Kaili New Materials released its 2022 annual report, achieving revenue of 1,882 million yuan, +18.43% year on year, net profit of 221 million yuan, +36.02% year on year, gross profit margin 17.97% year on year, +1.86PCT year on year. Among them, Q4 achieved operating income of 583 million yuan, +59.16% year on year, +28.71% month on month, and Guimu's net profit of 46 million yuan, +26.49% year on year, -1.94% month on month.
Revenue and profit continued to rise. Q4 revenue reached a record high in a single quarter. The revenue and profit growth of multi-application, multi-business multi-point companies maintained a high growth rate in 2022. Among them, Q4 revenue levels reached a record high. Although profits declined slightly month-on-month due to negative factors such as the spread of the coronavirus, they maintained a rapid growth range. There has been a surge in many downstream fields of the company, PVC has achieved breakthroughs, and various models have blossomed more and more.
According to application segmentation: 1. The fine chemical sector maintained a rapid growth trend, and the basic market was stable: revenue from the pharmaceutical sector increased 23.92%, the pesticide sector grew 18.63%, and the two major sectors maintained rapid growth; 2. The rapid growth contribution of basic chemicals such as PVC increased: gold carbon catalysts used in PVC took the lead in industrial applications, leading to a 195% increase in sales of multiphase catalysts. Split according to pattern and business model: 1. Sales of homogenous catalysts declined by 61.6%, while revenue increased by 32.1%, unit prices rose rapidly, and high-end was obvious; sales of multiphase catalysts increased 195.3%, revenue remained flat, and basic chemical fields such as PVC increased significantly; 2. Sales and processing maintained an increase in revenue and gross margin.
Financial indicators are full of details. Inventory and contract debt growth is a leading indicator of future growth. Inventory balance increased 160 million yuan at the end of 2022, of which inventory products increased by 59 million yuan, working materials increased 72 million yuan, and the company's contract debt balance increased 25 million yuan compared to 2021. Since the company's business is an order sales model, this portion of inventory and contract debt is expected to be converted into revenue in the future, providing effective support for future growth.
Research and development in various fields went hand in hand, with rapid growth in personnel, patents, and ongoing research projects, and Kaili New Materials R&D investment remained at a high level: 1. 2022 generated 57.12 million yuan in R&D expenses, maintaining a high level; 2. 20 new technicians were added, including 9 additional doctorates; 3. A number of ongoing research projects were added in 2022. Among them, there is no shortage of R&D in various fields of new energy, environmental protection and basic chemicals.
The fixed increase project targets various fields of basic chemicals and hydrogen energy. On February 6, 2023, the precious metals and non-precious metals company issued the “2023 A-share Issuance Plan to Specific Targets”, which raised no more than 1,075 million yuan. It raised no more than 1,075 million yuan. Production capacity has expanded greatly. The project is expanding in the direction of many research products that have been reserved in the past. The project is expanding in the direction of many research products stored in the past. It is confident that it will grow in these fields in the future.
Profit forecast: Considering depreciation of capital expenses, we fine-tuned the net profit forecast for 2023-2024 to 322/40 million yuan (previous value of 338/430 million yuan). The estimated net profit of 2025 is 499 million yuan, giving 40 times PE valuation in 2023, with a target price of 98.3 yuan/share to maintain the “buy” rating.
Risk warning: the risk of iterative technological upgrades in the industry; the risk of fluctuations in precious metals prices and high capital consumption; the risk that fixed increases cannot be issued or that project progress does not meet expectations;