Home » The gross profit margin of sales has declined for three consecutive years, and the performance growth of Sibao Technology is under pressure_Oriental Fortune Network

The gross profit margin of sales has declined for three consecutive years, and the performance growth of Sibao Technology is under pressure_Oriental Fortune Network

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The gross profit margin of sales has declined for three consecutive years, and the performance growth of Sibao Technology is under pressure_Oriental Fortune Network


Driven by factors such as the steady growth of the main business and the optimization of internal management,Silicon Treasure Technology(300019.SZ) Last year, revenue and net profit achieved double growth.The company’s annual report released on the evening of March 25 shows that in 2021, the company will achieveOperating income2.556 billion yuan, a year-on-year increase of 67.74%;net profit268 million yuan, a year-on-year increase of 33%; the company plans toshareholderA cash dividend of 3 yuan (tax included) will be distributed for every 10 shares.

The “Economic Information Daily” reporter noted that althoughSilicon Treasure TechnologyDouble growth in revenue and net profit in 2021, but the companyperformanceThe growth pressure appears – due to the rapid growth of operating costs and the failure of the upward pressure on raw material prices to be fully transmitted to the downstream, the company’s gross salesinterest rateAfter three consecutive years of decline, the company’s net profit growth continued to slow down.Under the background that rigid costs such as raw materials are difficult to compress, how to effectively improve the company’s products and market competitiveness has become aSilicon Treasure TechnologyAn inescapable problem.

Figure: Gross Sales of Silicon Treasure Technologyinterest rateSituation Source: Wind

  Net profit hits record high

Silicon Treasure Technology is a national high-tech enterprise mainly engaged in the research and development, production and sales of new materials such as silicone sealants. The company is in a leading position in the industry in terms of technology, brand, scale, platform, talents, and performance, and is a leading enterprise in China’s silicone sealant industry. The company’s main business includes silicone sealants and silane coupling agents.

The company said that in 2021, facing the impact of a series of external factors such as the shortage of metal silicon and the drastic price fluctuation of organic silicon raw materials, the company has taken a number of measures to actively respond to it. Expanding new channels, etc., greatly increasing market share and achieving rapid growth in annual performance.

During the reporting period, the company achieved operating income of 2.556 billion yuan, a year-on-year increase of 67.74%.

Construction glue is the main source of the company’s operating income. During the reporting period, the company’s construction rubber products achieved sales revenue of 1.771 billion yuan, a year-on-year increase of 63.04%. Among them, the sales of prefabricated construction adhesives increased by 148.79% year-on-year.

During the reporting period, the company’s industrial adhesives achieved sales revenue of 502 million yuan, a year-on-year increase of 66.47%. In 2021, the company will fully integrate the resources of the group, increase the investment in the industrial adhesive market, greatly enhance the brand awareness and influence, and further expand the market share. The company continues to expand new application fields, develop major customers and high-quality customers, and rapidly increase its market share in photovoltaics, electronic appliances, electric power, automobiles and other industries. In the field of photovoltaics, the company seizes the major strategic opportunities of “carbon peaking” and “carbon neutrality” in the country, vigorously expands the photovoltaic industry, improves product series, and launches four types of products in the photovoltaic industry: photovoltaic module sealant, photovoltaic inverter potting glue , BIPV glue, photovoltaic EVA film additives, have been successfully used in LONGi, Chint, Suntech, Haitai and other leading photovoltaic enterprises, some products have achieved import substitution.The company’s fundraising project has completed 20,000 tons of photovoltaics per yearsolar energyConstruction with glue helps the company enter the fast lane of rapid development. The company’s annual sales of adhesives for the photovoltaic industry achieved a year-on-year increase of 284.11%. In the electrical and electronic industry,Consumer Electronics5G communication, powerBattery, power supply, lighting and other fields of rapid growth in market demand. The company’s electronic and electrical industry adhesives achieved a year-on-year increase of 80.96% in sales. In the field of electric power, the company has developed comprehensively in many fields such as electric power anti-corrosion, UHV power transmission and transformation, and power grid transformation, and continues to expand new businesses. The company’s anti-corrosion materials and solutions have become the national energy group,Sinopec, Huaneng, Guodian and other large-scale well-known enterprises preferred brand. Tuoli Technology is the world’s first factory-scale large-scale RTV anti-pollution flashover coating dip coating. The products have been used in the State Grid for a long time and are exported to France, Pakistan and other countries. In the automotive industry, the company’s annual sales of adhesives for the automotive industry increased by 16.36% year-on-year.

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In 2021, the company’s silane coupling agent will seize the opportunity for explosive growth. Anhui Sibao, a wholly-owned subsidiary of the company, is a national high-tech enterprise mainly engaged in the research and development, production and sales of silane coupling agents. Silane coupling agents are widely used in photovoltaic EVA films, sealants, coatings, plastics and other industries. Anhui Sibao deeply explores market potential, deepens technological transformation, adjusts product structure, and vigorously improves product quality and output of high value-added products. During the reporting period, the sales revenue of silane coupling agents was 269 million yuan, a year-on-year increase of 116.76%.

In addition, it is worth noting that the company has grown against the trend in overseas markets. By stabilizing old customers, increasing the development of new fields, new regions and new customers, the company has achieved three-pronged overseas sales of silane coupling agents, construction adhesives and industrial adhesives, and achieved export revenue of 118 million yuan, a year-on-year increase of 131.46%

Driven by the growth of its main business, during the reporting period, Silicon Treasure Technology achieved a net profit of 268 million yuan attributable to its parent, a year-on-year increase of 33%. Wind data shows that in 2021, Silicon Treasure Technology’s operating income and net profit will both hit record highs.

