The company's investment projects are oriented to high-end subdivision applications, start a wave of product upgrading, and maintain "buy" rating companies to comply with the development trend of the industry. with its own capital of 780 million yuan, it is planned to invest 780 million yuan to build a high-performance copper clad laminate intelligent factory project with an annual output of 1500 million square meters of high-end display technology. the construction period of the project is 18 months (from September 2021 to February 2023). Taking into account the rising price of copper clad laminate and new production expansion projects, we raised our previous profit forecast. We estimate that the company's operating income for 2021-2023 will be 46.5pm 62.2pm 78.2 million (the previous value is 41.5x54.9pm 70.3 million), and the parent net profit will be 4.7pm 6.0pm 7.7 (the previous value is 39mm496.2) million yuan, YoY+244.8%/29.1%/27.7%. The EPS is 2.00 shock 2.58 shock 3.29 yuan, and the current stock price corresponds to 21.7 PE 16.8 shock 13.2 times in 2021-2023. The company's production expansion and product upgrading support steady growth. The new design plan adopted by the new plant is conducive to operational efficiency improvement, cost reduction, profitability increase, and maintain the "buy" rating.
Copper clad laminate business effectively transmits the cost of upstream raw materials, under the trend of price increase, the company effectively transmits the cost of upstream copper foil, glass fiber and resin, and its profitability rises sharply. We estimate that the quarterly output of the company's 2021Q2 is about 6.9 million pieces, and the average unit price of QoQ+11.3%, is about 168yuan / sheet (assuming the matching adhesive sheet is included). The single-quarter gross profit of 2021Q2 is 19.7% 2021Q1 QoQQ 0.8pct. It is estimated that the average gross profit of copper clad laminates has increased from 25 yuan per sheet to 33 yuan per sheet, and the net profit per quarter has reached 12.3% QoQ + 3.0pct. The average net profit of a single sheet of copper clad laminates has increased from 12.4 yuan to 20.7 yuan. Looking forward to 2021H2, considering the company's customer structure dominated by domestic PCB manufacturers, the price of copper clad laminate fluctuates little, and if the cost of copper foil rises due to rising processing fees, the product price may rise again.
The new project is aimed at Jiangxi N6 plant, product upgrading and domestic PCB capacity supporting driving growth PCB industry supporting forced upstream domestic copper clad laminate manufacturers to expand production, the company's pace of production expansion is accelerated, is expected to enjoy the downstream expansion of copper clad laminate matching opportunities. This announcement project is for Jiangxi N6 factory to expand production, for MiniLED and other high-end display applications to launch HDI, IC substrate materials, in the field to achieve domestic substitution, support revenue growth. Jiangxi's new factory has outstanding efficiency advantages. Previously, the cost of the N4 plant has been reduced by more than 30% compared with the N1 factory, and with the mass production of high-end display materials in N5 and N6 plants, profitability is expected to rise again.
Risk hints: weaker downstream demand leads to lower-than-expected production expansion, lower CCL prices lead to impaired profitability, upstream raw material prices erode costs, and competition in high-speed CCL industry intensifies.
