Event: the company publishes its 2020 annual report. In 2020, the company achieved revenue of 584 million yuan, + 11.25% compared with the same period last year, and achieved a net profit of 101 million yuan,-1.59% compared with the same period last year. In a single quarter, 20Q4 achieved a revenue of 161 million yuan, + 25.69% year-on-year, and a net profit of 19 million yuan,-12.88%, compared with the same period last year.
Booming production and sales boosted performance, and a sharp rise in raw material prices dragged down profits. In the past 20 years, the production and sales of wet electronic chemicals in the company's main functions are 68700 tons and 69000 tons respectively, which is + 10.05% and + 13.11% respectively compared with the same period last year. The continuous growth of the production and marketing scale of the main products has led to an increase in performance.
The 20-year comprehensive gross profit margin of the company is 28.96%,-11.64% compared with the same period last year, which is mainly due to the implementation of the new revenue criteria in this period, which is due to the adjustment of transportation expenses from sales expenses to operating cost presentation. The 20-year transportation cost is about 42.67 million yuan, equivalent to about 618 yuan per ton. In addition, the price of raw material dimethyl carbonate is a big upward drag on profits, and the price of dimethyl carbonate purchased by the company in 2020 was + 22.65% compared with the same period last year. According to wind data, the average price of 20Q4 dimethyl carbonate rose to 11801 yuan per ton, the highest price in nearly a decade. The average price of 21Q1 dimethyl carbonate fell back to 7897 yuan / ton. with the gradual correction of raw material prices, we expect 21Q1's gross profit margin to pick up.
In the construction of capacity gradually released, long-term growth momentum is sufficient. The company's Hangzhou "annual production capacity of 70,000 tons of new display material electronic chemicals expansion project" (the first phase) has been put into production in the second half of 2020, with an additional production capacity of 34000 tons of TMAH developer and 20,000 tons of mixed products, and the production capacity of TMAH developer has increased from 56,000 tons / year to 90,000 tons / year. Sichuan Glinda (Phase I) project with an annual output of 40,000 tons of wet electronic chemicals has so far invested 15.94 million yuan and is expected to be completed in June 2022.
Profit forecast and investment advice. It is estimated that the company's EPS in 21-22 will be 1.55x2.24 yuan per share respectively. With reference to the comparable company's average PE valuation in 2021, it will give the 2021 results 35 times the PE valuation level, corresponding to a reasonable value of 54.25 yuan per share, maintaining the "buy" rating.
Risk hint. Customers concentrate risk; fundraising project is less than expected risk; ownership structure risk; raw material price increases significantly.
