With the landing and release of the company's investment capacity and the development of new applications, it is expected that the company's photoinitiator performance will continue to grow in the next few years. We maintain the company's EPS forecast of 1.64,2.28,3.33 yuan in 2021-2023 and 42.58% CAGR in 2021-2023. According to PEG valuation, according to PEG=1 to give 2021 43 times PE, corresponding to the target price of 70 yuan, to maintain the "buy" rating.
The net profit of homing in 2020 decreased by 45.01% compared with the same period last year, and the net profit of Q1 in 2021 increased by 66.95% compared with the same period last year.
The company achieved revenue of 1.011 billion yuan in 2020,-24.23% compared with the same period last year. In order to increase the market share of photoinitiator at home and abroad, the company strategically reduced the price and increased sales by 20.53%. The net profit was 137 million yuan,-45.01% compared with the same period last year, and 89 million yuan was deducted from the non-homed net profit, which was-63.18% compared with the same period last year.
In terms of products, the revenue of photoinitiator in 2020 was 986 million yuan, accounting for 97.53% of the company's revenue, with a gross profit margin of 25.34%, a year-on-year decrease of 12.82 pct; monomer revenue of 10 million yuan, accounting for 1.03% of the company's revenue, and a gross profit margin of 10.80%, up 6.59 pct; fine chemicals revenue of 6 million yuan, accounting for 0.58% of the company's revenue, and a gross profit margin of 45.47%, a decrease of 1.15 pct over the same period last year. The company's overall gross profit margin was 25.26%, down 12.17 pct from a year earlier. In 2020, Q4 achieved a single-quarter revenue of 304 million yuan, + 9.65% year-on-year and + 35.22% month-on-month, and realized a net profit of 23 million yuan, + 31.14% year-on-year and-41.90% compared with the same period last year. In 2021, Q1 realized revenue of 311 million yuan, year-on-year + 31.10%, month-on-month + 2.44%, net profit of 38 million yuan, year-on-year + 66.95%, month-on-month + 69.05%, and deducted non-return net profit of 26 million yuan, + 85.78% year-on-year, month-on-month + 184.07%.
The rate of total expenses decreased slightly in 2020, and the net cash flow from operating activities increased by 24.09% compared with the same period last year.
From the expense point of view, the company's sales, management, R & D and financial expense rates in 2020 were 2.12%, 6.17%, 5.16%, 0.40%, respectively, with a year-on-year change of-1.17, 1.14, 0.18, 0.47 pct, a total expense rate of 13.85%, a decrease of 0.32 pct over the same period last year. Among them, sales expenses decreased by 51.20% compared with the same period last year, mainly due to the adjustment of direct expenses related to compliance obligations to operating costs; management expenses decreased by 7.07% year-on-year, R & D expenses decreased by 21.42% year-on-year, and financial expenses decreased by 65.08% compared with the same period last year. This is due to the combination of the reduction of bank loan interest expenses and the increase of bank deposit interest income and the exchange loss of a large amount of foreign exchange receipts. In terms of cash flow, the net cash flow generated by the company's operating activities in 2020 was 191 million yuan, an increase of 24.09% over the same period last year.
The sales volume of photoinitiator has reached an all-time high, and the production and R & D capabilities go hand in hand. The company is the world's largest production, the most complete variety of photoinitiator production supplier. In 2020, the company's photoinitiator sales reached an all-time high of 16991.36 tons, an increase of 20.53% over 2019. In terms of capacity construction, the company further optimized the production processes of the three production bases in Shandong, Changzhou and Hunan, achieving a production capacity of 13203 tons per year, with a capacity utilization rate of 92.17%. Inner Mongolia has an annual production capacity of 9250 tons of series photoinitiators and intermediates, with a production capacity of 6200 tons under construction. In terms of R & D and innovation, the company added 1 core technology and 13 patents in 2020, including 11 invention patents and 2 utility models. By the end of 2020, the company had 61 patents, including 53 invention patents and 8 utility models. Presided over 2, participated in the preparation of 7 industry standards. The company's independent innovation ability and sustainable innovation ability have been further strengthened.
Strategic layout in the field of semiconductor materials, vigorously promote the localization of photoresist. In 2020, the company established the industrial development direction of "taking the light curing industry as the core and the semiconductor industry as the focus". In August of the same year, the company acquired 100% equity in Dazheng New Materials. We will continue to promote the project of 1000-ton photoresist and supporting reagents for Dazheng new materials and the progress of the project of special photosensitizer for microelectronic photoresist with an annual output of 600 tons of Dazheng information. In September, it invested in Microcore New Materials and held 12.12% of its shares. Its main business is the research and development, production and sales of KrF photoresist resins and monomers. Taking photosensitizer as the origin, the company opens up the upstream and downstream industry chain of photosensitizer and photoresist production, and is expected to realize the import substitution of photosensitizer, high-end photoresist and supporting materials.
Risk factors: intensified market competition; sharp fluctuations in product prices; production capacity construction progress is not as expected; new materials business progress is not as expected.
Investment suggestion: with the landing and release of the company's investment capacity and the development of new applications, it is expected that the company's photoinitiator performance will continue to grow in the next few years. We maintain the company's EPS forecast of 1.64,2.28,3.33 yuan in 2021-2023 and 42.58% CAGR in 2021-2023. According to PEG valuation, according to PEG=1 to give 2021 43 times PE, corresponding to the target price of 70 yuan, to maintain the "buy" rating.