Figure: Net profit of Sibao Technology Source: Wind

However, behind the performance growth, Sibao Technology is also under pressure.

Wind data shows that from 2019 to 2021, the year-on-year growth rate of Sibao Technology’s operating income was 16.94%, 49.66%, and 67.74%, respectively, showing a significant growth trend, but the year-on-year growth rate of net profit attributable to owners of the parent company was 102%. %, 52.98%, and 33%, showing a downward trend year by year.

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  Gross profit margin has declined for three consecutive years

Why is the growth rate of the company’s operating income rising, but the growth rate of net profit is declining year by year?

An important reason is that the company’s operating costs are growing too fast.

Wind data shows that from 2019 to 2021, the operating costs of Silicon Treasure Technology were 688 million yuan, 1.039 billion yuan, and 1.999 billion yuan, up 4.66%, 50.98%, and 92.46% year-on-year, respectively. It can be seen that from 2020, the growth rate of operating costs has exceeded the growth rate of revenue, and this feature will be more obvious in 2021.

In this regard, the company said that in 2021, the price of silicone polymers will rise sharply, resulting in a sharp rise in the purchase price of the company’s main raw materials.

In terms of products, during the reporting period, construction adhesives accounted for a total of 1.446 billion yuan in operating costs, a year-on-year increase of 95.18%, accounting for 72.35% of the company’s total operating costs, and the growth rate of operating costs far exceeded the 63.04% growth rate of operating income. The interest rate decreased by 13.44 percentage points from the previous year; the operating cost of industrial adhesives was 340 million yuan, a year-on-year increase of 75.25%, exceeding the 66.47% increase in operating income, and the gross profit margin decreased by 3.4 percentage points; the operating cost of the silane coupling agent during the period was 2.03 100 million yuan, an increase of 110.85% year-on-year, and a gross profit margin of 24.44%, an increase of 2.11 percentage points year-on-year.

Figure: Operating cost and gross profit margin of Sibao Technology by product Source: Company Annual Report

Wind data shows that from 2019 to 2021, the cost of sales of Sibao Technology was 67.60%, 68.16%, and 78.20%, showing a continuous increase, and the gross profit margin was 32.40%, 31.84%, and 21.80%, showing a continuous downward trend. .

It is worth noting that in addition to factors such as rising raw material prices, Sibao Technology’s operating costs have increased significantly, which is also related to its accounting presentation. In 2021, the company has strengthened the settlement management of freight charges during the period, and has been able to accurately distinguish the freight charges of products sold with confirmed revenue. According to the provisions of the new revenue standard, the company will list the freight charges incurred by the products sold as operating costs this year. The annual report shows that in 2020, the freight of Sibao Technology was 41.1715 million yuan.

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In 2021, the total cost of Silicon Treasure Technology during the period is 253 million yuan, an increase of only 2.99% compared with 246 million yuan in 2020, which is far lower than the growth rate of the company’s operating income.

Specifically, selling expenses fell the most. The company’s sales expenses during the period were 79.1771 million yuan, a year-on-year decrease of 23.38%. Research and development expenses were 110 million yuan, a year-on-year increase of 43.95%.

According to the annual report, in 2022, Sibao Technology plans to increase the sales volume of construction adhesive by 30% year-on-year, continue to increase its market share in the high-end construction industry, and consolidate its leading position in the construction adhesive industry; industrial adhesives will increase by 50% year-on-year, and enter the supply chain of leading enterprises. Strengthen the deep binding, focus on expanding the application of the company’s products in photovoltaic new energy, electronic appliances, automobiles, electric power and other fields; the domestic market of silane coupling agents keeps pace with overseas business, and achieves steady growth in performance.The company will continue to promote the intelligent manufacturing of 100,000 tons/year high-end sealant for the fundraising project, and build the remaining 60,000 tons/year high-end silicone sealant production line;Baoxin EnergyProject construction; complete the Anhui Sibao technical transformation project to expand the production capacity of silane coupling agents for photovoltaics; promote the full production of the Meishan Tuoli 20,000 tons/year functional polymer material base and R&D center project.

  Choice dataIt shows that from August 26, 2021 (the high point of the stock price, 32.10 yuan/share) to March 25, 2022, the price fluctuation range of Sibao Technology was 16.91 yuan/share – 32.10 yuan/share, and the stock price fell by 37.31% over the same period. The sector fell 5.92%, the broader market fell 17.86%, and the range turnover rate was 606.74%. As of the end of 2021, a total of 4 institutions held shares in Silicon Treasure Technology, with a cumulative shareholding of 4.7785 million shares, holding 1.43% of the shares, and the market value of the holdings was 96 million yuan. In terms of affiliated companies, Gongqingcheng Shengbang Kemi Investment Partnership Co., Ltd. (Limited Partnership) holds 3,586,800 shares, accounting for 1.08% of the circulating shares of Silicon Treasure Technology, and holds a market value of 72,309,900 yuan.CITIC Construction InvestmentfundManagement Co., Ltd. holds 1,191,700 shares, accounting for 0.36% of the circulating shares of Silicon Treasure Technology, with a market value of 24,024,700 yuan.

(Article source: Economic Reference Network)

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