Event
Kangda Xincai publishes its semi-annual report 2022. 2022H1 achieved a revenue of 1.086 billion yuan, an increase of 28.13% over the same period last year, and a net profit of-14.672 million yuan, down 152.87% from the same period last year. The net cash flow generated by operating activities was 80.7916 million yuan, an increase of 15.98% over the same period last year.
Main points of the report:
Short-term profit space is under pressure, optimistic that the marginal improvement of 2022H2's performance is affected by the sharp rise in raw material prices, and the company's performance has been seriously damaged. 2022H1's gross profit margin was 14.01%, down 6.05 pct from the same period last year; the net profit margin was-1.36%, resulting in a loss. The company is the leader of structural adhesive for wind power blades in China, actively developing the offshore wind power market, and new products are used in the production and manufacture of super large blades. At the same time, the company has gradually completed the testing of foreign customers such as SGRE (Siemens Gamesa) and GE (General Electric Co), and accelerated the expansion of overseas markets. Wind power installation in 2022 is mainly concentrated in the second half of the year shipments, the increase in wind power demand will drive the demand for adhesive products, the company's revenue will usher in an inflection point. At the same time, with the decline in the price of adhesive core raw materials, 2022H2's profitability is expected to reverse at the bottom. In addition, the company actively expand the application of adhesives, power epoxy matrix resin products. According to the calculation, the amount of epoxy matrix resin in wind power is about 6 times that of epoxy structural adhesive. With the production capacity of the company in the future, sales are expected to increase significantly, bringing room for performance increment.
However, the new technology ITO target breaks the foreign technology monopoly and actively develops the market. However, the subsidiary company works closely with the Tsinghua Department of Chemical Engineering to break the foreign technology monopoly to produce large-size ITO targets, and is committed to continuously improving the product yield and cost advantage. At present, the company is actively exploring the market and meeting the verification needs of important customers. ITO target is an important raw material of HJT battery, which is expected to benefit from the large-scale development of HJT.
The acquisition of 60.92% stake in Caijing Optoelectronics will benefit from the upsurge in domestic alternative and new energy demand. In July 2022, the company won a 60.92% stake in Caijing Optoelectronics. Caijing Optoelectronics is the most competitive integrated supplier of flat panel display materials in China, and actively expand the semiconductor field. The company has completed the development of photoresist core material photoresist products, and the flat layer photoresist material has been tested by customers, laying a foundation for the future application of photoresist materials in display panels and semiconductors. Its lithium battery additive T3P in the field of new energy has the only production qualification in the country and is exported to Japan, South Korea and domestic lithium battery manufacturers. Benefiting from domestic alternatives and the upsurge in downstream demand for new energy, Caijing Optoelectronics performance will usher in rapid growth, and it is expected that it will continue to contribute profits to Kangda New Materials.
Investment advice and profit Forecast
It is estimated that the net profit of homing in 22-24 years is 1.95 million yuan, 364 million yuan, 507 million yuan, respectively, corresponding to PE is 24-13-9 times, maintaining the "buy" rating.
Risk hint
The risk of raw material price fluctuation; the risk that the installed capacity of wind power is less than expected; the risk aggravated by market competition.