Event description
In 2023Q1, the company achieved revenue of 553 million, down 17.49% year on year; The attributable net profit was 33 million, down 18.75% year on year;
Deduct 32 million non performance, down 17.47% year on year.
Event comments
Demand is under pressure, and profitability is stable year-on-year. The company's Q1 revenue declined by 17.49%, or was mainly affected by the downturn of downstream automobile, shipping and other businesses; In terms of profitability, Q1's gross profit margin is 15.9%, down 0.7% year on year, significantly narrowing compared with 2022. If the raw materials fall back from a high level in the future, the gross profit margin is expected to become positive; During Q1, the rate was 102%, up 1.1 pct year on year. Among them, the management rate and R&D rate increased 0.6 Pct, 0.3 Pct, or mainly due to the decline in revenue scale. Due to the increase in impairment losses of written back receivables over the same period last year, Q1 realized an increase of 8 million in credit impairment gains.
Although the net interest rate attributable to the parent company was 5.9%, a year-on-year decrease of 0,1 pct.
Short frame leader, looking forward to customer breakthrough. The installation of photovoltaic modules requires the use of rectangular aluminum alloy frames to protect the modules and increase the mechanical strength. In December 2021, the company signed the Cooperation Agreement on Supporting Short Frame Frame for 2GVW Flexible Module Photovoltaic Power Plant Project with China National Building Materials to provide distributed photovoltaic buckle short frames for its subordinate plants. By the end of 2021, the company's products had been launched on the national photovoltaic and energy storage demonstration experimental platform (Daqing base), and a subsidiary of Shandong Tai'an, a subsidiary of China Building Materials:
A project in Quzhou, Zhejiang Province was installed for trial use. With the increasing demand for cost reduction in the photovoltaic industry, the company's products are expected to collapse.
New opportunities from sunroof matching to vehicle sealing. The company has entered a new stage of development of vehicle sealing. Relying on the customer resources accumulated by the sunroof sealing strip, the vehicle business has been comprehensively promoted, and has gradually entered the vehicle sealing system of GAC, SAIC, Chang'an, Great Wall and other automobile enterprises. In July 2022, the company received the letter of intent for the ideal vehicle designation, and in August 2022, it received the notice for the designation of BYD development. We expect the company's vehicle sealing is expected to enter the fast lane of growth. In addition, the company has obvious advantages as a leading benchmark in the field of rail transit&shipping sealing. The rail transit leading city mainly focuses on shield water stop and vehicle sealing, and is expected to make breakthroughs in the field of rail transit vibration reduction in the future:
In recent years, the construction industry has bucked the trend, and customers have made continuous breakthroughs, reflecting strong industry competitiveness.
Capacity continued to expand. In order to seize the opportunity of vigorously developing internal circulation and adapt to the continuous development of rail transit, automobile, construction and other fields of business, the company has completed the construction of two rubber mixing production lines of the "21000 ton/year mixed rubber internal mixing project" and gradually put them into use. The subsidiary Haida Polymer New Material Co., Ltd. has obtained 78.8 mu of land use right through public bidding, which will be used for the expansion of related products of the company. The first phase of the plant has been completed with an area of 409000 square meters, and is organizing completion acceptance, certificate handling procedures, and continuous technological innovation. Both the parent company and its subsidiary Kekenuo Seiko are high-tech enterprises. The company has two basic functions, namely, sealing and reduction of rubber products, and is committed to the research and development of rubber and plastic components for high-end equipment. Since 2015 and 2022, it has been awarded the title of China's top ten enterprises in the palm rubber product industry for eight consecutive years. During the reporting period, it has obtained one invention patent, seven utility model patents and two design patents, and three trademark registration certificates issued by the State Intellectual Property Office.
Investment suggestion: It is estimated that the net profit attributable in 2023 and 2024 will be 160 million and 250 million, corresponding to PE 32 and 20 times.
Risk warning
1. The price of raw materials rose sharply
2. Weak demand in the automotive industry.
