2021-10-25Debon Securities Co., Ltd. Li Ji, Shen Yingjie conducted a study on the national porcelain material and released a research report "The performance of the first three quarters increased by 44.69%, and the three major businesses advanced in an orderly manner", this report gives a buy rating to the national porcelain material, and the current stock price is 44.62 yuan.
National Porcelain Material(300285)
Event: On October 22, the company announced that the company achieved revenue of 2.273 billion yuan in the first three quarters of 2021, an increase of 24.37% year-on-year; and achieved net profit attributable to shareholders of listed companies of 601 million yuan, an increase of 44.69% year-on-year.
In the first three quarters, the performance growth rate was remarkable, and the rate control was good. In the first three quarters of 2021, the company achieved revenue of 2.273 billion yuan, an increase of 24.37% year-on-year; net profit attributable to the mother of 601 million yuan, an increase of 44.69% year-on-year; and net profit attributable to the mother after deduction of non-deduction of 546 million yuan, an increase of 37.19% year-on-year. Among them, the third quarter achieved revenue of 800 million yuan, an increase of 6.38% year-on-year, achieved a net profit attributable to the mother of 207 million yuan, a year-on-year increase of 31.57%, and achieved a net profit of 190 million yuan, an increase of 23.95% year-on-year. The company's expense control is well-controlled, the sales rate in the first three quarters was 3.80%, down 1.47pct year-on-year, and the management expense ratio was 5.07%, down 0.19pct year-on-year.
The strategic layout of dental science is steadily advancing. On July 27, 2021, Shenzhen Aerchuang Technology completed the change of registered capital, shareholders and other industrial and commercial registration information, and obtained the "Business License" issued by the Shenzhen Municipal Market Supervision and Administration Bureau. On September 23, 2021, the Company received $200 million in investment and $500 million in borrowings from strategic investor CareCapitalUPCHKHoldings Limited. On September 27, 2021, Shenzhen Aerchuang Technology has also completed the filing of changes to relevant directors and supervisors. As of the end of the third quarterly reporting period, all the procedures for shenzhen aertron technology to introduce strategic investors have been completed, and the layout of the plate has been steadily advanced.
The fundraising project changed the implementation location, and the capacity of the MLCC plate was increased. On July 28, the company issued the "Adjustment of investment scale and change of implementation location of some fundraising projects". In terms of honeycomb ceramics, the company intends to change the project implementation site from the original four factories of the company to the four factories of the company and the new functional ceramic new material industrial park, fully benefit from the preferential policies of the supporting industries in the park, and the company can also use the existing factory buildings and industrial cluster effects of the functional ceramic new material industrial park to accelerate the construction of fundraising projects, reduce production costs, and improve the competitiveness of the product market. In terms of MLCC, benefiting from the steady release of downstream demand and production capacity, the company increased the total project investment from 280 million yuan to 398 million yuan, the amount of proposed investment of the raised funds remained unchanged, and the rest of the funds were invested by the company's own funds, and the original production capacity of 2500 tons / year was adjusted to 5000 tons / year. The capacity increase is expected to further consolidate the company's position in the industry.
Investment proposal: The company expects earnings per share for 2021-2023 to be 0.75, 0.98 and 1.20 yuan, respectively, corresponding to PE of 59, 45 and 37 times, respectively. Referring to the current average PE level of 66 times in CS's other chemicals sectors, considering the steady improvement of the company's three major businesses, the business of each sector is advancing hand in hand, the long-term growth is significant, and the "buy" rating is maintained.
Risk Warning: Downstream demand is less than expected, product price fluctuation risk, and the promotion of China VI standards is less than expected.
In the past 90 days, a total of 14 institutions have given ratings, 10 buy ratings and 4 overweight ratings; the average target price of institutions in the past 90 days has been 55.46; the Valuation Analysis Tool of Securities Star shows that the good company rating of China Porcelain Materials (300285) is 4 stars, the good price rating is 2 stars, and the valuation comprehensive rating is 3 stars.