flow situation will be further optimized.
Profit Forecast: we predict that the company's 2021Universe 2022 revenue will be 1.673 billion yuan respectively, and its net profit will be 180 million yuan, corresponding to PE 39max 30 in 2021-2022. We are optimistic that the company will benefit from copper foil demand and price increases in the short and medium term, copper clad laminate and PCB boom in the medium and long term, and maintain an "overweight" rating.
Risk hint: price increase is lower than expected, downstream demand is lower than expected: capacity expansion slows down