On November 1, 2021, Changyang Technology (688299) issued an announcement that Shen Meng of Southwest Securities Co., Ltd., Wei Liang of Fengyi Investment Zone, Lou Hongqiang of Ruiyi Investment, Chen Huaiyi of Huabao Fund Management Co., Ltd., Wu Xueyuan of Beijing Yongrui Wealth Investment Management Co., Ltd., and Zhang Run of Southwest Securities Co., Ltd. investigated our company on October 12, 2021.
The main contents of this survey are:
Q: What are the main operations in the third quarter of 2021?
A: In the first three quarters of 2021, the company achieved operating income of 953 million yuan, an increase of 29.47% year-on-year, achieved a net profit of 146.0884 million yuan, an increase of 8.08% year-on-year, considering the amortization of equity incentives of 32.41 million yuan in the first three quarters, after adding back (excluding the impact of income tax), net profit increased by 32.06% year-on-year, and in the first three quarters, the company achieved stable growth in revenue and profit, and better completed the business objectives. In the third quarter of 2021, the company's operating income achieved steady growth year-on-year and month-on-month, especially with the increase in the proportion of self-cutting, miniled reflective film in the operating income increased significantly, while the gross profit margin has also been greatly improved. In the third quarter of 2021, the company's equity incentive amortization expenses and research and development expenses increased significantly year-on-year, if the impact of equity incentive cost amortization (excluding income tax), in the third quarter, the company's net profit achieved steady growth year-on-year and quarter-on-quarter.
Q: How did miniled reflective film progress in the third quarter?
A: The company actively cooperates with downstream customers such as Samsung to promote the minied product plan, in the first half of the year, the shipment volume increased significantly, and the revenue increased more, but in the first half of the year, the company's self-cutting ratio was slightly lower, resulting in a slightly lower gross profit margin of this part, after June, the company made sufficient reserves in technology and production capacity to cooperate with end customers to promote the minied product plan. In the third quarter, with the increase in the proportion of self-cutting and the increase in demand from end customers, the company's minied reflective film increased significantly while the revenue increased significantly, and the gross profit margin also increased significantly, which had a more positive impact on the company's performance.
Q: What was the reason for the sharp increase in the company's R&D expenses in the first three quarters?
A: In 2021, the company invested more in R&D, and in the first three quarters, the company's R&D expenses were 67.2222 million yuan, an increase of 32.7373 million yuan year-on-year, an increase of 94.93% year-on-year. The main reasons are: the company's product new product development R & D test investment is more, especially some of the company's products into the pilot after the R & D investment is more; the company's R & D personnel increased significantly year-on-year, resulting in a large increase in employee compensation; in addition, the company's equity incentive objects in the R & D personnel more, resulting in more equity incentive expenses increased.
Q: What is the company's progress in using reflective coatings for small and medium-sized sizes?
A: Small and medium-sized size reflective film market is an important part of the company's reflective film "bigger, stronger, more refined" strategy, in the first half of this year, the company through the "business campaign" in the product development and business market focus on promoting, has achieved phased results, follow-up, the company will continue to exert efforts, enhance the company's global leadership position in the field of reflective film.
Q: Investment profile of optical base film project?
A: At present, in the case of smooth optical film product quality and customer expansion, the company actively and steadily plans the layout of production capacity to provide a strong production capacity guarantee for the company's future development and stable growth. The company plans to expand the production capacity of optical matrix film products after production of about 80,000 tons / year, the main application direction is polarizer release film and protective film, mlcc (multilayer ceramic capacitor) release film, new display pre-coated film and other optical grade polyester base film. The company plans to invest in the project in a planned and step-by-step manner. After the project reaches production, the company's optical substrate production capacity will increase significantly, and the gross profit margin of the company's optical substrate will also increase as the proportion of high-end products in the product application field increases.
Q: What is the investment profile of the diaphragm project?
Answer: The lithium-ion battery separator industry is in line with China's policy orientation for new materials, new energy and new energy vehicle industries, and from the supply side, the supply of the diaphragm industry is tight, and the industry will maintain a high market prosperity in the next few years. The company is a global leading polymer functional film high-tech enterprise with original technology, core patents, core product development and manufacturing capabilities, has accumulated rich experience in formula design, product manufacturing, equipment technology and precision coating, has a strong technical research and development capabilities, and is one of the few enterprises in China with production line planning and design capabilities. In addition, the company has introduced a number of management and technical personnel engaged in battery separator technology research and development, industrialization experience for more than 10 years, and their work experience, technical accumulation and execution ability are an important guarantee for the smooth implementation of this project. The diaphragm production capacity to be expanded by the company is about 560 million square meters / year after production, and the main application direction is new energy vehicles and energy storage. Combined with the market situation, the company has formulated a detailed business plan, and plans to invest in the project in a planned and step-by-step manner to ensure that the project achieves the expected results.
The main business of Changyang Technology: reflection film, backplane substrate film, optical substrate film and other special functional films research and development, production and sales
Changyang Technology's 2021 third quarter report shows that the company's main revenue was 953 million yuan, up 29.47% year-on-year; net profit attributable to the mother was 146 million yuan, up 8.08% year-on-year; deducting non-net profit of 139 million yuan, up 24.49% year-on-year; among them, in the third quarter of 2021, the company's single-quarter main revenue was 354 million yuan, up 10.72% year-on-year; single-quarter net profit attributable to the mother was 54.4066 million yuan, down 6.4% year-on-year. In the single quarter, the non-net profit was 51.3942 million yuan, up 24.11% year-on-year; the debt ratio was 20.54%, the investment income was 9.9312 million yuan, the financial expense was -1.1146 million yuan, and the gross profit margin was 33.48%.
In the past 90 days, a total of 8 institutions have given ratings and 8 buy ratings; the target average price of institutions in the past 90 days has been 45.17; the net outflow of financing in the past 3 months has been 32.7671 million, and the balance of financing has decreased; and the net outflow of margin is 31.5131 million, and the balance of margin has decreased. The Securities Star Valuation Analysis Tool shows that Changyang Technology (688299) has a good company rating of 3.5 stars, a good price rating of 2.5 stars, and a comprehensive valuation rating of 3 stars.