Event Overview
The company publishes the 2020 annual report. For the whole year, the company achieved operating income of 2.217 billion yuan, an increase of 24.01% over the same period last year; net profit of 22.3493 million yuan, down 43.30% from the same period last year; net profit of 23.0021 million yuan, down 41.79% from the same period last year; and basic earnings per share of 0.15 yuan, down 42.31% from the same period last year.
Analysis and judgment:
The company focuses on the main business, "two-wheel drive" occupies the market, revenue continues to maintain positive growth, and the decline in gross profit and net profit is the impact of non-recurrent items.
(1) downstream demand improved, and the company's revenue maintained positive growth in 2020-- revenue reached 2.217 billion yuan in 2020, an increase of 24.01% over the same period last year. In the case of the serious impact of the epidemic on the social economy last year, the company achieved such a performance mainly because: structurally, benefiting from the substantial increase in the demand for electronic materials such as display screens, polarizers and chips in various market segments under the tide of 5G commercialization and the Internet of things, the company adjusted its strategic layout in a timely manner and made full use of existing superior platform resources to actively develop the sales of electronic materials such as display modules, polarizers and chips. In 2020, the company's sales of electronic materials increased by 195.68% over the same period last year. (2) the company's gross profit margin has declined slightly, mainly because in order to seize the market opportunity and occupy the market share, the company increases customer stickiness by making moderate profits at the initial stage of entering the electronic materials market, resulting in a low gross profit margin of some businesses, thus lowering the gross profit margin of the company as a whole. (3) the significant decline in the company's parent net profit is mainly due to the reduced demand for engineering plastics of foreign brands such as Rakuten in South Korea and Selanis in the United States, which were sold by the company in 2020, as well as the company's adjustment of the structure of products sold in engineering plastics. take the initiative to give up part of the battery diaphragm and other business.
With the accelerated release of engineering plastic production capacity, the distribution + model of materials upstream of 3C industry volume has a broad prospect, and the growth of the company may be accelerated.
The company has begun to implement the offering projects of issuing A shares to specific objects-"Special Engineering Plastics Extrusion Molding Project" and "Special Engineering Plastics Modification and Precision injection Molding Project". The lease of its plant has been completed, the core team has been in place, and some of the equipment has been purchased and entered the stage of installation and commissioning. At present, the "Special Engineering Plastics Extrusion Project" has begun small batch trial production, and is expected to become a new profit growth point for the company in the future. In addition, the company will increase investment in information construction and R & D equipment to further build the company's long-term core competitiveness and provide a solid foundation for the company's long-term development.
Investment advice:
Since the listing, the company's revenue has always maintained a healthy growth trend, and the industry chain integration effect has been released. combined with the company's latest performance and future market prospects, it is estimated that the company's revenue from 2021 to 2023 will be 3,293.27 pm 5090.28 pm, 31.93% compound annual growth rate in the next 3 years, and 61.82 pm 146.44 pm net profit respectively. In the next three years, the corresponding annual compound growth rate will be 87.12%. (the original forecast: the company's revenue from 2020 to 2022 is expected to be 2182.53 plus 5090.28 million yuan respectively, with a corresponding compound annual growth rate of 41.75% in the next three years, and a corresponding homing net profit of 31.73pm 70.47pm 178.26 million yuan respectively. In the next three years, the corresponding compound annual growth rate is 65.35%. ) the material manufacturing and investment based on the attributes of the traditional distribution platform can show good sustainable growth prospects, giving Tongyi shares a price-to-earnings ratio of 55 times the net profit in 2021, with a valuation of 3.4 billion yuan, and the target price is adjusted from 25.56 yuan to 22.55 yuan. maintain a "buy" rating.
Risk Tips:
The risk that the listing process and profit scale of the investment project is lower than expected: the risk that the production capacity of the investment project is not as expected, the risk that the distribution business is not as expected, the economic systemic risk, and so on.