The 19 annual report was released, and the performance was basically in line with expectations.
The company released its 19 annual report: in 2019, the total operating income was 3.224 billion yuan, up 0.45% from the same period last year; the net profit was 93 million yuan, down 0.84% from the same period last year; and the net profit after deducting non-return was 87 million yuan, an increase of 1.99% over the same period last year. In the fourth quarter of 1919, revenue reached 836 million yuan, an increase of 5.22% over the same period last year; the net profit of returning to the mother was 25 million yuan, an increase of 10.95% over the same period last year; and the net profit after deducting non-return was 24 million yuan, an increase of 25.25% over the same period last year. The performance is basically in line with expectations (Huatai Nonferrous team expects a 19-year return net profit of 94 million yuan), and the company's EPS in 20-22 is expected to be 0.73,1.32,1.74 yuan, maintaining the company's "buy" rating.
The processing fee has increased in the past 19 years, and the main business has a high degree of agreement with the new infrastructure.
In 19 years, the production and marketing of the company was about 71600 tons, and the company adopted the "cost + processing fee" model. The processing fee per ton in 19 years was about 4700 yuan, slightly more than the 0.45 thousand yuan per ton in 18 years. The proportion of revenue from special materials, power and radio frequency cables, and electronic and electrical materials is about 31.3%, 27.2% and 8.48%, respectively. The company's products are in line with the UHV and 5G industries mentioned in the new infrastructure.
The fundraising project 20H1 is expected to be put into production, extending to the field of material processing and active layout of electronic components.
According to the 19 annual report, in 2019, the company has a production capacity of about 70,000 tons and a fund-raising project of 30,000 tons. The company expects to complete trial production in 2020H1, including 10,000 tons of Calendering copper foil production capacity, and enter into high value-added areas such as FPC (flexible PCB). In addition, the company has set up a joint venture with Dongguan Hailuo, an electronic components company, to lay out the field of electronic components such as soaking plates to complete the deep processing of heat dissipation materials.
In the field of aerogel and heavy corrosion new materials, shareholders have strong military technical background.
Zhongyuan, a wholly-owned subsidiary, invested and acquired a 40% stake in Harbin New Materials Technology Co., Ltd., whose main products are aerogel, anticorrosive and functional materials and solutions. After the completion of the acquisition, it is proposed to increase the capital by 10 million yuan, and Zhongyuan Investment will eventually own 70%. At that time, Shao Yawei and Harbin engineering ships will hold 15% and 7% respectively. Shao Yawei, as a doctoral director in materials and engineering, has won a first prize for scientific and technological progress in the Navy. Harbin engineering ship is the core supporting enterprise of naval ship cabin environmental engineering, special functional materials and equipment integrated support software, which undertakes the matching production tasks of naval multi-key types of ships.
The company pays attention to research and development, and the net profit of 20Q1 homing increases by 43.70% compared with the same period last year.
According to the company's quarterly report for 20 years, Q1 achieved revenue of 653 million yuan, down 11.67% from the same period last year, and its net profit was 19 million yuan, up 43.70% from the same period last year. The epidemic has a negative impact on the company's revenue, but the operating cost has dropped more, which indicates that the processing fee per ton of the company's products is higher than the same period last year. In 1919, the company's R & D expenditure was about 34 million, accounting for about 10.1% of the processing fees collected. In addition, the company has a total of 614 employees in 19 years, of which 96 are technical personnel, accounting for about 15.6%.
The performance is basically in line with expectations and maintain the buy rating.
We maintain the previous profit forecast for 20-21 years and increase the profit forecast for 2022. It is estimated that the net profit of the company returning to its parent in 20-22 years will be 1.28 million yuan, corresponding to 19,11,8 times of PE. According to the company's 20-year average of 26 times Wind, the company unanimously expected PE, giving the company 24-26 times PE in 20 years, with a target price of 17.52-18.98 yuan (previous value 13.87-16.79 yuan) to maintain the buy rating.
Risk tips: copper strip and foil demand is not as expected; product yield is not as expected; radiator verification is not passed.
