Events:
New Yaqiang issued an announcement of pre-increase in its performance for the first half of 2021, and the company realized a net profit of 145 million yuan to 148 million yuan in the first half of 2021, an increase of 69.83% and 73.34% over the same period last year.
In the first half of the year, the net profit of deducting non-return to the mother was 131 million yuan to 134 million yuan, an increase of 53.37% and 56.88% over the same period last year. Of this total, the net profit of Q2 was 74.37 million yuan to 77.37 million yuan, an increase of 5.30% 9.55% compared with the previous month. Q2 deducted the non-return net profit of 68.31 million yuan to 71.31 million yuan, an increase of 8.96% and 13.75% compared with the previous month. The demand for downstream new energy vehicles has increased steadily, while the production capacity of the company's vinyl double heads and other products has been released, and the company's performance has entered a period of high growth.
Comments:
Downstream production and sales of new energy vehicles are booming, and the industry boom consumes the company's new production capacity. According to data from the China Automobile Association, from January to June 2021, domestic production and sales of new energy vehicles completed 1.215 million and 1.206 million respectively, an increase of 206.16% and 207.04% respectively over the same period last year. Among them, the sales volume of new energy vehicles is close to 10% of the total sales of new cars, and the penetration rate of the industry is expected to be further improved. Compared with traditional vehicles, new energy vehicles have more applications in the field of silicone, such as glue instead of welding, power battery assembly, PACK sealing, structural bonding and heat conduction, battery sealing, shell bonding and so on. With the increase in the amount of silicone used in bicycles and the improvement of industry permeability, the company's silicone functional auxiliaries are expected to continue to be prosperous.
The production capacity of phenyl monomer continues to expand, creating the advantage of the whole industry chain of phenyl. The second phase of the company's annual production capacity of 10000 tons of phenyl is currently in progress and is expected to be put into production next year. The new production capacity will strengthen the company's scale advantage in phenyl monomers and provide support for downstream deep processing. Phenylchlorosilane can meet the special performance requirements such as high temperature resistance, radiation resistance and insulation, and is gradually used in aerospace, new energy vehicles, LED and other markets. The downstream deep processing of phenylchlorosilane covers many categories, such as phenyl monomer, phenyl intermediate, silicone resin, silicone oil, silicone rubber and so on, which aims to build the whole industry chain of phenyl silicone, one is to enrich the product structure to avoid risks, the other is scale and integration to enhance the company's comprehensive competitiveness.
Maintain earnings forecasts and maintain "buy" ratings. It is estimated that in 2021-2023, the revenue will be 946x122x1.636 billion, and the net profit of return to the mother will be 2.90x376xt 486 million, corresponding to PE of 28X, 22x and 17X respectively, maintaining the "buy" rating.
Risk tips: product prices fall; projects under construction are not as expected; demand decline risk.