Event: exciting Technology disclosed the 2020 annual report and the first quarterly report of 2021, the annual revenue growth accelerated in 2020, the first quarter continued high growth, the return net profit posted the upper limit of performance forecast, production and marketing were booming, high-end optical films and new products further increased market share, product structure continued to optimize, and investment layout continued to promote horizontal expansion.
Business continued to improve in 2020, 21Q1 off-season is not light, the upward trend continues. The company achieved an operating income of 1.42 billion yuan in 2020, an increase of 29.55% over the same period last year, and a net profit of 137 million yuan, an increase of 111.52% over the same period last year.
20Q3, 20Q4 revenue and profits hit record highs for two consecutive quarters. 21Q1 achieved revenue of 381 million yuan, an increase of 53.02%, greatly exceeding the previous guidance level, with a net profit of 33 million yuan per quarter, an increase of 81.13%, higher than that of the forecast center. In the first quarter, it still achieved high growth under the influence of "lack of core and less screen" and Spring Festival factors, we judge that the upward trend of the company's performance is expected to continue, and the alleviation of chip shortage in the future is expected to further catalyze performance flexibility.
We will continue to strengthen fine management, the volume of high-value products will bring structural optimization, and the gross profit margin will rise steadily compared with the same period last year. In 2020, the company's comprehensive gross profit margin was 27.37%, an increase of 1.24 percentage points over the same period last year. Q4 single-quarter gross profit margin reached 26.14%, an increase of more than 1 percentage point over the same period last year. Considering the impact of sales freight in 2020 to operating costs, the actual year-on-year improvement is even more significant. Q1 gross profit margin further increased to 26.2%. Through continuous process improvement and intensive production, the company strengthens cost control, while seizing the opportunity of penetration of high-end display technologies such as quantum dots and Mini-LED, and actively making efforts to high-end. The revenue share of optical films for high-end display increased to 23.85% in 2020, an increase of 11.5 pcts over the same period last year, accelerating the opening of growth space and promoting the gradual optimization of product structure.
Photovoltaic backplane has significantly benefited from the high prosperity of the photovoltaic industry, layout packaging film and backplane film coordinated development. 2020 Photovoltaic backplane film achieved revenue of 263 million yuan, an increase of 59.55% over the same period last year, with a good growth trend. The upsurge in the photovoltaic industry has led to a surge in demand for photovoltaic backboards such as TPO and photovoltaic packaging film. The combined market share of POE film and EPE film root increased by 11% to 25.5% in 2020 compared with the same period last year, and will continue to rise in the future. The company's photovoltaic backplane has passed including Jingke, Longji and other certification and mass production delivery, new product production and sales are prosperous, capacity expansion continues to promote. At the same time, we will raise 200 million yuan to build a photovoltaic packaging film production base, which is expected to coordinate the development and strengthen the advantages of the industrial chain, and further enhance the competitive position of the photovoltaic track.
The multi-point layout of foreign investment redevelops the business territory, and the functional membrane platform enterprises are taking shape day by day. The company has previously invested in the layout of optoelectronic display (PET base film, OLED luminous material, LCP material, silicon-based OLED micro display, etc.), automobile (window film, decorative film, etc.) and other fields. Recently, it was announced that the newly established wholly-owned subsidiary Anhui Jizhi, the holding subsidiary Tianyuan New Materials (53%) and the subsidiary Ningbo Jiyang (60%) Xiangshan Jiyang, a wholly-owned subsidiary, respectively focus on solar packaging film, adhesive products, optical glue and solar photovoltaic materials, will further improve the photovoltaic display and photovoltaic industry chain, accelerate strategic layout, and shape new profit growth points in the future.
Profit forecast and investment advice: Chi Chi Technology is a domestic leader in display optical films, which now shows the leading global position of thin films and the steady growth of high-end optical films. New products such as solar backplane films are expected to benefit from industry development and technology upgrading dividends to achieve rapid development. We expect the company to achieve revenue of 25.01 pounds 30.34 / 3.599 billion yuan in 2021-2023. The net profit of returning to the mother is 2.55 pound, 367 and 515 million yuan. At present, the corresponding PE for 2021-2023 is 26.4 x, 18.3x and 13.1x, respectively, maintaining a "buy" rating.
Risk hint: the risk of intensified market competition, the risk of showing the iteration of technological renewal, and the risk that profitability is lower than expected.
