22H1 net profit increased by 50.6% over the same period last year, maintaining the "overweight" rating Feikai Materials released its semi-annual report on August 25. 22H1 realized revenue of 1.65 billion yuan, yoy+36.8%; realized net profit of 250 million yuan, yoy+50.6%;22Q2 realized revenue of 780 million yuan, yoy+21.8%, achieved net profit of 110 million yuan, and yoy+14.5%, was slightly lower than we expected (22Q2 net profit of 125 million yuan). We maintain the company's 22-24 EPS forecast of 1.01 EPS 1.09 won 1.17 yuan, combined with comparable companies'22-year average of 30 times Wind consensus expectation PE, considering the rapid development of the company's pharmaceutical intermediates business, give the company a 22-year 30-fold PE valuation, lower the target price to 30.3 yuan (the previous value is 32.3, based on 22-year 32XPE), and maintain the "overweight" rating.
The economy of the downstream electronics industry is weak, and localization drives the growth of related materials. According to the company's semi-annual report, despite the adverse impact of COVID-19 's epidemic on the downstream electronic field, the sales of the company's electronic related products still achieved high growth compared with the same period last year. Screen display materials, thanks to the expansion of domestic panel production capacity, the company maintained sales growth of liquid crystal materials and positive photoresist, the new product negative photoresist 21Q4 increased after it was put into production, the income of 22H1 plate was 700 million yuan, and the gross profit margin of yoy+15.2%, was 40.1%, reducing 3.2pct. Semiconductor materials, the consumer electronics market downturn suppressed some downstream demand, but under the background of increasing downstream support for domestic materials, the company's semiconductor material sales still maintained healthy growth. The 22H1 plate achieved an income of 290 million yuan, and the yoy+14.3%, gross profit margin was 38.3% yoymuri 0.1pct.
The revenue of pharmaceutical business increased by 219%, and a new growth point was developed for traditional business.
22H1, the downstream of the company's pharmaceutical intermediates is driven by the rapid growth of customer demand and the diversification of product structure, and its income and profitability have improved significantly. 22H1 pharmaceutical intermediates business achieved an income of 320 million yuan, and yoy+218.6%, achieved a gross profit margin of 50.5% yoymilk 8.4pct. The sales of UV curing materials in traditional business have increased significantly in the areas of 5G, automobile and functional film. 22H1 achieved a revenue of 330 million yuan, an increase of 34.9% over the same period last year, and a gross profit margin of 30.7% yoymuri 0.6 pct. During the period of 22H1, the expense rate is 20.4%, yoy-2.7pct, and the net interest rate is 15.4%.
The 22-year restricted equity incentive plan was launched to enhance employee motivation. The company announced the restricted equity incentive plan on August 16 and completed the stock grant on August 19.
The incentive scheme involves 180 directors, middle and senior management personnel and core technical / business personnel. A total of 6.353 million shares are awarded at a price of 10.71 yuan per share. The performance evaluation target of the incentive scheme is divided into income / net profit indicators. The income target is 22 shock 22-23 shock 22-24, an accumulative increase of 20%, 150%, 290%, respectively, over the same period in 21 years. The profit target is 22Universe 22-23Compact 22-24. Compared with the same period in 21 years, the cumulative increase in 22-24 year-on-year is 16%, 141% and 274%, respectively. Equity incentives boost the enthusiasm of the company's employees.
Risk tips: raw material prices fluctuate sharply; production of new projects falls short of expectations; exchange rate fluctuations; downstream demand is lower than expected.