The company released the 2021 China report. 2021H1, the company realized operating income of 195 million yuan, year-on-year + 18.94%, and net profit of 43 million yuan, + 17.35% compared with the same period last year, of which 2021Q2 realized income of 104 million yuan and net profit of 16 million yuan. We believe that the year-on-year growth in the company's performance in the first half of the year is mainly due to the rebound in domestic and foreign demand, driving the growth of the company's main business polypropylene filament performance.
Polypropylene filament for the company's main business, performance growth over the same period last year. 2021H1, the company's main business polypropylene filament total output of 14300 tons, operating income of 195 million yuan, accounting for 99.98% of the total revenue, and create a gross profit of 49 million yuan, providing the main performance flexibility; the main business income is + 18.94% compared with the same period last year, mainly due to:
(1) Export orders have increased compared with the previous reporting period; (2) domestic demand has rebounded, and on the basis of stable relations with major customers, the company has stepped up efforts to expand domestic sales business and sales orders have increased.
The company raised investment and expanded production to help the growth. 2021H1, the polypropylene fiber production capacity of the company has not increased, maintaining 33600 tons per year. In the construction capacity, the project "23000 tons of polypropylene fiber expansion project" was listed on the stock market of the company in August 2020. The construction period of the project is 18 months. After the project is successfully completed and put into production, the annual income is 345 million yuan, the annual net profit is 55.01 million yuan, and the financial internal rate of return (after tax) is 17.65%. The payback period of after-tax investment (including construction period) is 6.97 years.
New lithium diaphragm technology patents, active research and development of new downstream materials of polypropylene fiber. The company uses the R & D center construction project to further improve the R & D strength, strengthen technological innovation and product innovation, maintain the leadership of technology and products, and enhance the overall competitiveness of the company. At present, the company has mastered a number of core technologies with independent intellectual property rights, using the existing invention patent of "a lithium-ion battery separator and its manufacturing method", further research and development of island-type and skin-core structure polypropylene composite fiber, a new patent "a method of preparing lithium-ion battery separator by island COPET-PP composite negative pressure spinning", and developed a new type of lithium-ion battery separator. 2021H1, the company added two independent invention patents: a method for manufacturing lithium battery separator by PE-PP orange petal composite spinning ultra-fine denier fiber, and a method for manufacturing power lithium ion battery separator by wet papermaking process.
Profit forecast: we expect the company's EPS in 2021-2023 to be 1.16,1.23,1.39 yuan respectively, combined with the company's technological breakthrough in the field of lithium diaphragm materials, give a certain valuation premium, according to 2021 BPS 9.06yuan and 4.5-5.0times PB, corresponding to the reasonable value range of 40.77-45.30yuan, given "better than the market" investment rating.
Risk tips: the price of raw materials has risen sharply, the progress of projects under construction is not as expected, and the growth of downstream demand is not as expected.
