Guimu's net profit rose sharply year over year. In 2022, the company expects net profit attributable to shareholders of listed companies to be 375-405 million yuan, 214 million yuan for the same period last year, an increase of 76%-90% over the previous year, net profit after deduction of 333-363 million yuan, and 207 million yuan in the same period last year, an increase of 61% to 76% over the same period last year.

Revenue from the pan-semiconductor materials business increased dramatically. The total revenue of new semiconductor materials is expected to be 540 million yuan, and the share of revenue continues to rise to about 20%. Among them: CMP polishing pad sales revenue is expected to exceed 4.7 billion, an increase of 56% over the previous year. The flexible display materials YPI (yellow polyimide) and PSPI (photosensitive polyimide) have both achieved steady growth in clients. Total sales revenue is expected to be 50 billion yuan, an increase of 470% over the previous year. CMP polishing liquid and cleaning solution have achieved large-scale sales of some products, with a total sales revenue of nearly 0.2 billion yuan.

The profit level of traditional businesses increased year over year. The printing and copying general consumables business generated revenue of nearly 2.2 billion yuan, and profitability increased significantly over the same period last year. The advantages of the company's entire industry chain layout continue to be highlighted. The revenue and profit scale of the upstream color chemical toner and consumables chip business has reached new highs in recent years; terminal cartridges have developed well, and sales have reached new highs in recent years, not only turning a loss into a profit, but also achieving a sharp year-on-year increase in profit; the overall competitiveness of the cartridge business continues to be steady.

Investment advice

The company's revenue for 2022-2024 is estimated to be 2,740/35.38/4.313 billion yuan respectively, up 16.3%/29.1%/21.9% year on year, and net profit of 385/55/ 682 million yuan respectively, up 80.3%/35.2%/30.9% year on year. The current closing price is 45 times PE corresponding to 2023. Considering that the company will benefit from import substitution, there is plenty of room for future growth and maintain the “buy” rating.

Risk warning

Product development fell short of expectations, production capacity construction fell short of expectations, and market competition intensified.