Event: on March 25, 2021, the company released its 2020 annual report: operating income reached 4.422 billion yuan, an increase of 61.67% over the same period last year, and net profit reached 855 million yuan, an increase of 414.51% over the same period last year. The weighted average return on net assets was 56.42%, an increase of 40.03 percentage points over the same period last year. The gross profit margin of sales was 27.75%, an increase of 10.84% over the same period last year, and the net profit margin of sales was 19.65%, an increase of 13.15% over the same period last year.
Among them, Q4 realized revenue of 1.116 billion yuan in 2020, + 50.36% year-on-year and + 8.12% month-on-month; realized net profit of 75 million yuan, + 91.27% year-on-year and-64.41%; and the weighted average rate of return on net assets was 4.04%, an increase of 0.33% over the same period last year and a decrease of 7.30%. The gross sales margin was 7.37%, 9.69% lower than the same period last year and 18.71% lower than the previous year; the net sales margin was 6.98%, up 1.20% from the same period last year and 12.31% lower than the previous year.
Comments:
With the concerted efforts of the three plates, the company's performance has grown by leaps and bounds.
The company's performance achieved great-leap-forward growth in 2020, on the one hand, thanks to steady growth in all three business sectors of the company, including revenue of 426 million in the elastomer business, up 7.79% over the same period last year, and 3.578 billion in the modified plastics business, up 80.18% over the same period last year. Color masterbatch business achieved revenue of 222 million, an increase of 21.17%. On the other hand, mainly due to the epidemic situation, polypropylene melt-blown special materials have exploded, and the company has actively changed production and sent polypropylene melt-blown special materials to customers in more than 20 provinces across the country. While achieving profit growth, it has also actively fulfilled its social responsibility by supplying all its products to end customers who produce epidemic prevention materials, avoiding price speculation in a special period, and winning a good reputation and brand awareness in the industry. It has been selected as the "National key guarantee Enterprise for epidemic Prevention and Control".
TPV expands its capacity to reach production capacity, and its leading position is further consolidated
During the reporting period, the company expanded 11000 tons / year TPV production capacity has been fully put into production, the company currently has a total TPV capacity of 33000 tons / year, the industry's leading position has been further consolidated. As an ideal material to replace the traditional thermosetting rubber material, TPV has a broad development prospect. with the rise of domestic cars and the increase of the proportion of vehicles using TPV, the permeability of TPV in the automobile has increased steadily. It is estimated that by 2022, the total domestic car sales will be 32 million units, corresponding to the total TPV demand of 160000 tons. At the same time, the company actively promotes TPV into the non-automotive field, and has developed a variety of products, such as suspended splicing sports flooring materials, high-end building waterproofing materials, damping / acoustic damping elastomer materials, etc., constantly expanding its market share in different markets, and the company's profitability has been continuously improved.
Continuously increase R & D investment based on customer demand
The company has always attached importance to R & D investment and the improvement of its own comprehensive R & D strength, adhered to the combination of independent innovation and industry-university-research, carried out R & D innovation closely around the market and customer needs, and always maintained a high level of R & D investment. In 2020, the company invested 182 million yuan in R & D, an increase of 83.69% over the same period last year, accounting for 4.11% of business income; the number of R & D personnel was 245, accounting for 20.07% of the company's total employees. During the reporting period, cooperate with the R & D centers of Beijing, Qingdao and Longkou to promote the continuous upgrading of technology and products, strengthen the project reserve and the research and development of new products. By the end of this report, the company has obtained a total of 79 patents and formed a senior R & D team, which is synchronized with the advanced level of the world's new materials from product design, new product experiments to manufacturing and processing. the product differentiation and personalization have been realized in an all-round way.
Closely follow the national environmental protection policy and actively distribute the field of biodegradable materials
In order to actively respond to the requirements of national green and low-carbon development, the company signed a Strategic Cooperation Framework Agreement with China Textile Research Institute on January 16, 2021.
Focus on the layout of biodegradable materials. It is planned to invest in the construction of a project with an annual output of 120000 tons of biodegradable resin, of which the first phase includes 60, 000 tons / year PBAT plant, THF recovery unit and its supporting public works. The implementation of this project will help the company to advance into the upstream biodegradable synthesis field, extend the company's industrial chain, enhance the company's competitiveness in the market, and further enhance the company's sustainable profitability. The construction period of the project is 15 months and is expected to be put into production in 2022.
Investment rating and valuation: the company is expected to return to its parent net profit of RMB 4.12pm 4.83 / 583 million respectively in 2023, corresponding to PE of 21-18-15 times, given a "recommended" rating.
Risk tips: melt blown material prices significantly downward, downstream automobile market demand, TPV promotion progress is not up to expectations, new capacity construction progress is not up to expectations, new capacity contribution performance is not up to expectations, raw material price fluctuations, environmental policy changes, a substantial economic downturn.