The company is a functional material platform manufacturer, new production capacity release product structure optimization, increased production sealant + core customer oil-based bio-based switching to further open the growth space, continue to be optimistic about the company's long-term growth.
22H1 revenue is growing steadily, and the product structure is continuously optimized. 22H1 realized sales income of 180 million yuan, yoy+19.55%, realized net profit of 67 million yuan, yoy+2.89%, realized non-return net profit of 57 million yuan, yoy+17.27%. Corresponding to 22Q2 single quarter, the company realized sales income of 97 million yuan, yoy+16.24%,qoq+20.5%, realized net profit of 39 million yuan, yoy+21.62%,qoq+35.1%, realized net profit of 33 million yuan, and yoy+22.51%,qoq+40.7%, realized sales gross profit of 61.07%. The sales / management / R & D / financial expense rates are 6.2%, 7.7%, 8.1%, 1.7%, 1.1%, 1.2, PCT, and 0.9pct, respectively, achieving a net sales interest rate of 39.56%, yoy1.75pct, qoq+4.28pct. Affected by the epidemic, rising raw material prices, IPO production capacity and other factors, gross profit margin declined slightly, Q2 overall cost control was excellent, and the net interest rate improved compared with the same period last year. From a product point of view, 22H1 electronic composite functional materials / optoelectronic display module materials / precision process Applied Materials Inc achieved sales income of 1.23 trillion yuan respectively, yoy+24.92%/+132.40%/-3.7%, photoelectric display module business is growing rapidly, and the product structure continues to be optimized.
Set to increase the production of sealant, upstream raw material extension + expand the field of application to open the growth space. In August 2022, the company issued a preliminary plan to issue A shares to specific targets, with a plan to raise no more than 390 million yuan for new high-efficiency sealant projects, innovation center projects and supplementary liquidity. The new sealant project is mainly aimed at the fields of new energy vehicles, automotive electronics and consumer electronics. It is proposed to build a 41200-ton high-efficiency sealant production platform based on power battery sealant, electric vehicle structural sealant, automotive electronic sealant, acrylic sealant for electronic products and optical acrylic sealant. After the project reaches production, it is expected to achieve after-tax profit of 160 million yuan. The chairman of the company plans to subscribe for and issue shares with no more than 169 million yuan, accounting for about 43.3% of the total funds raised. The chairman's participation in the subscription fully reflects the confidence in the development of the company.
Platform manufacturers of functional materials, the growth logic is smooth: 1) 22-year short-term point: a customer oil-based material number currently has a low share and large room for follow-up improvement, 22H2 7 old production lines + 4 new production lines are all opened, and continue to be optimistic about the performance increment brought about by production expansion. 2) medium-and long-term focus: ① high-end imported OLED production line is expected to be put into production at the end of 22Q4, early production of high-end composite functional materials and optoelectronic display module materials, followed by the introduction of OLED core materials, ② self-funded construction of Zhangjiagang acrylic acid project has made project land, subsequent production is expected to contribute to performance increment, while material self-supply is expected to improve profitability The proportion of material performance of ③ new energy vehicles is expected to continue to improve. 3) long-term view: client: international well-known consumer electronics terminal brands gradually promote the switching of materials from petroleum-based to bio-based, and the company's bio-based products have been certified by terminal customers to enjoy first-mover advantages; energy side: the company builds the remaining 7 high-precision coating lines of IPO (including an imported production line) according to the plan, and OCA optical film is also expected to be put into production.
Investment suggestion: with reference to the company's 21-year performance and the pace of production of the new production line, the company's 23-year return net profit for 22amp will be reduced from 289 million yuan to 245.33 million yuan. Yoy+33%/+34%, expects to achieve a 24-year return net profit of 445 million yuan, yoy+35%.
Risk hints: consumer electronics demand is lower than expected; new material number is introduced, new capacity utilization is lower than expected; production expansion progress is not as expected; oil-based to bio-based switching progress is not as expected.