Matsui shares in the first three quarters of the performance continued to maintain a contrarian growth in each business segment has achieved good results

On the evening of October 28, the third quarterly report released by Matsui Co., Ltd. (688157) showed that the company's revenue in the first three quarters was 368 million yuan, an increase of 15.84% year-on-year; the net profit was 71.8156 million yuan, an increase of 10.78% year-on-year. Among them, the operating income in the third quarter increased by 15.32% year-on-year and 12.50% sequentially. Under the background of repeated global epidemics, sharp rises in raw material prices, and continuous pressure on the coatings industry, Matsui shares continued to maintain steady growth in the first three quarters.

Since the beginning of this year, the decline in downstream terminal brand shipments caused by the repeated global epidemics and the lack of core tide has caused many adverse effects on the coating industry, coupled with the continuous sharp rise in basic raw materials such as solvents and auxiliaries, resulting in high production costs of coating products. The serious impact of the continuous rise in raw material costs is also reflected in international coatings giants such as Sherwin-Williams and AkzoNobel.

According to the data, Sherwin-Williams's sales in the first three quarters of 2021 were $15,182.5 million, an increase of about 9% year-on-year; net profit was $1,560.4 million, down about 4% year-on-year; AkzoNobel's sales revenue in the third quarter of 2021 was 2.410 billion euros, an increase of 6% year-on-year; and operating profit was 241 million euros, down 32% year-on-year.

According to statistics, the proportion of raw material costs in operating costs of Matsui shares is relatively high, and the proportion of raw materials to operating costs in the past three years has exceeded 80%. Under many external unfavorable factors, the performance of Matsui shares still maintained a contrarian growth, and various business segments have achieved good results.

From the perspective of product structure, Matsui shares in the first three quarters of wearable devices, smart home appliances, passenger cars growth rate is good, revenue increased by 71.75%, 83.20%, 226.30% respectively. At the same time, the revenue of specialty inks increased by 366.84% year-on-year, and the revenue of waterborne coatings increased by 76% year-on-year.

As a hidden champion in the domestic 3C field, Matsui Co., Ltd. expanded its business volume from two aspects to cope with the rise in raw material prices. On the one hand, the company has deeply excavated the needs of existing customers and continued to increase the shipment of products from strategic customers such as Apple, Xiaomi, OPPO, and Vivo. At the same time, the company also actively expands new high-quality customers, and establishes new business contacts and cooperation in many terminal brands such as Honor, Transsion, MOTO, Facebook, PHILIPS, Schneider, Kohler and so on.

In order to meet the environmental protection needs of customers, in the case of high costs, Matsui shares still increased R & D investment, the third quarter of R & D funds as high as 15.9181 million yuan, an increase of 21%. With the increasing downstream demand for green waterborne coating products, Apple, Huawei, Honor, Logitech, Google and other terminal brand shipments continue to increase; at the same time, the company's research projects are advancing in an orderly manner, new products have entered the delivery stage, imitation electroplating silver coatings have successfully expanded in Xiaomi, Glory and other projects and achieved mass production; environmentally friendly low-VOC inks have successfully achieved mass production on Google's new generation of mobile phone products and North American T company's automotive charging pile glass panels.

In addition, in the first three quarters, Matsui Co., Ltd. also made a breakthrough in the passenger car coatings business, with passenger car coatings revenue of 11.3984 million yuan, an increase of 226.30% year-on-year.

In the field of passenger cars, the automotive translucent car label series products developed by the subsidiary Guangxi Beichi were applied and mass-produced on Wuling NanoEV, and from January to September 2021, Guangxi Beichi achieved an operating income of 9.7769 million yuan, an increase of 688.21% over the previous year. Since entering the second half of the year, the core products of the subsidiary Songrun New Material Anti-fog Car Lamp Coating, PVD Coating, High Gloss Black Paint and other core products have been mass-produced and supplied to Geely, GAC, Nissan, Nissan, BYD, Tesla and other terminals and their mold factories, and the samples and development rights of a volkswagen and Land Rover auto parts project have been newly obtained, and From January to September 2021, Songrun New Material achieved an operating income of 6.9434 million yuan, an increase of 29.27% over the previous year.

Matsui shares recently said on the interactive platform that in the field of passenger cars, the company and Geely, Liuqi, SAIC, BYD, Tesla and other terminal cooperation projects gradually landed mass production; in response to investors asking how to break the lack of core tide, Matsui shares said that in addition to continuously expanding the existing auto parts coatings market penetration, the company will also increase the layout of the automotive coatings market in addition to parts.

It is worth noting that in the 3C product area, the company's most important source of revenue, the fourth quarter also began to have positive news. Industry insiders pointed out that with the listing of Apple's new products and Huawei's recent "back shell renewal" activity, Matsui Shares, as a major coating supplier, is also expected to continue to grow steadily in shipments in the 3C field.

This article originated from Easy Publishing