\u3000\u30 Beijing Jingyeda Technology Co.Ltd(003005) 96 Rianlon Corporation(300596) )
Event: on February 27, the company released its annual report for 2021. In 2021, the company achieved a revenue of 3.445 billion yuan, a year-on-year increase of + 38.74%; The net profit attributable to the parent company was 418 million yuan, a year-on-year increase of + 42.53%. Among them, 2021q4 company achieved an operating revenue of 919 million yuan, a month on month increase of + 1.16% and a year-on-year increase of + 23.44%; The net profit attributable to the parent company was 118 million yuan, a month on month increase of + 3.89% and a year-on-year increase of + 47.93%.
Comments:
Capacity release helps boost sales of anti-aging additives, multi base and multi project layout to strengthen leading position.
In 2021, it benefited from the overall volume of newly built capacity of Rianlon Corporation(300596) , Rianlon Corporation(300596) , and so on during the reporting period, and the increase in downstream market demand. The company’s production and sales of anti-aging additives improved significantly, and its performance slightly exceeded expectations. During the reporting period, the company achieved 89 thousand and 400 tons and 82 thousand and 700 tons of anti aging additives respectively, representing an increase of 48.3% and 37.1% respectively over the same period. In the context of the shortage of raw material supply and the sharp rise in raw material prices, although the average operating cost per ton of the company’s products increased by about 2400 yuan / ton in 2021, the company effectively conducted cost transmission with its leading position and operation and management ability. The gross profit margin of the company in 2021 (26.84%) was basically the same as that in 2020 (27.25%).
By the end of 2021, the production capacity of antioxidant, light stabilizer and u-pack of the company was 34900 tons / year, 21700 tons / year and 16000 tons / year respectively. At the same time, the layout of six production bases in Tianjin, Zhongwei, Hengshui, Changshan, Zhuhai and Inner Mongolia had been formed. In January 2022, the Rianlon Corporation(300596) Zhuhai phase 60000 tons / year antioxidant project has been formally put into operation. In the 2022 year, the company will further build and put into operation 3200 tons / year light stabilizer and 51 thousand and 500 tons / year U-pack capacity. After the relevant projects are put into operation, the production capacity of the company will increase by about 158% compared with the end of 2021. Further strengthen the leading position of the company in the industry. In the field of polymer additives, the company has made breakthroughs in the field of anti-aging water dispersion technology during the reporting period, and has started the annual production of 5000 tons of water dispersible antioxidant project at the Tianjin plant. At the same time, the company has also developed nanotechnology with different nano level hydrotalcite technology combined with Japanese technicians. The 20000 ton synthetic hydrotalcite project with Zhuhai Base as the carrier is also in the construction approval process.
In addition, the performance commitment of Rianlon Corporation(300596) Kaiya, a wholly-owned subsidiary of the company, has been successfully completed. In 2018, the company issued 25010420 tradable shares with limited sales conditions (transaction consideration: 600 million yuan) to purchase Hengshui Kaiya Chemical Co., Ltd. (now renamed ” Rianlon Corporation(300596) Kaiya (Hebei)) 100% equity of new materials Co., Ltd. Rianlon Corporation(300596) Kaiya’s original shareholders promised that the net profit attributable to the parent company after deduction in the consolidated statements of Rianlon Corporation(300596) Kaiya from 2019 to 2021 will not be less than RMB 50 / 60 / 70 million respectively, Rianlon Corporation(300596) Kaiya’s actual net profit attributable to the parent company after deduction will be RMB 118 million, RMB 151 million and RMB 191 million from 2019 to 2021, exceeding 136%, 152% and 173% respectively.
Continue to promote the acquisition of Kangtai shares and create the second growth curve of the company
During the reporting period, the company continued to promote the acquisition of Kangtai shares. Kangtai Co., Ltd. is the only three large-scale private enterprises in China’s lubricant additive industry. Through this M & A, the company will quickly seize China’s lubricant market share and build a world leading fine chemical platform company. The company plans to acquire 922109% equity of Kangtai shares (the target company) from 45 natural persons such as Han Qian and Yu bacon by issuing shares and paying cash. The transaction price is about 596 million yuan. The corresponding performance commitment is that the average net profit of the target company from 2021 to 2023 is 56.5 million yuan. In 2021, Kangtai achieved a revenue of 526 million yuan, a year-on-year increase of + 18.3%; The net profit was 44.5 million yuan, a year-on-year increase of + 33.5%. On December 31, 2021, Shenzhen Stock Exchange suspended the review of the above asset restructuring because the financial statements and evaluation materials of the above subject company had expired. At present, the latest financial report and evaluation information of the subject assets have been re compiled and disclosed to the public. In addition, the subject company’s “50000 ton / year lubricating oil additive construction project” has obtained all pre commencement approvals except for energy-saving approval procedures, such as the reply to environmental impact assessment. Recently, Kangtai Co., Ltd. has also submitted the relevant application documents for energy-saving approval to the corresponding authorities.
In addition to the business layout in the field of lubricating oil additives, the company also further developed new businesses in the field of medicine and biology. During the reporting period, the company and Suzhou Jima gene Co., Ltd. jointly funded the establishment of Tianjin oreff biomedical Co., Ltd., mainly engaged in nucleic acid drug monomer business, and opened the construction of pilot workshop in Tianjin Hangu base. In terms of product development, at present, Tianjin oreff has established a life science research institute to cooperate with Tianjin University in R & D of products including polyglutamic acid, so as to promote the technical progress and talent accumulation in the field of synthetic biology.
Profit forecast, valuation and rating: the company’s performance in 2021 is slightly higher than expected. We maintain the company’s profit forecast from 2022 to 2023 and add the company’s profit forecast for 2024. At the same time, we do not consider the impact of M & A of Kangtai shares on the company’s performance. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 526 million yuan, 676 million yuan and 784 million yuan respectively, and the corresponding EPS will be 257, 3.30 and 3.82 yuan / share respectively. As China’s polymer anti-aging additives, the company continues to expand its capacity and consolidate its leading edge. In addition, the company actively promoted the acquisition of Kangtai shares, arranged the lubricant additive business, and made relevant investments in the field of biomedicine to create a new growth curve of the company. We still maintain the company’s “buy” rating.
Risk tip: the progress of asset restructuring is less than expected, the capacity construction is less than expected, the downstream demand of products is less than expected, and the price fluctuation risk of raw materials and products.
